We estimate the long-run effect of a uniform carbon tax on energy consumption by using a new and unique dataset in which effective tax rates of OECD countries are calculated in terms of carbon dioxide emissions. The effective tax rates account for the widely discussed tax deductions for specific...

We consider a global externality of resource use, with the example of greenhouse gas emissions from fossil fuels. A region concerned about climate change may reduce its fuel deposit offer, reduce fuel consumption, and withdraw investments into global fuel extraction. We study leakage rates and...

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 examines 'traditional' (non-environmental) efficiency consequences and environmental effects of two energy tax policies: a tax on fossil and synthetic fuels based on Btu (or energy) content and a tax on consumer purchases of gasoline. It uses a model that uniquely combines attention...

The paper is a general equilibrium analysis of an energy tax reform in a federation. It gives us a tool to measure the welfare effects and the vertical tax externalities of the tax reform. Vertical tax externalities may arise when two government levels impose taxes on common tax bases. We show...

Effective carbon taxation is essential to achieving the green transition. However, there is typically stiff opposition to carbon taxation due to perceived or actual adverse equity and other impacts. Hence, a better understanding of which factors, including the use of tax revenue, can increase...