Keywords: carbon tax, carbon dioxide emissions, coal, LCP model, natural gas, linear complementarity, excise taxes, steamcoal, modelling, United States, USA
Impact analysis of carbon taxes on the steamcoal and natural gas market in the eastern United States: a linear complementarity model
The impact of a federal excise tax on Appalachian steamcoal on the consumption and production of steamcoal and natural gas is investigated. To examine the comprehensive effects of such taxes, the linear complementarity model is used to ensure consistent results. Predictions on coal and natural gas prices are also made for useful policy implementations.