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Energy Prices, Taxes and Carbon Dioxide Emissions


  • Peter Hoeller


  • Markku Wallin



Taxes levied on the carbon content of fuels (carbon taxes) are being considered in many OECD countries as a possible policy instrument to reduce carbon dioxide emissions. This paper first reviews the policy response in Member countries to the threat of global warming. It then discusses the link between carbon emission intensities and current energy prices, touching also on the relative price effects of current energy policies and the implicit carbon taxes reflected in present energy taxation for different fuels. Finally, the likely size of carbon taxes and associated tax revenue is illustrated by simulations of OECD's GREEN model for equiproportionate emission cuts and a global permit trading system ... Dans la plupart des pays de l'OCDE on-considère les taxes perçues sur les combustibles en fonction de leur teneur en carbone (les taxes sur le carbone) comme un des moyens de réduire les émissions de dioxyde de carbone. Ce document passe en revue les réactions de politique économique des pays Membres face à la menace d'un réchauffement planétaire. Il étudie ensuite le lien entre les prix courants de l'énergie et l'intensité des émissions de carbone ainsi que les effets des politiques énergétiques sur les prix relatifs. Les effets de prix relatifs sont mis en évidence en calculant des taxes implicites sur le carbone qui reflètent le système actuel de taxation de l'énergie pour différents combustibles, Enfin le montant probable des taxes sur le carbone et des taxes sur le revenu qui y sont associées est illustré par des simulations du modèle GREEN de l'OCDE concernant des réductions équiproportionnelles d'émissions et un système global d'échanges de droits d'émissions ...

Suggested Citation

  • Peter Hoeller & Markku Wallin, 1991. "Energy Prices, Taxes and Carbon Dioxide Emissions," OECD Economics Department Working Papers 106, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:106-en

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    References listed on IDEAS

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    Cited by:

    1. Steenblik, Ronald P & Coroyannakis, Panos, 1995. "Reform of coal policies in Western and Central Europe : Implications for the environment," Energy Policy, Elsevier, vol. 23(6), pages 537-553, June.
    2. Pope, Jeff & Owen, Anthony D., 2009. "Emission trading schemes: potential revenue effects, compliance costs and overall tax policy issues," Energy Policy, Elsevier, vol. 37(11), pages 4595-4603, November.
    3. Teresa Palmer Tous & Antoni Riera Font, 2005. "Road transport taxation: a critical review of their internalising effectiveness," Hacienda Pública Española, IEF, vol. 173(2), pages 165-191, June.
    4. Xavier Labandeira Villot & Ángel López Nicolás, 2002. "La imposición de los carburantes de automoción en España: Algunas observaciones teóricas y empíricas," Hacienda Pública Española, IEF, vol. 160(1), pages 177-210, march.
    5. Max Keilbach, 1995. "Estimation of the value of the marginal product of emission in a country where emissions output is regulated — an empirical study," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 5(3), pages 305-319, April.
    6. repec:gam:jsusta:v:9:y:2017:i:10:p:1857-:d:115467 is not listed on IDEAS
    7. Ruth, Matthias & Davidsdottir, Brynhildur & Laitner, Skip, 2000. "Impacts of market-based climate change policies on the US pulp and paper industry," Energy Policy, Elsevier, vol. 28(4), pages 259-270, April.
    8. Larsen, Bjorn, 1994. "World fossil fuel subsidies and global carbon emissions in a model with interfuel substitution," Policy Research Working Paper Series 1256, The World Bank.
    9. Li, G.C. & Huang, G.H. & Lin, Q.G. & Zhang, X.D. & Tan, Q. & Chen, Y.M., 2011. "Development of a GHG-mitigation oriented inexact dynamic model for regional energy system management," Energy, Elsevier, vol. 36(5), pages 3388-3398.
    10. Wang, Qiang & Li, Rongrong, 2015. "Cheaper oil: A turning point in Paris climate talk?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 1186-1192.
    11. repec:eee:resene:v:50:y:2017:i:c:p:135-163 is not listed on IDEAS
    12. Michael Schauer, 1995. "Estimation of the greenhouse gas externality with uncertainty," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 5(1), pages 71-82, January.
    13. Peter Bohm & Bjorn Larsen, 1994. "Fairness in a tradeable-permit treaty for carbon emissions reductions in Europe and the former Soviet Union," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 4(3), pages 219-239, June.
    14. Almansoori, Ali & Betancourt-Torcat, Alberto, 2015. "Design optimization model for the integration of renewable and nuclear energy in the United Arab Emirates’ power system," Applied Energy, Elsevier, vol. 148(C), pages 234-251.
    15. repec:clr:wugarc:y:1993:v:19i:3p:315 is not listed on IDEAS
    16. Wang, Qiang & Li, Rongrong, 2016. "Impact of cheaper oil on economic system and climate change: A SWOT analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 925-931.
    17. Larsen, Bjorn & Shah, Anwar & DEC, 1992. "World fossil fuel subsidies and global carbon emissions," Policy Research Working Paper Series 1002, The World Bank.

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