Combining input‐output analysis and micro‐simulation to assess the effects of carbon taxation on Spanish households
- 1 September 1999
- journal article
- Published by Wiley in Fiscal Studies
- Vol. 20 (3) , 305-320
- https://doi.org/10.1111/j.1475-5890.1999.tb00015.x
Abstract
This paper explores the effects of a tax levied on Spanish energy‐related CO2 emissions. After justifying the relevance of carbon taxation in the Spanish context, we consider the introduction of a product (fossil‐fuel) tax with a rate obtained through the ‘actual damage cost’ method. Our empirical analysis proceeds in two stages. First, we employ an input‐output demand model to calculate the price changes after the introduction of carbon taxation. In a second stage, simulation with Spanish household micro‐data for 1994 yields the environmental and economic effects of a Spanish carbon tax. We find a limited short‐run reaction to the carbon tax, which hampers its environmental success. The carbon tax burden is, however, significant, with a proportional distribution across households.Keywords
This publication has 13 references indexed in Scilit:
- Quadratic Engel Curves and Consumer DemandThe Review of Economics and Statistics, 1997
- Tax Reform and Welfare Measurement: Do We Need Demand System Estimation?The Economic Journal, 1996
- Carbon Taxation, Prices and Inequality in AustraliaFiscal Studies, 1996
- Simulating the Distributional Effects of a Canadian Carbon TaxCanadian Public Policy, 1994
- The Social Costs of Greenhouse Gas Emissions: An Expected Value Approach*The Energy Journal, 1994
- Economic Instruments for Air Pollution Control in SwedenPublished by Springer Nature ,1994
- The European carbon tax: an assessment of the European Commission's proposalsPublished by Institute for Fiscal Studies ,1991
- Lifetime Incidence and the Distributional Burden of Excise TaxesPublished by National Bureau of Economic Research ,1989
- The Theory of Environmental PolicyPublished by Cambridge University Press (CUP) ,1988
- Welfare analysis of tax reforms using household dataJournal of Public Economics, 1983