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Carbon Taxation, Prices and Welfare in New Zealand

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  • 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.
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. John Creedy & Catherine Sleeman, 2005. "Carbon Dioxide Emissions Reductions In New Zealand: A Minimum Disruption Approach ," Australian Economic Papers, Wiley Blackwell, vol. 44(3), pages 199-220, September.
    2. Jian Wang & Libing Chi & Xiaowei Hu & Hongfei Zhou, 2014. "Urban Traffic Congestion Pricing Model with the Consideration of Carbon Emissions Cost," Sustainability, MDPI, Open Access Journal, vol. 6(2), pages 1-16, February.
    3. Araar, Abdelkrim & Dissou, Yazid & Duclos, Jean-Yves, 2011. "Household incidence of pollution control policies: A robust welfare analysis using general equilibrium effects," Journal of Environmental Economics and Management, Elsevier, vol. 61(2), pages 227-243, March.
    4. Qian Wang & Qiao-Mei Liang, 2015. "Will a carbon tax hinder China’s efforts to improve its primary income distribution status?," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 20(8), pages 1407-1436, December.
    5. Nicolas Gonne, 2010. "Short-Term Price Effects of a Carbon Tax and Implications for Sectors Competitiveness in Small Open Economies," CESifo Working Paper Series 3257, CESifo Group Munich.
    6. Isabelle Sin & Emma Brunton & Joanna Hendy & Suzi Kerr, 2005. "The likely regional impacts of an agricultural emissions policy in New Zealand: Preliminary analysis," Others 0509010, EconWPA.
    7. Ahmad, Ehtisham & Stern, Nicholas, 2009. "Effective carbon taxes and public policy options: insights from India and Pakistan," LSE Research Online Documents on Economics 38348, London School of Economics and Political Science, LSE Library.
    8. John Freebairn, 2010. "Carbon Taxes vs Tradable Permits: Efficiency and Equity Effects for a Small Open Economy," Chapters,in: Tax Reform in Open Economies, chapter 10 Edward Elgar Publishing.
    9. Gemechu, E.D. & Butnar, I. & Llop, M. & Castells, F., 2012. "Environmental tax on products and services based on their carbon footprint: A case study of the pulp and paper sector," Energy Policy, Elsevier, vol. 50(C), pages 336-344.
    10. Creedy, John & Sleeman, Catherine, 2006. "Carbon taxation, prices and welfare in New Zealand," Ecological Economics, Elsevier, vol. 57(3), pages 333-345, May.
    11. Kim, Wook & Chattopadhyay, Deb & Park, Jong-bae, 2010. "Impact of carbon cost on wholesale electricity price: A note on price pass-through issues," Energy, Elsevier, vol. 35(8), pages 3441-3448.
    12. 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.
    13. Corey Allan & Suzi Kerr & Campbell Will, 2015. "Are we turning a brighter shade of green? The relationship between household characteristics and greenhouse gas emissions from consumption in New Zealand," Working Papers 15_06, Motu Economic and Public Policy Research.
    14. Jinghua Zhang & Wenzhen Zhang, 2013. "Will Carbon Tax Yield Employment Double Dividend for China?," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 3(4), pages 124-131, April.
    15. Canning, Patrick & Rehkamp, Sarah, 2016. "The Effects of a CO2 Emissions Tax on American Diets," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235928, Agricultural and Applied Economics Association.
    16. John Freebairn, 2008. "Some Sectoral and Global Distributional Issues in Greenhouse Gas Policy Design," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 15(1), pages 13-28.
    17. Wang, Qian & Hubacek, Klaus & Feng, Kuishuang & Wei, Yi-Ming & Liang, Qiao-Mei, 2016. "Distributional effects of carbon taxation," Applied Energy, Elsevier, vol. 184(C), pages 1123-1131.
    18. Qiao-Mei Liang & Qian Wang & Yi-Ming Wei, 2013. "Assessing the Distributional Impacts of Carbon Tax among Households across Different Income Groups: The Case of China," Energy & Environment, , vol. 24(7-8), pages 1323-1346, December.
    19. Pothen, Frank & Tovar Reanos, Miguel Angel, 2018. "The Distribution of Material Footprints in Germany," Hannover Economic Papers (HEP) dp-627, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    20. Freebairn, John W., 2008. "Some Distributional Issues in Greenhouse Gas Policy Design," 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia 6770, Australian Agricultural and Resource Economics Society.

    More about this item

    Keywords

    Carbon tax; equivalent variations; excess burdens; inequality;

    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

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