IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/13554.html
   My bibliography  Save this paper

The Incidence of a U.S. Carbon Tax: A Lifetime and Regional Analysis

Author

Listed:
  • Kevin A. Hassett
  • Aparna Mathur
  • Gilbert E. Metcalf

Abstract

This paper measures the direct and indirect incidence of a carbon tax using current income and two measures of lifetime income to rank households. Our results suggest that carbon taxes are more regressive when annual income is used as a measure of economic welfare than when proxies for lifetime income are used. Further, the direct component of the tax, in any given year, is significantly more regressive than the indirect component. In fact, for 1987, the indirect component of the tax is mildly progressive. We observe a modest shift over time with the direct component of carbon taxes becoming less regressive and the indirect component becoming more regressive. These effects mostly offset each other and the distribution of the total tax burden has not changed much over time. In addition we find that regional variation has fluctuated over the years of our anlaysis. By 2003 there is little systematic variation in carbon tax burdens across regions of the country.

Suggested Citation

  • Kevin A. Hassett & Aparna Mathur & Gilbert E. Metcalf, 2007. "The Incidence of a U.S. Carbon Tax: A Lifetime and Regional Analysis," NBER Working Papers 13554, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:13554
    Note: EEE PE
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w13554.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Gilbert E. Metcalf, 2008. "An Empirical Analysis of Energy Intensity and Its Determinants at the State Level," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 1-26.
    2. S. Paltsev & J. Reilly & H. Jacoby & A. Gurgel & G. Metcalf & A. Sokolov & J. Holak, 2007. "Assessment of U.S. Cap-and-Trade Proposals," Working Papers 0705, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
    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. Löschel, Andreas & Pothen, Frank & Schymura, Michael, 2015. "Peeling the onion: Analyzing aggregate, national and sectoral energy intensity in the European Union," Energy Economics, Elsevier, vol. 52(S1), pages 63-75.
    2. Arik Levinson, 2017. "Energy Intensity: Prices, Policy, or Composition in US States," Working Papers gueconwpa~17-17-04, Georgetown University, Department of Economics.
    3. Ma, Chunbo, 2014. "A multi-fuel, multi-sector and multi-region approach to index decomposition: An application to China's energy consumption 1995–2010," Energy Economics, Elsevier, vol. 42(C), pages 9-16.
    4. Joanne Evans & Massimo Filippini & Lester C Hunt, 2011. "Measuring energy efficiency and its contribution towards meeting CO2 targets: estimates for 29 OECD countries," Surrey Energy Economics Centre (SEEC), School of Economics Discussion Papers (SEEDS) 135, Surrey Energy Economics Centre (SEEC), School of Economics, University of Surrey.
    5. Massimo Filippini & Lester C. Hunt, 2013. "'Underlying Energy Efficiency' in the US," CER-ETH Economics working paper series 13/181, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    6. Last Name, First Name, 2009. "Distributional Impacts of Carbon Pricing Policies in the Electricity Sector," Discussion Papers dp-09-43, Resources For the Future.
    7. De Cian, Enrica & Tavoni, Massimo, 2012. "Do technology externalities justify restrictions on emission permit trading?," Resource and Energy Economics, Elsevier, vol. 34(4), pages 624-646.
    8. den Elzen, Michel & Höhne, Niklas & van Vliet, Jasper, 2009. "Analysing comparable greenhouse gas mitigation efforts for Annex I countries," Energy Policy, Elsevier, vol. 37(10), pages 4114-4131, October.
    9. Shao, Shuai & Yang, Lili & Yu, Mingbo & Yu, Mingliang, 2011. "Estimation, characteristics, and determinants of energy-related industrial CO2 emissions in Shanghai (China), 1994-2009," Energy Policy, Elsevier, vol. 39(10), pages 6476-6494, October.
    10. Jin, Taeyoung, 2022. "Impact of heat and electricity consumption on energy intensity: A panel data analysis," Energy, Elsevier, vol. 239(PA).
    11. Danae Hernandez-Cortes & Kyle C. Meng & Paige E. Weber, 2022. "Decomposing Trends in US Air Pollution: Disparities from Electricity," NBER Chapters, in: Environmental and Energy Policy and the Economy, volume 4, National Bureau of Economic Research, Inc.
    12. Díaz Antonia & Puch Luis A., 2019. "Investment, technological progress and energy efficiency," The B.E. Journal of Macroeconomics, De Gruyter, vol. 19(2), pages 1-28, June.
    13. Tol, Richard S.J. & Pacala, Stephen W. & Socolow, Robert H., 2009. "Understanding Long-Term Energy Use and Carbon Dioxide Emissions in the USA," Journal of Policy Modeling, Elsevier, vol. 31(3), pages 425-445, May.
    14. Inglesi-Lotz, R. & Pouris, A., 2012. "Energy efficiency in South Africa: A decomposition exercise," Energy, Elsevier, vol. 42(1), pages 113-120.
    15. Flavio R. Arroyo M. & Luis J. Miguel, 2019. "The Trends of the Energy Intensity and CO 2 Emissions Related to Final Energy Consumption in Ecuador: Scenarios of National and Worldwide Strategies," Sustainability, MDPI, vol. 12(1), pages 1-21, December.
    16. Zhang, Fan, 2013. "The energy transition of the transition economies: An empirical analysis," Energy Economics, Elsevier, vol. 40(C), pages 679-686.
    17. Moslener, Ulf & Sturm, Bodo, 2008. "A European Perspective on Recent Trends in U.S. Climate Policy," ZEW Discussion Papers 08-026, ZEW - Leibniz Centre for European Economic Research.
    18. Claudia Kemfert, 2007. "The "Bali Convention": Flexibility of Targets and Instruments Inevitable," Discussion Papers of DIW Berlin 729, DIW Berlin, German Institute for Economic Research.
    19. Feng, Taiwen & Sun, Linyan & Zhang, Ying, 2009. "The relationship between energy consumption structure, economic structure and energy intensity in China," Energy Policy, Elsevier, vol. 37(12), pages 5475-5483, December.
    20. Minglu Ma & Qiang Wang, 2022. "Assessment and Forecast of Green Total Factor Energy Efficiency in the Yellow River Basin—A Perspective Distinguishing the Upper, Middle and Lower Stream," Sustainability, MDPI, vol. 14(5), pages 1-23, February.

    More about this item

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    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:nbr:nberwo:13554. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/nberrus.html .

    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: (email available below). General contact details of provider: https://edirc.repec.org/data/nberrus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.