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Energy Tax Reform with Exemptions for the Energy-Intensiv Export Sector

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  • Reto Schleiniger

Abstract

The present paper applies a theoretical two-sector three-factor model to analyze a variety of energy tax reforms with the common feature of at least partly exempting the energy-intensive export sector from the tax. As a result, all scenarios with exemptions reduce energy less than the non-discriminating textbook version of the energy tax. Moreover, in the two scenarios that exemplify typical attributes of the tax reforms in Germany and Denmark, an increase in total energy use is possible. This is due to a positive output effect resulting from a substitution of the energy-intensive for the labor-intensive commodity.

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  • Reto Schleiniger, "undated". "Energy Tax Reform with Exemptions for the Energy-Intensiv Export Sector," IEW - Working Papers 073, Institute for Empirical Research in Economics - University of Zurich.
    • Handle: RePEc:zur:iewwpx:073
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    File URL: https://www.econ.uzh.ch/apps/workingpapers/wp/iewwp073.pdf
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    More about this item

    Keywords

    Environmental tax reform; general equilibrium model;

    JEL classification:

    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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