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b) projection of carbon emissions and carbon taxes

Most countries in the world only tax companies’ direct carbon emissions (Scope 1 and 2). We thus only consider Scope 1 and 2 emissions in our calculations and assume that both grow at the same rate as the country-level emissions in each scenario. NGFS and Oxford Economics provide the country-level carbon taxes per scenario. However, because NGFS projects negative emissions in the near future, we cap the carbon costs paid by companies to zero.

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