EU-type carbon emissions trade and the distributional impact of overlapping emissions taxes
AbstractThe European Union fulfills its emissions reductions commitments by means of an emissions trading scheme covering some part of each member state’s economy and by national emissions control in the rest of their economies. The member states also levy energy/emissions taxes overlapping with the trading scheme. Restricting our focus on cost-effective policies, this paper investigates the distributive consequences of increasing the overlapping emissions tax that is uniform across countries. For quasi-linear utility functions and for a class of parametric utility and production functions emissions tax increases turn out to be exactly offset by permit price reductions. As a consequence permit-exporting [permit-importing] countries lose [gain] from an increase in the emissions tax. These results are not general, however. By means of a numerical example we show that export-import reversals and welfare reversals are possible.
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 Universität Siegen, Fakultät Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht in its series Volkswirtschaftliche Diskussionsbeiträge with number 134-09.
Length: 30 pages
Date of creation: 2009
Date of revision:
Contact details of provider:
Postal: Hölderlinstr. 3, D - 57068 Siegen
Phone: ++49 (0)271 740-3139
Fax: ++49 (0)271 740-2590
Web page: http://www.uni-siegen.de/fb5/vwl/research/diskussionsbeitraege/
More information through EDIRC
emissions taxes; emissions trading; international trade;
Other versions of this item:
- Thomas Eichner & Rüdiger Pethig, 2010. "EU-type carbon emissions trade and the distributional impact of overlapping emissions taxes," Journal of Regulatory Economics, Springer, vol. 37(3), pages 287-315, June.
- Thomas Eichner & Rüdiger Pethig, 2009. "EU-Type Carbon Emissions Trade and the Distributional Impact of Overlapping Emissions Taxes," CESifo Working Paper Series 2579, CESifo Group Munich.
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
- H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
- Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-09-05 (All new papers)
- NEP-EEC-2009-09-05 (European Economics)
- NEP-ENE-2009-09-05 (Energy Economics)
- NEP-ENV-2009-09-05 (Environmental Economics)
- NEP-PBE-2009-09-05 (Public Economics)
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.:
- Steven Sorrell, 2003. "Carbon Trading in the Policy Mix," Oxford Review of Economic Policy, Oxford University Press, vol. 19(3), pages 420-437.
- Shiell, Leslie, 2003. "Equity and efficiency in international markets for pollution permits," Journal of Environmental Economics and Management, Elsevier, vol. 46(1), pages 38-51, July.
- Robaina Alves, Margarita & Rodríguez, Miguel & Roseta-Palma, Catarina, 2011.
"Sectoral and regional impacts of the European carbon market in Portugal,"
Elsevier, vol. 39(5), pages 2528-2541, May.
- Margarita Robaina Alves & Miguel Rodríguez & Catarina Roseta-Palma, 2010. "Sectoral and regional impacts of the European Carbon Market in Portugal," GEE Papers 0021, Gabinete de Estratégia e Estudos, Ministério da Economia e da Inovação, revised Jul 2010.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael Gail).
If references are entirely missing, you can add them using this form.