01794cas a2200277 a 4500 AALejournalIMF014873 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475573688 1018-5941 BD-DhAAL BD-DhAAL Tumen, Semih. Taxing Fossil Fuels under Speculative Storage / Semih Tumen, Deren Unalmis, Ibrahim Unalmis, Filiz Unsal. Washington, D.C. : International Monetary Fund, 2014. 1 online resource (36 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper investigates the mechanisms through which environmental taxes on fossil fuel usage can affect the main macroeconomic variables in the short-run. We concentrate on a particular mechanism: speculative storage. The existence of forward-looking speculators in the model improves the effectiveness of tax policies in reducing fossil fuel usage. Improved policy effectiveness, however, is costly: it drives inflation and interest rates up, while impeding output. Based on this tradeoff, we seek an answer to the question how monetary policy should interact with environmental tax policies in our DSGE model of fossil fuel storage. Mode of access: Internet Unalmis, Deren. Unalmis, Ibrahim. Unsal, Filiz. IMF Working Papers; Working Paper ; No. 2014/228 Full text available on IMF http://elibrary.imf.org/view/journals/001/2014/228/001.2014.issue-228-en.xml IMF e-Library