publication . Research . Preprint . 2009

EU-Type Carbon Emissions Trade and the Distributional Impact of Overlapping Emissions Taxes

Eichner, Thomas; Pethig, Rüdiger;
Open Access
  • Published: 01 Jan 2009
  • Publisher: Munich: Center for Economic Studies and Ifo Institute (CESifo)
Abstract
The European Union fulfills its emissions reductions commitments by means of an emissions trading scheme covering some part of each member state’s economy and by national emissions control in the rest of their economies. The member states also levy energy/emissions taxes overlapping with the trading scheme. Restricting our focus on cost-effective policies, this paper investigates the distributive consequences of increasing the overlapping emissions tax that is uniform across countries. For quasi-linear utility functions and for a class of parametric utility and production functions emissions tax increases turn out to be exactly offset by permit price reduction...
Subjects
free text keywords: Emissionshandel, Steuerinzidenz, Wohlfahrtseffekt, emissions taxes, emissions trading, international trade, H21, EU-Staaten, H22, Emissions taxes, Außenhandel, Q56, emissions trading, Ökosteuer, international trade, Theorie, jel:H22, jel:H21, jel:Q56, ddc:330

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publication . Research . Preprint . 2009

EU-Type Carbon Emissions Trade and the Distributional Impact of Overlapping Emissions Taxes

Eichner, Thomas; Pethig, Rüdiger;