IDEAS home Printed from https://ideas.repec.org/p/mlb/wpaper/937.html
   My bibliography  Save this paper

Carbon Taxation, Prices and Welfare in New Zealand

Author

Listed:
  • John Creedy
  • Catherine Sleeman

Abstract

This paper examines the effects on consumer prices arising from imposing a carbon tax in New Zealand, using information about inter-industry transactions and the use of fossil fuels by industries. The welfare effects of the carbon tax are examined for a range of different household types. Finally, overall measures of inequality are reported.

Suggested Citation

  • John Creedy & Catherine Sleeman, 2005. "Carbon Taxation, Prices and Welfare in New Zealand," Department of Economics - Working Papers Series 937, The University of Melbourne.
  • Handle: RePEc:mlb:wpaper:937
    Note: This paper has now been published in: Creedy, J. and Sleeman, C. (2006) Carbon Taxation, Prices and Welfare in New Zealand, Ecological Economics, 57, pp. 333-345.
    as

    Download full text from publisher

    File URL: http://www.economics.unimelb.edu.au/downloads/wpapers-05/937.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Cornwell, Antonia & Creedy, John, 1997. "Measuring the Welfare Effects of Tax Changes Using the LES: An Application to a Carbon Tax," Empirical Economics, Springer, vol. 22(4), pages 589-613.
    2. Antonie Cornwell & John Creedy, 1995. "A Carbon Tax For Australia," Economic Papers, The Economic Society of Australia, vol. 14(4), pages 16-28, December.
    3. Brannlund, Runar & Nordstrom, Jonas, 2004. "Carbon tax simulations using a household demand model," European Economic Review, Elsevier, vol. 48(1), pages 211-233, February.
    4. Antonia Cornwell & John Creedy, 1997. "environmental taxes and economic welfare," Books, Edward Elgar Publishing, number 1304.
    5. Fortin, Bernard & Truchon, Michel & Beausejour, Louis, 1993. "On reforming the welfare system : Workfare meets the negative income tax," Journal of Public Economics, Elsevier, vol. 51(2), pages 119-151, June.
    6. R. G. D. Allen, 1975. "Index Numbers in Theory and Practice," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-02312-7.
    7. Smith, Stephen, 1998. "Environmental and Public Finance Aspects of the Taxation of Energy," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 14(4), pages 64-83, Winter.
    8. Roberts, Kevin, 1980. "Price-Independent Welfare Prescriptions," Empirical Economics, Springer, vol. 13(3), pages 277-297, June.
    9. John Creedy & Cameron Martin, 1999. "How Large Are Australia'S Greenhouse Gas Emissions?," Economic Papers, The Economic Society of Australia, vol. 18(1), pages 53-62, March.
    10. Véronique Nichèle & J.M. Robin, 1995. "Simulation of indirect tax reforms using pooled micro and macro French data [Evaluation des effets budgétaires et redistributifs de réformes de la fiscalité indirecte française]," Post-Print hal-02699381, HAL.
    11. M. S. Common & U. Salma, 1992. "Accounting for Australian Carbon Dioxide Emissions," The Economic Record, The Economic Society of Australia, vol. 68(1), pages 31-42, March.
    12. John Creedy, 1998. "Measuring the Welfare Effects of Price Changes: A Convenient Parametric Approach," Australian Economic Papers, Wiley Blackwell, vol. 37(2), pages 137-151, June.
