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Should Carbon Taxes Be Additional to Other Transport Fuel Taxes?

David M Newbery

Year: 1992
Volume: Volume 13
Number: Number 2
DOI: 10.5547/ISSN0195-6574-EJ-Vol13-No2-3
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Abstract:
If transport fuel is taxed as a method of charging for road use and congestion, then, as a first approximation, carbon taxes should be superimposed on the existing taxes and the final price of transport fuel should rise by somewhat more than the carbon tax. If transport fuels are already taxed, the cost of meeting the emissions target will depend sensitively on whether the reduction in CO2 emissions is a proportion from base levels or to a target level, depending on factors other than fuel consumption (GNP or population).



What future(s) for liberalized electricity markets: efficient, equitable or innovative?

David M Newbery

Year: 2018
Volume: Volume 39
Number: Number 1
DOI: 10.5547/01956574.39.1.dnew
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Abstract:
Well-designed electricity liberalization has delivered effciency gains, but political risks of decarbonizing the sector have undermined investment incentives in en-ergy-only markets, while poorly designed regulated tariffs have increased the cost of accommodating renewables. The paper sets out principles from theory and public economics to guide market design, capacity remuneration, renewables support and regulatory tariff setting, with an illustration from a high capital cost low variable cost electricity system. Such characteristics are likely to become more prevalent with increasing renewables penetration, where poor regulation is already threatening current utility business models. The appendix develops and applies a method for determining the subsidy justifed by learning spillovers from solar PV.





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