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The distributional implications of a carbon tax in Ireland

  • Callan, Tim
  • Lyons, Sean
  • Scott, Susan
  • Tol, Richard S.J.
  • Verde, Stefano

We study the effects of carbon tax and revenue recycling across the income distribution in the Republic of Ireland. In absolute terms, a carbon tax of [euro]20/tCO2 would cost the poorest households less than [euro]3/week and the richest households more than [euro]4/week. A carbon tax is regressive, therefore. However, if the tax revenue is used to increase social benefits and tax credits, households across the income distribution can be made better off without exhausting the total carbon tax revenue.

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Article provided by Elsevier in its journal Energy Policy.

Volume (Year): 37 (2009)
Issue (Month): 2 (February)
Pages: 407-412

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Handle: RePEc:eee:enepol:v:37:y:2009:i:2:p:407-412
Contact details of provider: Web page: http://www.elsevier.com/locate/enpol

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