IDEAS home Printed from https://ideas.repec.org/a/spr/climat/v176y2023i12d10.1007_s10584-023-03608-y.html
   My bibliography  Save this article

Policy diffusion and the interdependent fuel taxes

Author

Listed:
  • Muzhou Zhang

    (University of Essex)

Abstract

Fossil fuels remain undertaxed worldwide despite the accelerating threat of climate change. While subscribing to the existing literature on that domestic politics matters, I contend that policy diffusion is yet another mechanism here: risk-averse policy makers carefully follow their counterparts abroad, so incrementalism in taxing fossil fuels is self-perpetuating transnationally. Using data from 29 OECD countries, 1990–2019, various spatial econometric analyses lend support to my argument: the excise tax on gasoline in one country positively correlates to that in other countries, with this interdependence being more pronounced between geographic or linguistic “neighbors” and trade or political partners. Substantively, a gasoline tax cut by one unit in a single country could spread over 60% of its negative effect elsewhere. This Letter concludes with its contribution to the literature, possible avenues for future research, as well as important policy implications.

Suggested Citation

  • Muzhou Zhang, 2023. "Policy diffusion and the interdependent fuel taxes," Climatic Change, Springer, vol. 176(12), pages 1-8, December.
    • Handle: RePEc:spr:climat:v:176:y:2023:i:12:d:10.1007_s10584-023-03608-y
    DOI: 10.1007/s10584-023-03608-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10584-023-03608-y
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10584-023-03608-y?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    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:spr:climat:v:176:y:2023:i:12:d:10.1007_s10584-023-03608-y. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.