IDEAS home Printed from https://ideas.repec.org/a/taf/jenpmg/v66y2023i4p836-860.html
   My bibliography  Save this article

The benefits of action on implementing carbon taxation in Ireland: a demand system approach

Author

Listed:
  • Miguel A. Tovar Reaños
  • Muireann Á. Lynch

Abstract

We employ the Affine Stone Index demand system and Irish data to quantify the distributional effects of additional carbon taxes, taking into account the monetary benefits of action. We estimated the avoided economic damages from climate change, and the monetary value of the avoided emissions using willingness to pay from the literature. When these benefits of action are included in the metric for tax incidence, the tax burden decreases considerably. In addition, when the benefits disproportionately benefit low income households, carbon taxes are no longer regressive. We also analyze a flat and a pro-poor revenue allocation. We found that while these instruments reduce vertical inequalities (i.e. across income levels), they can increase horizontal inequalities (within income levels). We show that these instruments can reduce the environmental savings attributed to the additional carbon tax. However, this problem can be minimized by a partial allocation of additional revenues.

Suggested Citation

  • Miguel A. Tovar Reaños & Muireann Á. Lynch, 2023. "The benefits of action on implementing carbon taxation in Ireland: a demand system approach," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 66(4), pages 836-860, March.
    • Handle: RePEc:taf:jenpmg:v:66:y:2023:i:4:p:836-860
    DOI: 10.1080/09640568.2021.2006157
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/09640568.2021.2006157
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/09640568.2021.2006157?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jules Linden & Cathal O’Donoghue & Denisa M. Sologon, 2023. "Decomposing the distributional impact of carbon taxation across six EU countries - Comparing the role of budget shares, carbon intensity, savings rates, and asset ownership," LISER Working Paper Series 2023-10, Luxembourg Institute of Socio-Economic Research (LISER).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jenpmg:v:66:y:2023:i:4:p:836-860. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CJEP20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.