Comments on: When Snow Won’t Fall http://www.carbontax.org/blogarchives/2007/02/21/when-snow-wont-fall-2/ Pricing carbon efficiently and equitably Fri, 21 Nov 2008 05:30:37 +0000 http://wordpress.org/?v=2.2.1 By: Bob Arning http://www.carbontax.org/blogarchives/2007/02/21/when-snow-wont-fall-2/#comment-5521 Bob Arning Sun, 15 Jul 2007 22:52:49 +0000 http://www.carbontax.org/blogarchives/2007/02/21/when-snow-wont-fall-2/#comment-5521 "Based on the high price-elasticities for many luxury goods, the tax might be expected to reduce sales of home snowmakers by around a third." Just curious - is this estimate based on a single luxury good increasing in price and selling fewer units, or does it consider the many things that might be increasing in price simultaneously under a carbon tax? It seems that the latter case might result in even fewer sales as people need to pay for more pressing purchases. “Based on the high price-elasticities for many luxury goods, the tax might be expected to reduce sales of home snowmakers by around a third.”

Just curious - is this estimate based on a single luxury good increasing in price and selling fewer units, or does it consider the many things that might be increasing in price simultaneously under a carbon tax? It seems that the latter case might result in even fewer sales as people need to pay for more pressing purchases.

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