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Efficiency and equity aspects of energy taxation

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  • Toon Vandyck

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Abstract

We analyse the distributional effects of increased oil excises in Belgium by combining a regional Computable General Equilibrium (CGE) model with a microsimulation framework that exploits the rich detail of household-level data. The results suggest that policymakers face an equity-efficiency trade-off driven by the choice of revenue recycling options. Regional impact variation appears to be substantial.

Suggested Citation

  • Toon Vandyck, 2013. "Efficiency and equity aspects of energy taxation," ERSA conference papers ersa13p945, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa13p945
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    Cited by:

    1. Vera, Sonia & Sauma, Enzo, 2015. "Does a carbon tax make sense in countries with still a high potential for energy efficiency? Comparison between the reducing-emissions effects of carbon tax and energy efficiency measures in the Chile," Energy, Elsevier, vol. 88(C), pages 478-488.
    2. repec:eee:inteco:v:150:y:2017:i:c:p:80-95 is not listed on IDEAS
    3. 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 - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    4. van Ruijven, Bas J. & O’Neill, Brian C. & Chateau, Jean, 2015. "Methods for including income distribution in global CGE models for long-term climate change research," Energy Economics, Elsevier, vol. 51(C), pages 530-543.
    5. Abdul-Manan, Amir F.N. & Arfaj, Abdullah & Babiker, Hassan, 2017. "Oil refining in a CO2 constrained world: Effects of carbon pricing on refineries globally," Energy, Elsevier, vol. 121(C), pages 264-275.
    6. Al-Riffai, Perrihan & Breisinger, Clemens & Mondal, Md. Hossain Alam & Ringler, Claudia & Wiebelt, Manfred & Zhu, Tingju, 2017. "Linking the economics of water, energy, and food: A nexus modeling approach:," MENA working papers 4, International Food Policy Research Institute (IFPRI).
    7. 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.
    8. Scaringella, Laurent & Chanaron, Jean-Jacques, 2016. "Grenoble–GIANT Territorial Innovation Models: Are investments in research infrastructures worthwhile?," Technological Forecasting and Social Change, Elsevier, vol. 112(C), pages 92-101.
    9. Chiu, Fan-Ping & Kuo, Hsiao-I. & Chen, Chi-Chung & Hsu, Chia-Sheng, 2015. "The energy price equivalence of carbon taxes and emissions trading—Theory and evidence," Applied Energy, Elsevier, vol. 160(C), pages 164-171.
    10. repec:cii:cepiie:2017-q2-150-6 is not listed on IDEAS

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    Keywords

    energy policy; cge; microsimulation;

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