    13. Creedy, John & Sleeman, Catherine, 2006. "Carbon taxation, prices and welfare in New Zealand," Ecological Economics, Elsevier, vol. 57(3), pages 333-345, May.
    14. King, Mervyn A., 1983. "Welfare analysis of tax reforms using household data," Journal of Public Economics, Elsevier, vol. 21(2), pages 183-214, July.
    15. Antonia Cornwell & John Creedy, 1996. "Carbon taxation, prices and inequality in Australia," Fiscal Studies, Institute for Fiscal Studies, vol. 17(3), pages 21-38, August.
    16. Xavier Labandeira & José M. Labeaga, 1999. "Combining input-output analysis and micro-simulation to assess the effects of carbon taxation on Spanish households," Fiscal Studies, Institute for Fiscal Studies, vol. 20(3), pages 305-320, September.
    17. Nichele, Veronique & Robin, Jean-Marc, 1995. "Simulation of indirect tax reforms using pooled micro and macro French data," Journal of Public Economics, Elsevier, vol. 56(2), pages 225-244, February.
    18. Ross McKitrick, 1997. "Double Dividend Environmental Taxation and Canadian Carbon Emissions Control," Canadian Public Policy, University of Toronto Press, vol. 23(4), pages 417-438, December.
    19. Alan Brown & Angus Deaton, 1973. "Models of Consumer Behaviour," Palgrave Macmillan Books,, Palgrave Macmillan.
    20. Felicity Barker, 2002. "Consumption Externalities and the Role of Government: The Case of Alcohol," Treasury Working Paper Series 02/25, New Zealand Treasury.
    21. Creedy, John, 1998. "Measuring the Welfare Effects of Price Changes: A Convenient Parametric Approach," Australian Economic Papers, Wiley Blackwell, vol. 37(2), pages 137-151, June.
    22. Common, M. S. & Salma, U., 1992. "Accounting for changes in Australian carbon dioxide emissions," Energy Economics, Elsevier, vol. 14(3), pages 217-225, July.
    23. Pearce, David W, 1991. "The Role of Carbon Taxes in Adjusting to Global Warming," Economic Journal, Royal Economic Society, vol. 101(407), pages 938-948, July.
    24. Elizabeth Symons & John Proops & Philip Gay, 1994. "Carbon taxes, consumer demand and carbon dioxide emissions: a simulation analysis for the UK," Fiscal Studies, Institute for Fiscal Studies, vol. 15(2), pages 19-43, May.
    25. Carraro, Carlo & Galeotti, Marzio & Gallo, Massimo, 1996. "Environmental taxation and unemployment: Some evidence on the 'double dividend hypothesis' in Europe," Journal of Public Economics, Elsevier, vol. 62(1-2), pages 141-181, October.
    26. John Creedy & Cameron Martin, 2000. "Carbon Taxation, Fuel Substitution and Welfare in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 33(1), pages 32-48, March.
    27. Véronique Nichèle & Jean-Marc Robin, 1995. "Simulation of indirect tax reforms using pooled micro and macro French data," Post-Print hal-03587618, HAL.
    28. Jenkins, Stephen P & Cowell, Frank A, 1994. "Parametric Equivalence Scales and Scale Relativities," Economic Journal, Royal Economic Society, vol. 104(425), pages 891-900, July.
    29. Yoram Amiel & John Creedy & Stan Hurn, 1999. "Measuring Attitudes Towards Inequality," Scandinavian Journal of Economics, Wiley Blackwell, vol. 101(1), pages 83-96, March.
    30. Common, M S & Salma, U, 1992. "Accounting for Australian Carbon Dioxide Emissions," The Economic Record, The Economic Society of Australia, vol. 68(200), pages 31-42, March.
    Full references (including those not matched with items on IDEAS)

