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Fiscal Interactions and the Case for Carbon Taxes over Grandfathered Carbon Permits

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Figure

Figure 1. Primary Abatement Costs
Figure 2. Tax Distortions in the Labor Market  D LSL 0 employmentL011−tGross wage, net wageL*
Figure 3. Policy Costs with Fiscal Interactions Relative to Primary Costs  012345678 0 0.1 0.2 0.3 0.4
Figure 4. Relative Policy Costs Accounting for Tax Deductions  -5-4-3-2-1012345 0 0.1 0.2 0.3 0.4

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