Distributional Effects of Environmental Taxes on Transportation

Aasness, Jørgen; Larsen, Erling Røed

doi:10.1023/a:1025651404957

Cited by 22 publications

(26 citation statements)

References 16 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Reductions of the VAT turned out to be relatively inefficient. 29 An ES of existing Danish environmental taxes show that regressive effects result from these taxes in the aggregate. 21 Environmental taxes are relatively ambitious in Denmark.…”

Section: Developed Countriesmentioning

confidence: 99%

Social Implications of Green Growth Policies from the Perspective of Energy Sector Reform and its Impact on Households

Heindl,

LLschel

2015

SSRN Journal

View full text Add to dashboard Cite

Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW. Social Implications of Green Growth Policies from the Perspective of Energy Sector Reform and its Impact on Households Andreas Löschel University of Münster February 2015 This paper is also available as: OECD Issue Note -Social Implications of Green Growth Policies from the Perspective of Energy Sector Reform and its Impact on Households-AbstractThis paper reviews the literature on distributional effects of energy and carbon taxation with focus on microsimulation models. Most studies find that direct energy and carbon taxation tends to be regressive. Regressive effects occur mostly with respect to taxation of electricity or space heating. Taxation of transportation fuels show less regressive, neutral, or even progressive effects. Adequate revenue recycling often allows for neutralisation or full elimination of regressive effects so that energy and carbon tax reforms can be progressive. Some studies find evidence for the existence of a double dividend. There seems to be an efficiency-equity trade-off in revenue recycling, i.e. whether to foster growth or to assist low-income households. While a large number of studies on advanced economies are available, there clearly is a gap with regard to evidence for developing countries. Another gap relates to the lack of documentation on the challenges of incorporating macroeconomic models and long-term modelling perspectives in microsimulation. Both aspects can be of great importance with respect to the design of green growth policies. Thoughtful incorporation of social considerations, including aspects of poverty in modelling approaches could enhance the existing instruments of exante policy assessments since poverty is a tangible concept which is well-known, understandable, and openly observable for citizens and policy makers.

show abstract

Section: Developed Countriesmentioning

confidence: 99%

Social Implications of Green Growth Policies from the Perspective of Energy Sector Reform and its Impact on Households

Heindl,

LLschel

2015

SSRN Journal

View full text Add to dashboard Cite

show abstract

“…The reason is clear: Engel curves are useful. If we know the Engel curve of a given good, and policymakers consider levying a tax on it, an analysis of the distribution of the tax payments is feasible using the Engel curve; see, e.g., Aasness and Røed Larsen (2003). If we know the Engel curve for a given good and we think we have access to accurate predictions of income growth, then we can construct forecasts, ceteris paribus, for the long-term development of the demand for the good.…”

Section: Literaturementioning

confidence: 99%

The Engel Curve of Owner-Occupied Housing Consumption

Larsen

2014

Journal of Applied Economics

Self Cite

View full text Add to dashboard Cite

Housing is a major component of aggregate demand, and understanding how the demand for housing co-varies with income is useful for analysis and policy. While estimating housing consumption for tenants amounts to observing rents, estimating housing consumption for owner-occupiers is challenging because it is not directly observable and interest payments vary with re-paid principals. In order to examine the housing consumption for owner-occupiers, this article combines micro data sets on income and imputed rents for owner-occupiers based on home attributes from a consumer expenditure survey and monthly rents in a rental survey. This allows estimation of an Engel curve of owner-occupied consumption, both parametrically and non-parametrically. Regression results demonstrate that the income share of owner-occupied housing consumption decreases with income, while the Engel elasticity computed at the mean is 0.32 and increasing in income.JEL classification codes: C21, D12, D63, H23

show abstract

“…(1997), Wangen and Aasness (2002), and Aasness and Røed Larsen (2003). We have used information given in NOU (2003:17) to make estimates on several of the budget shares and elasticities that serve as a basis for our calibration.…”

Section: A Simulation Model Of Consumer Behaviormentioning

confidence: 99%

Revenue functions and Dupuit curves for indirect taxes with cross-border shopping

Aasness

Nygård

2013

Int Tax Public Finance

Self Cite

View full text Add to dashboard Cite

Abstract:The partial revenue from each indirect tax and the total revenue from all indirect taxes on consumer goods are derived as functions of all commodity prices, the tax rates of each commodity, total expenditure and demographic variables using a complete demand system. Within this framework we define Dupuit curves, or Laffer curves, and analyze their existence and maximum points theoretically and empirically. The macro demand system is based on exact aggregation across all households in the economy, and on exact aggregation across commodities within a detailed non-homogeneous utility tree. An empirical application for Norway with 55 commodity groups is presented. For beer, wine, spirits and tobacco, consumers can choose among buying at home, cross-border shopping/ tax-free shopping and smuggling. These substitution possibilities increase substantially the price elasticities for these goods. The partial revenue from wine as function of the tax share on wine has a single maximum value close to the actual tax rate in Norway in 1999, conditioned on all the other exogenous variables. The total revenue as a function of the tax share on wine also has a single maximum value, larger than that for the partial revenue. The same results are valid for spirits. For beer and tobacco there is no revenue maximizing tax share.

show abstract

Distributional Effects of Environmental Taxes on Transportation

Cited by 22 publications

References 16 publications

Social Implications of Green Growth Policies from the Perspective of Energy Sector Reform and its Impact on Households

Social Implications of Green Growth Policies from the Perspective of Energy Sector Reform and its Impact on Households

The Engel Curve of Owner-Occupied Housing Consumption

Revenue functions and Dupuit curves for indirect taxes with cross-border shopping

Contact Info

Product

Resources

About