    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. John Creedy, 2004. "The Effects on New Zealand Households of an Increase in The Petrol Excise Tax," Treasury Working Paper Series 04/01, New Zealand Treasury.
    2. Nils Ohlendorf & Michael Jakob & Jan Christoph Minx & Carsten Schröder & Jan Christoph Steckel, 2018. "Distributional Impacts of Climate Mitigation Policies - a Meta-Analysis," Discussion Papers of DIW Berlin 1776, DIW Berlin, German Institute for Economic Research.
    3. Nils Ohlendorf & Michael Jakob & Jan Christoph Minx & Carsten Schröder & Jan Christoph Steckel, 2021. "Distributional Impacts of Carbon Pricing: A Meta-Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 78(1), pages 1-42, January.
    4. Saelim, Supawan, 2019. "Carbon tax incidence on household consumption: Heterogeneity across socio-economic factors in Thailand," Economic Analysis and Policy, Elsevier, vol. 62(C), pages 159-174.
    5. Jiang, Zhujun & Shao, Shuai, 2014. "Distributional effects of a carbon tax on Chinese households: A case of Shanghai," Energy Policy, Elsevier, vol. 73(C), pages 269-277.
    6. Dorothée Boccanfuso & Antonio Estache & Luc Savard, 2008. "Distributional impact of global warming environmental policies: A survey," Cahiers de recherche 08-14, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    7. John Creedy & Cath Sleeman, 2005. "Excise taxation in New Zealand," New Zealand Economic Papers, Taylor & Francis Journals, vol. 39(1), pages 1-35.
    8. Desiderio Romero-Jordán & José Félix Sanz-Sanz, 2009. "Energy Taxes and Household Compliance with the Kyoto Protocol," Public Finance Review, , vol. 37(2), pages 142-169, March.
    9. Frank Denton & Dean Mountain, 2011. "Taxing a Commodity with and without Revenue Neutrality: A Calibrated Theoretical Consumer Equilibrium Model," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 39(3), pages 261-271, September.
    10. Dorothee Boccanfuso & Antonio Estache & Luc Savard, 2011. "The Intra-country Distributional Impact of Policies to Fight Climate Change: A Survey," Journal of Development Studies, Taylor & Francis Journals, vol. 47(1), pages 97-117.
    11. Alberto Gago & Xavier Labandeira & Xiral López Otero, 2014. "A Panorama on Energy Taxes and Green Tax Reforms," Hacienda Pública Española / Review of Public Economics, IEF, vol. 208(1), pages 145-190, March.
    12. Claudia Kettner-Marx & Daniela Kletzan-Slamanig, 2018. "Carbon Taxes from an Economic Perspective," WIFO Working Papers 554, WIFO.
    13. Emilio Padilla & Jordi Roca, 2002. "The proposals for a European tax on CO2 and their implications for intercountry," Working Papers wp0201, Department of Applied Economics at Universitat Autonoma of Barcelona.
    14. Christoph Böhringer, Florian Landis, and Miguel Angel Tovar Reaños, 2017. "Economic Impacts of Renewable Energy Production in Germany," The Energy Journal, International Association for Energy Economics, vol. 0(KAPSARC S).
    15. Xavier Labandeira & José M. Labeaga & Miguel Rodríguez, "undated". "Microsimulating the Effects of Household Energy Price Changes in Spain," Studies on the Spanish Economy 196, FEDEA.
    16. Heindl, Peter & Löschel, Andreas, 2015. "Social implications of green growth policies from the perspective of energy sector reform and its impact on households," ZEW Discussion Papers 15-012, ZEW - Leibniz Centre for European Economic Research.
    17. Emilio Padilla & Jordi Roca, 2004. "The Proposals for a European Tax on CO 2 and Their Implications for Intercountry Distribution," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 27(3), pages 273-295, March.
    18. Lennox, James A. & Andrew, Robbie & Forgie, V., 2008. "Price effects of an emissions trading scheme in New Zealand," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6678, European Association of Agricultural Economists.
    19. Romero-Jordán, Desiderio & del Río, Pablo & Jorge-García, Marta & Burguillo, Mercedes, 2010. "Price and income elasticities of demand for passenger transport fuels in Spain. Implications for public policies," Energy Policy, Elsevier, vol. 38(8), pages 3898-3909, August.
    20. Common, Mick S., 1992. "Taxation and Sustainability," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 60(02), pages 1-13, August.

    More about this item

    Keywords

    Carbon tax; equivalent variations; excess burdens; inequality;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:mlb:wpaper:937. 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: Dandapani Lokanathan (email available below). General contact details of provider: https://edirc.repec.org/data/demelau.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.