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Too Hot to Handle? Benefits and costs of stimulating the use of biofuels in the Swedish Heating Sector

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Author Info

  • Brännlund, Runar

    ()
    (Department of Economics, Umeå University)

  • Kriström, Bengt

    ()
    (Department of Forest Economics)

Abstract

This paper evaluates the impact of changes in current Swedish energy taxation by analyzing a panel of approximately 150 district heating plants in Sweden. We estimate plant-specific production functions and derive the economic repercussions of the tax. We also estimate the resulting changes of emissions of Sulfur, NOx, particulates and CO2 and assess the externality costs. Our results raise the issue of whether or not the Swedish tax system needs to be complemented with additional environmental taxes, covering, say, emissions of particulates. However, because the geographical variation of damages is likely to be substantial, an overall assessment of current regulatory schemes seems preferable. The current system of using both taxes and regulations needs to be re-structured, in particular in the case of global environmental problems.

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Bibliographic Info

Paper provided by Umeå University, Department of Economics in its series Umeå Economic Studies with number 518.

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Length: 21 pages
Date of creation: 01 Nov 1999
Date of revision:
Handle: RePEc:hhs:umnees:0518

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Postal: Department of Economics, Umeå University, S-901 87 Umeå, Sweden
Phone: 090 - 786 61 42
Fax: 090 - 77 23 02
Email:
Web page: http://www.econ.umu.se/
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Related research

Keywords: Energy Taxation; Heating Plants; Panel Data; Externalities;

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References

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  1. Johannesson, Magnus & Johansson, Per-Olov & Löfgren, Karl-Gustaf, 1997. "On the Value of Changes in Life Expectancy: Blips versus Parametric Changes," Working Paper Series in Economics and Finance 152, Stockholm School of Economics.
  2. JAY S. COGGINS & John R. Swinton, 1994. "The Price of Pollution: A Dual Approach to Valuing SO2 Allowances," Wisconsin-Madison Agricultural and Applied Economics Staff Papers, Wisconsin-Madison Agricultural and Applied Economics Department 378, Wisconsin-Madison Agricultural and Applied Economics Department.
  3. George E. Battese, 1997. "A Note On The Estimation Of Cobb-Douglas Production Functions When Some Explanatory Variables Have Zero Values," Journal of Agricultural Economics, Wiley Blackwell, Wiley Blackwell, vol. 48(1-3), pages 250-252.
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Cited by:
  1. Brannlund, Runar & Lundgren, Tommy, 2004. "A dynamic analysis of interfuel substitution for Swedish heating plants," Energy Economics, Elsevier, Elsevier, vol. 26(6), pages 961-976, November.

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