By using estimates from an Almost Ideal Demand System (AIDS), we investigate how the German energy tax on car fuels changes the private households-CO2 emissions, living standards, and post-tax income distribution. Our results show that the tax implies a trade-off between the aim to reduce...

This paper investigates the economic impacts of environmental tax reforms designed to reach given emission reduction targets for the German economy. Our focus is on the efficiency and employment implications of alternative schemes for emission tax differentiation between the production sector...