Swiss energy taxation options to curb CO2 emissions

Abstract

This study offers insights into the design of economically efficient policies to curb carbon dioxide (CO2) emissions in Switzerland and in other European countries. The method uses a model of the energy system to investigate various options for taxation to reduce CO2emissions. This study proposes as a first option the introduction of a ‘hedging tax’, that balances the risks of delaying measures to reduce CO2 emissions against those of premature reduction measures. It then assesses multinational policy options and considers as a second alternative international co‐operation to curb joint CO2 emissions by means of a uniform tax applied in different countries. The simulation of such a strategy among three European countries (Switzerland, the Netherlands and Belgium) suggests that there may be significant benefits to be gained when CO2 reduction takes place in the countries where it is relatively cheap to do so. © 1998 John Wiley & Sons, Ltd and ERP Environment.

Proceedings of 2008 IEEE International conference on service operations and logistics, and informatics IEEE/SOLI-2008

“…We are currently exploring the shadow prices approach through an optimization problem called the "share of choice" model (see for instance [9], for an application of share of choice models for services). This concept of shadow pricing has already been used to price C02 emissions in the case of uncertain energy demands see [2]. The model proposed in this paper attempts to optimize the design of a service by selecting its attributes according to the perceived value of a sample of clients.…”

Pricing of the Knowledge-Based Services: Insight from the Environmental Sciences

“…Thanks to the duality properties of mathematical programs, it is possible to establish a formal link between the allocation of resources used to produce services and their associated pricing. For instance, it has been used to price CO2 emissions in the case of uncertain energy demands (Bahn et al, 1998). The shadow price or resource constraint represents the value of one additional resource unit, or the marginal cost.…”

Operations risk management by optimally planning the qualified workforce capacity

“…The shadow price in the context of stochastic programming to produce a uniform CO 2 tax was first applied in a result analysis by Bahn et al in [3].…”