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This chapter presents a fundamental framework for analyzing climate policies, particularly focusing on carbon taxation in a static setting with perfect competition. We begin by developing a simple model where capital serves as the sole production input, allowing us to establish core concepts and mechanisms.

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A Basic Static Model

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  • 发表日期：

    2025年

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  • Ying Tung Chan,
  • Dayong Zhang

摘要

This chapter presents a fundamental framework for analyzing climate policies, particularly focusing on carbon taxation in a static setting with perfect competition. We begin by developing a simple model where capital serves as the sole production input, allowing us to establish core concepts and mechanisms.