IDEAS home Printed from https://ideas.repec.org/p/zbw/zewdip/889.html
   My bibliography  Save this paper

Environmental tax differentiation between industries and households - implications for efficiency and employment: a multi-sector intertemporal CGE analysis for Germany

Author

Listed:
  • Böhringer, Christoph

Abstract

This paper investigates the economic impacts of environmental tax reforms designed to reach given emission reduction targets for the German economy. Our focus is on the efficiency and employment implications of alternative schemes for emission tax differentiation between the production sector and the household sector. We point out that strong tax discrimination in favor of the production sector may cause substantial excess costs. Differences in the emission tax base and the respective ease of emission mitigation across the production sector and the household sector are shown to play a crucial role for explaining our results.

Suggested Citation

  • Böhringer, Christoph, 2002. "Environmental tax differentiation between industries and households - implications for efficiency and employment: a multi-sector intertemporal CGE analysis for Germany," ZEW Discussion Papers 02-08, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:889
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/24798/1/dp0208.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Erkki Koskela & Ronnie Schöb, 2002. "Alleviating Unemployment: The Case for Green Tax Reforms," Chapters, in: Lawrence H. Goulder (ed.), Environmental Policy Making in Economies with Prior Tax Distortions, chapter 20, pages 355-378, Edward Elgar Publishing.
    2. Bohringer, Christoph & Rutherford, Thomas F., 1997. "Carbon Taxes with Exemptions in an Open Economy: A General Equilibrium Analysis of the German Tax Initiative," Journal of Environmental Economics and Management, Elsevier, vol. 32(2), pages 189-203, February.
    3. Alan Manne & Richard Richels, 1992. "Buying Greenhouse Insurance: The Economic Costs of CO2 Emission Limits," MIT Press Books, The MIT Press, edition 1, volume 1, number 026213280x, December.
    4. Edmond S. Phelps, 1962. "Substitution, Fixed Proportions, Growth and Distribution," Cowles Foundation Discussion Papers 133, Cowles Foundation for Research in Economics, Yale University.
    5. Felder Stefan & Rutherford Thomas F., 1993. "Unilateral CO2 Reductions and Carbon Leakage: The Consequences of International Trade in Oil and Basic Materials," Journal of Environmental Economics and Management, Elsevier, vol. 25(2), pages 162-176, September.
    6. John Hutton & Anna Ruocco, 1999. "Tax Reform and Employment in Europe," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 6(3), pages 263-287, August.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Gerda Dewit & Dermot Leahy, 2015. "Tax Uniformity: A Commitment Device for Restraining Opportunistic Behavior," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 17(5), pages 641-672, October.
    2. Dannenberg, Astrid & Mennel, Tim & Moslener, Ulf, 2008. "What does Europe pay for clean energy?--Review of macroeconomic simulation studies," Energy Policy, Elsevier, vol. 36(4), pages 1318-1330, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Böhringer, Christoph & Lange, Andreas & Rutherford, Thomas F., 2014. "Optimal emission pricing in the presence of international spillovers: Decomposing leakage and terms-of-trade motives," Journal of Public Economics, Elsevier, vol. 110(C), pages 101-111.
    2. Christoph Böhringer & Andreas Löschel & Heinz Welsch, 2008. "Environmental Taxation and Induced Structural Change in an Open Economy: The Role of Market Structure," German Economic Review, Verein für Socialpolitik, vol. 9(1), pages 17-40, February.
    3. Markandya, Anil & González-Eguino, Mikel & Escapa, Marta, 2013. "From shadow to green: Linking environmental fiscal reforms and the informal economy," Energy Economics, Elsevier, vol. 40(S1), pages 108-118.
    4. Bovenberg, A. Lans & Goulder, Lawrence H., 2002. "Environmental taxation and regulation," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 3, chapter 23, pages 1471-1545, Elsevier.
