The Distributional Impact of Domestic Fuel Taxation
AbstractThis paper attempts to estimate the regressivity and distributional impact of a domestic fuel tax in Australia, in both cross-sectional and life-cycle contexts. The question of whether a tax policy may attempt to compensate for the regressivity of a domestic fuel tax by redistributing the tax revenue in the form of increased transfer payments to those on low incomes is also considered. The paper focuses on 'impact effects' and does not account for behavioral responses. However, special emphasis is placed on lifetime incidence. The results suggest that, compared with a tax on food which is the most regressive of all consumption taxes, the impact effects on income distribution of introducing a tax on domestic fuel are likely to be small. Furthermore, when transfer payments are adjusted to maintain revenue-neutrality, the regressivity is more than compesated. The results hold in both cross-sectional and life-cycle contexts.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Queensland University of Technology (QUT), School of Economics and Finance in its journal Economic Analysis and Policy (EAP).
Volume (Year): 26 (1996)
Issue (Month): 2 (September)
Contact details of provider:
Postal: GPO Box 2434, BRISBANE QLD 4001
Web page: http://www.journals.elsevier.com/economic-analysis-and-policy/
More information through EDIRC
Revenue; Tax; Taxation; Transfer Payments;
Find related papers by JEL classification:
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
- H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Manuela Torgler).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.