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Evaluate percentage basis taxes

I'd like to evaluate the following:

1) An increasing (additional) 1% business income tax for income from the production of new fossil fuel vehicles, infrastructure, or devices*.

I recently took a course on climate change and there was a one line mention that we could "raise the cost of capital for emitters or producers", but there were not many examples of people pursuing that.

2) A % sale-price based carbon fuel tax, to increase the cost of using any fossil fuel at a similar rate.  (No incentive from switching from coal to methane)

Is En-Roads the right tool to modify to try to see how effective these might be?
Any advice or feedback welcome!

* More details here: https://bryanquigley.com/pages/climate.html

Hello Bryan,

I am not an expert so don't quote me on my answers. About your first question, as far as I know, the energy infrastructure cost is not described in En-ROADS. The only costs are related to energy consumption.

About your second question, I think you can tax all the fossil fuels by the same % (Coal +20 USD/tce = +30%, Oil +15USD/boe = +30%, Gas +1 USD/Mcf = +30%).
I am looking forward to hearing your feedback.

Best regards,

Heathcliff Demaie

Thank you!


I was able to simulate the difference - and was able to make a carbon tax equal to the cost of the above taxes. It turns out carbon tax is more effective (without simulating infrastructure investments as well) which makes sense.


This did leave me to see that the most effective is an outright ban on new coal, oil, gas infrastructure.  Will pursue something else to help with #1.


Thanks again!

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