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Input-output analysis of alternative policies implemented on the energy activities: An application for Catalonia

  • Llop, Maria
  • Pié, Laia

The aim of this paper is to analyze the economic impact of alternative policies implemented on the energy activities of the Catalan production system. Specifically, we analyze the effects of a tax on intermediate energy uses, a reduction in intermediate energy demand, and a tax on intermediate uses combined with a reduction in intermediate energy demand. The methodology involves two versions of the input-output price model: a competitive price formulation and a mark-up price formulation. The input-output price framework will make it possible to evaluate how the alternative measures modify production prices, consumption prices, private real income, and intermediate energy uses. The empirical application is for the Catalan economy and uses economic data for the year 2001. The combination of a tax on energy uses and an improvement in the energy efficiency of the production system is a measure that accomplishes both economic and environmental goals, since it has no effects on prices, it has a positive effect on private real income and, finally, energy consumption is considerably reduced.

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Article provided by Elsevier in its journal Energy Policy.

Volume (Year): 36 (2008)
Issue (Month): 5 (May)
Pages: 1642-1648

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Handle: RePEc:eee:enepol:v:36:y:2008:i:5:p:1642-1648
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  1. Llop Llop, Maria, 2006. "Economic impacts of alternative water policy scenarios in the Spanish production system: an input-output analysis," Working Papers 2072/3681, Universitat Rovira i Virgili, Department of Economics.
  2. Alcantara, Vicent & Roca, Jordi, 1995. "Energy and CO2 emissions in Spain : Methodology of analysis and some results for 1980-1990," Energy Economics, Elsevier, vol. 17(3), pages 221-230, July.
  3. Antonio Morillas & Elías Melchor & J Marcos Castro, 2005. "Análisis dinámico de los efectos de la estructura de demanda sobre crecimiento y medio ambiente en Andalucía," Urban/Regional 0512003, EconWPA.
  4. Hawdon, David & Pearson, Peter, 1995. "Input-output simulations of energy, environment, economy interactions in the UK," Energy Economics, Elsevier, vol. 17(1), pages 73-86, January.
  5. Forsund, Finn R., 1985. "Input-output models, national economic models, and the environment," Handbook of Natural Resource and Energy Economics, in: A. V. Kneese† & J. L. Sweeney (ed.), Handbook of Natural Resource and Energy Economics, edition 1, volume 1, chapter 8, pages 325-341 Elsevier.
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