Environmental Tax on Products and Services Based on Their Carbon Footprint: A Case Study of the Pulp and Paper Sector

The main aim of this work is to define an environmental tax on products and services based on their carbon footprint. We examine the relevance of conventional life cycle analysis (LCA) and environmentally extended input-output analysis (EIO) as methodological tools to identify emission intensities of products and services on which the tax is based. The short-term price effects of the tax and the policy implications of considering non-GHG are also analyzed. The results from the specific case study on pulp production show that the environmental tax rate based on the LCA approach (1,8%) is higher than both EIO approaches (0,8% for product and 1,4% for industry approach), but they are comparable. Even though LCA is more product specific and provides detailed analysis, EIO would be the more relevant approach to apply economy wide environmental tax. When the environmental tax considers non-GHG emissions instead of only CO2, sectors such as agriculture, mining of coal and extraction of peat, and food exhibit higher environmental tax and price effects. Therefore, it is worthwhile for policy makers to pay attention on the implication of considering only CO2 tax or GHG emissions tax in order for such a policy measure to be effective and meaningful. Keywords: Environmental tax; Life cycle analysis; Environmental input-output analysis.

The generator problem for Z-stable C*-algebras

The generator problem was posed by Kadison in 1967, and it remains open until today. We provide a solution for the class of C*-algebras absorbing the Jiang-Su algebra Z tensorially. More precisely, we show that every unital, separable, Z-stable C*-algebra A is singly generated, which means that there exists an element x є A that is not contained in any proper sub-C*- algebra of A. To give applications of our result, we observe that Z can be embedded into the reduced group C*-algebra of a discrete group that contains a non-cyclic, free subgroup. It follows that certain tensor products with reduced group C*-algebras are singly generated. In particular, C*r (F ∞) ⨂ C*r (F ∞) is singly generated.