    5. Wiepke Wissema & Rob Dellink, 2010. "AGE assessment of interactions between climate change policy instruments and pre-existing taxes: the case of Ireland," International Journal of Global Environmental Issues, Inderscience Enterprises Ltd, vol. 10(1/2), pages 46-62.
    6. Hammitt, James K. & Adams, John L., 1996. "The value of international cooperation for abating global climate change," Resource and Energy Economics, Elsevier, vol. 18(3), pages 219-241, October.
    7. Haixiao Huang, Walter C. Labys, 2002. "Environment and trade: a review of issues and methods," International Journal of Global Environmental Issues, Inderscience Enterprises Ltd, vol. 2(1/2), pages 100-160.
    8. Zhang, Zhong Xiang, 2012. "Competitiveness and Leakage Concerns and Border Carbon Adjustments," International Review of Environmental and Resource Economics, now publishers, vol. 6(3), pages 225-287, December.
    9. Christoph Böhringer & Klaus Conrad & Andreas Löschel, 2003. "Carbon Taxes and Joint Implementation. An Applied General Equilibrium Analysis for Germany and India," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 24(1), pages 49-76, January.
    10. Christoph Böhringer & Andreas Löschel & Heinz Welsch, 2008. "Environmental Taxation and Induced Structural Change in an Open Economy: The Role of Market Structure," German Economic Review, Verein für Socialpolitik, vol. 9(1), pages 17-40, February.
    11. Goulder, Lawrence H. & Schneider, Stephen H., 1999. "Induced technological change and the attractiveness of CO2 abatement policies," Resource and Energy Economics, Elsevier, vol. 21(3-4), pages 211-253, August.
    12. Zhang, ZhongXiang & Baranzini, Andrea, 2004. "What do we know about carbon taxes? An inquiry into their impacts on competitiveness and distribution of income," Energy Policy, Elsevier, vol. 32(4), pages 507-518, March.
    13. Conrad, Klaus, 2001. "Computable General equilibrium Models in Environmental and Resource Economics," Discussion Papers 601, Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre.
    14. Stephan, Gunter & Imboden, Damian, 1995. "Laissez-faire, Kooperation oder Alleingang: Klimapolitik in der Schweiz," Discussion Papers, Series II 259, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
    15. Rivers, Nic, 2010. "Impacts of climate policy on the competitiveness of Canadian industry: How big and how to mitigate?," Energy Economics, Elsevier, vol. 32(5), pages 1092-1104, September.
    16. P.G.C. Mensink, 2000. "Emulating a Long-Term Energy Scenario with the MERGE2 Model," Working Papers ir00029, International Institute for Applied Systems Analysis.
    17. Finnoff, David & Tschirhart, John, 2008. "Linking dynamic economic and ecological general equilibrium models," Resource and Energy Economics, Elsevier, vol. 30(2), pages 91-114, May.
    18. Böhringer, Christoph & Ruocco, Anna & Wiegard, Wolfgang, 2001. "Energy taxes and employment: a do-it-yourself simulation model," ZEW Discussion Papers 01-21, ZEW - Leibniz Centre for European Economic Research.
    19. Christoph Böhringer & Wolfgang Wiegard & Collin Starkweather & Anna Ruocco, 2003. "Green Tax Reforms and Computational Economics A Do-it-yourself Approach," Computational Economics, Springer;Society for Computational Economics, vol. 22(1), pages 75-109, August.
    20. Böhringer, Christoph & Garcia-Muros, Xaquin & Gonzalez-Eguino, Mikel & Rey, Luis, 2017. "US climate policy: A critical assessment of intensity standards," Energy Economics, Elsevier, vol. 68(S1), pages 125-135.

    More about this item

    Keywords

    environmental taxes; taxing production vs. taxing consumption; environmental tax reforms; computable general equilibrium;
    All these keywords.

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

    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:zbw:zewdip:889. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc 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 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: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/zemande.html .

    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.