Using the gasoline tax to reduce the US federal government's budget deficit
The analysis presented in this paper examines the US impact of raising the excise tax on gasoline on the US economy. The analytical approach used in the analysis consists of a computable general equilibrium model composed of fourteen producing sectors, fourteen consuming sectors, six household categories classified by income and the government. The effects of a 50 cents per gallon increase in the excise tax on gasoline on prices and quantities include a lower output by the producing sectors (by about $35·0 billion), a reduction in the consumption of goods and services (by about $28·6 billion), and a reduction in welfare (by about $51·7 billion). The govenment would realize an increase in revenue of about $17·3 billion. When subjected to a sensitivity analysis, the results are reasonably robust with regard to the assumption of the values of the substitution elasticities.
Year of publication: |
1993
|
---|---|
Authors: | Uri, Noel D. ; Boyd, Roy |
Published in: |
Applied Energy. - Elsevier, ISSN 0306-2619. - Vol. 46.1993, 3, p. 215-239
|
Publisher: |
Elsevier |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Eliminating direct payments to farmers in the United States : the impact on land values
Beach, Elsworth Douglas, (1995)
-
Assessing the impact of the sugar programme on the US economy
Uri, Noel Dean, (1994)
-
Redistributing the energy tax burden in the Philippines
Uri, Noel Dean, (1994)
- More ...