The incidence of fuel taxation in India
AbstractFuel taxes have returned to centre stage as a potential policy instrument for greenhouse gas abatement. However critics have complained that a fuel tax is regressive. Such claims are based on few studies conducted in developed countries. This paper tests the validity of this claim for India. It uses data from a representative household survey covering more than 124 thousand Indian households. The study finds that a fuel tax is progressive. Using an input-output approach, this paper tries to study the distributional effect, once price change in non fuel goods (arising out of fuel tax) is considered. The progressivity result holds good even when one considers indirect consumption of fuel through its use as an intermediate input.
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 InfoPaper provided by Indian Statistical Institute, New Delhi, India in its series Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers with number 08-05.
Length: 45 pages
Date of creation: Mar 2008
Date of revision:
carbon emission; tax burden; regressivity;
Find related papers by JEL classification:
- Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
- Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Costs; Distributional Effects; Employment Effects
- Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- James M. Poterba, 1991.
"Is the Gasoline Tax Regressive?,"
NBER Working Papers
3578, National Bureau of Economic Research, Inc.
- Kangni Kpodar, 2011.
"Impact de l'accroissement du prix des produits pétroliers sur la distribution des revenus au Mali,"
- Kangni Kpodar & Calvin Djiofack, 2010. "The Distributional Effects of Oil Price Changes on Household Income: Evidence from Mali," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 19(2), pages 205-236, March.
- Kangni Kpodar, 2006. "Distributional Effects of Oil Price Changeson Household Expenditures," IMF Working Papers 06/91, International Monetary Fund.
- Kangni KPODAR, 2007. "Impact de l’accroissement du prix des produits pétroliers sur la distribution des revenus au Mali," Working Papers 200701, CERDI.
- Ramanathan, R., 1999. "Short- and long-run elasticities of gasoline demand in India: An empirical analysis using cointegration techniques," Energy Economics, Elsevier, vol. 21(4), pages 321-330, August.
- West, Sarah E., 2004. "Distributional effects of alternative vehicle pollution control policies," Journal of Public Economics, Elsevier, vol. 88(3-4), pages 735-757, March.
- West, Sarah E. & Williams, R.C.Roberton III, 2004.
"Estimates from a consumer demand system: implications for the incidence of environmental taxes,"
Journal of Environmental Economics and Management,
Elsevier, vol. 47(3), pages 535-558, May.
- Sarah E. West & Roberton C. Williams III, 2002. "Estimates from a Consumer Demand System: Implications for the Incidence of Environmental Taxes," NBER Working Papers 9152, National Bureau of Economic Research, Inc.
- Gupta, Gautam & Kohlin, Gunnar, 2006. "Preferences for domestic fuel: Analysis with socio-economic factors and rankings in Kolkata, India," Ecological Economics, Elsevier, vol. 57(1), pages 107-121, April.
- Gangopadhyay, Shubhashis & Ramaswami, Bharat & Wadhwa, Wilima, 2005. "Reducing subsidies on household fuels in India: how will it affect the poor?," Energy Policy, Elsevier, vol. 33(18), pages 2326-2336, December.
- Steininger, Karl W. & Friedl, Birgit & Gebetsroither, Brigitte, 2007. "Sustainability impacts of car road pricing: A computable general equilibrium analysis for Austria," Ecological Economics, Elsevier, vol. 63(1), pages 59-69, June.
- Gundimeda, Haripriya & Kohlin, Gunnar, 2008. "Fuel demand elasticities for energy and environmental policies: Indian sample survey evidence," Energy Economics, Elsevier, vol. 30(2), pages 517-546, March.
- Blackman, Allen & Osakwe, Rebecca & Alpizar, Francisco, 2010.
"Fuel tax incidence in developing countries: The case of Costa Rica,"
Elsevier, vol. 38(5), pages 2208-2215, May.
- Blackman, Allen & Osakwe, Rebecca & Alpizar, Francisco, 2009. "Fuel Tax Incidence in Developing Countries: The Case of Costa Rica," Discussion Papers dp-09-37, Resources For the Future.
- Blackman, Allen & Osakwe, Rebecca & Alpizar, Francisco, 2009. "Fuel Tax Incidence in Developing Countries: The Case of Costa Rica," Discussion Papers dp-09-24-efd, Resources For the Future.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamprasad M. Pujar).
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.