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This paper is the first attempt, to the best of our knowledge, to study the impact of a carbon tax by means of a heterogeneous agents model. The objectives of the paper are two: i) To assess how the results of a representative agent model compare to those coming from a model accounting for heterogeneity across agents when evaluating aggregate economic and environmental impacts of a carbon tax; ii) To assess the distributional implications of a carbon tax (and equivalent cap) and how they can be mitigated through different recycling schemes or allocations.

Keywords: Carbon Tax ; Double Dividend ; Heterogeneous Agents Model

Subject(s): Environmental Economics and Policy

Issue Date: 2013-09

Publication Type: Working or Discussion Paper

PURL Identifier:

Total Pages: 29

JEL Codes: Q58; Q54; E2

Series Statement: CCSD


Record appears in: Fondazione Eni Enrico Mattei (FEEM) > Climate Change and Sustainable Development

Autor: Bosetti, Valentina ; Maffezzoli, Marco


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