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Carbon tax: a comparison of the impact in France and the rest of Europe
[Taxe carbone : incidence comparée en France et dans le reste de l’Europe]

Author

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  • Antoine Devulder
  • Noëmie Lisack

Abstract

How would the impact of a European carbon tax on the French economy differ from that in the rest of the EU? The medium-run impact on value added would be 20% lower in France than in the rest of the EU. This divergence would stem more from differences in the sectoral structure of the economy (the weight of those sectors most affected, inter-sectoral flows) than from differences in carbon intensity between homologous sectors. Quel serait l’effet économique d’une taxe carbone européenne en France comparativement au reste de l’UE ? L’impact à moyen terme sur la valeur ajoutée y serait 20% moins fort que dans le reste de l’UE. Cet écart résulterait davantage de différences de structure sectorielle (poids des secteurs les plus touchés, flux intersectoriels) que de différences d’intensité carbone entre secteurs homologues.

Suggested Citation

  • Antoine Devulder & Noëmie Lisack, 2021. "Carbon tax: a comparison of the impact in France and the rest of Europe [Taxe carbone : incidence comparée en France et dans le reste de l’Europe]," Eco Notepad (in progress) 203, Banque de France.
    • Handle: RePEc:bfr:econot:203
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