The EC proposal for combining carbon and energy taxes. The implications for future CO2 emissions

Abstract As part of its comprehensive strategy to control CO 2 emissions and increase energy efficiency, the European Community is considering new taxes on most major sources of energy. This analysis employs the Global 2100 model to evaluate the EC proposal — both for the USA and for Western European countries as a whole. Our calculations indicate that the proposal is unlikely to achieve its long-term targets for emissions reduction. Moreover, since it provides for a tax on nuclear energy, this feature will add to the difficulties of reducing carbon emissions.