<Para ID="Par1">We investigate political economy determinants of energy tax differentiation across industries. Based on a theoretical common agency model, we show that differences in the ease of energy demand reductions across industries explain the pattern of tax differentiation: if the government is...</para>

Starting in 2005, the EU will implement a CO<Subscript>2</Subscript> emissions trading scheme. We show that the outspoken objectives of economic efficiency and free allocation of allowances are incompatible with harmonized allocation rules. The latter would be necessary to avoid unequal changes of the financial...</subscript>