Environmental Tax on Products and Services Based on Their Carbon Footprint: A Case Study of the Pulp and Paper Sector
AbstractThe main aim of this work is to define an environmental tax on products and services based on their carbon footprint. We examine the relevance of conventional life cycle analysis (LCA) and environmentally extended input-output analysis (EIO) as methodological tools to identify emission intensities of products and services on which the tax is based. The short-term price effects of the tax and the policy implications of considering non-GHG are also analyzed. The results from the specific case study on pulp production show that the environmental tax rate based on the LCA approach (1,8%) is higher than both EIO approaches (0,8% for product and 1,4% for industry approach), but they are comparable. Even though LCA is more product specific and provides detailed analysis, EIO would be the more relevant approach to apply economy wide environmental tax. When the environmental tax considers non-GHG emissions instead of only CO2, sectors such as agriculture, mining of coal and extraction of peat, and food exhibit higher environmental tax and price effects. Therefore, it is worthwhile for policy makers to pay attention on the implication of considering only CO2 tax or GHG emissions tax in order for such a policy measure to be effective and meaningful. Keywords: Environmental tax; Life cycle analysis; Environmental input-output analysis.
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Bibliographic InfoPaper provided by Universitat Rovira i Virgili, Department of Economics in its series Working Papers with number 2072/182644.
Date of creation: 2012
Date of revision:
Medi ambient -- Impostos; Medi ambient -- Anàlisi d'impacte; 33 - Economia;
Other versions of this item:
- Gemechu, E.D. & Butnar, I. & Llop, M. & Castells, F., 2012. "Environmental tax on products and services based on their carbon footprint: A case study of the pulp and paper sector," Energy Policy, Elsevier, vol. 50(C), pages 336-344.
- NEP-AGR-2012-04-10 (Agricultural Economics)
- NEP-ALL-2012-04-10 (All new papers)
- NEP-ENE-2012-04-10 (Energy Economics)
- NEP-ENV-2012-04-10 (Environmental Economics)
- NEP-PBE-2012-04-10 (Public Economics)
- NEP-RES-2012-04-10 (Resource 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.:
- Suh, Sangwon, 2004. "Functions, commodities and environmental impacts in an ecological-economic model," Ecological Economics, Elsevier, vol. 48(4), pages 451-467, April.
- Heijungs, Reinout, 1994. "A generic method for the identification of options for cleaner products," Ecological Economics, Elsevier, vol. 10(1), pages 69-81, May.
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