This paper considers the distributional effects of imposing additional excise duties on energy products according to carbon content. The assumed duties escalate from 1999 to 2010 and achieve levels reducing CO2 emissions by 10 per cent below baseline by 2010 for 11 EU member states. By 2010, real personal disposable incomes are 1.6 per cent above baseline and employment is 1.2 per cent above, assuming that the change is tax-revenue-neutral. The study concludes that the changes will be weakly regressive for nearly all the member states in the study if revenues are used to reduce employers’ taxes and strongly progressive if they are given back lump-sum to households.
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Article provided by Institute for Fiscal Studies in its journal Fiscal Studies.
Volume (Year): 19 (1998) Issue (Month): 4 (November) Pages: 375-402 Download reference. The following formats are available: HTML
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Find related papers by JEL classification: C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Other Model Applications D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
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