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Carbon Taxation, Prices and Welfare in New Zealand

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Abstract

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

Suggested Citation

  • John Creedy & Catherine Sleeman, 2004. "Carbon Taxation, Prices and Welfare in New Zealand," Treasury Working Paper Series 04/23, New Zealand Treasury.
  • Handle: RePEc:nzt:nztwps:04/23
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    File URL: https://treasury.govt.nz/sites/default/files/2007-09/twp04-23.pdf
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    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
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis

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