The impact of a carbon tax on manufacturing: Evidence from microdata

Martin, Ralf; Preux, Laure de; Wagner, Ulrich J.

doi:10.1016/j.jpubeco.2014.04.016

Cited by 286 publications

(167 citation statements)

References 26 publications

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“…Most striking is the size of the effects: abolishing the exemption in contributing to this impure public good almost doubles the acceptance rate for a given burden, a larger effect than when quartering this burden. Our empirical finding that reducing inequity in the distribution of cost increases the acceptance of bearing these costs may have high external validity, that is, it may have far-reaching implications for policy-making in other fields where exemptions exist as well, for instance in carbon tax schemes (Bjørner and Jensen, 2002;Martin et al, 2014;Rivers and Schaufele, 2015;Yamazaki, 2017).…”

Section: Introductionmentioning

confidence: 90%

Equity and The Willingness to Pay for Green Electricity: Evidence from Germany

Andor

Sommer

2018

SSRN Journal

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The production of electricity on the basis of renewable energy technologies is a classic example of an impure public good. It is often discriminatively financed by industrial and household consumers, such as in Germany, where the energy-intensive sector benefits from far-reaching exemptions, while all other electricity consumers are forced to bear a higher burden. Based on randomized information treatments in a stated-choice experiment among about 11,000 German households, we explore whether this coercive payment rule affects households' willingness-to-pay (WTP) for green electricity. Our central result is that reducing inequity by abolishing the exemption for the energy-intensive industry raises households' WTP, a finding that may have high external validity.

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Section: Introductionmentioning

confidence: 90%

Equity and The Willingness to Pay for Green Electricity: Evidence from Germany

Andor

Sommer

2018

SSRN Journal

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“…Although certain studies, such as Martin et al. (), attempted to address these concerns with natural experimental designs, proof of causality from more cases is needed to conclusively assess the effectiveness of this tool. More specifically, more studies are needed to focus on developing countries whose governments are engaging in practicing environmental taxes to combat their soaring pollution emissions as there are few restrictions (Cottrell et al., ).…”

Section: Introductionmentioning

confidence: 99%

Environmental Tax, Polluting Plants’ Strategies and Effectiveness: Evidence from China

He¹,

Zhang²

2018

J Policy Anal Manage

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Although environmental taxes have become a popular policy tool, their effectiveness for pollution control and impact on the compliance strategies of agents remains questionable. This research uses a quasi‐experimental design to examine the effectiveness of the Pay for Permit policy, an environmental tax that has been imposed on water pollution emissions in Lake Tai Basin, Jiangsu, China, since 2009. A plant‐level panel dataset from 2007 to 2010 is used for both difference‐in‐differences and difference‐in‐difference‐in‐differences analyses to compare the pollution discharge, pollution abatement, and pollution generation of policy participants and control groups. The results indicate that treated plants reduce their emissions by about 40 percent after two years of the policy implementation. Thus, the policy generated approximately a 7 percent decrease in the industrial chemical oxygen demand emission in the entire Lake Tai Basin based on the emission level of 2007. Pollution is primarily reduced via end‐of‐pipe abatement instead of cleaner production. Our results show the effectiveness of environmental taxes in controlling industrial pollution, and indicate that the tax may not motivate the adoption of innovative techniques in the short term.

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“…They show that the tradable permit system yielded emission reductions of 20 percent in comparison to the counterfactual, where facilities were regulated by command-and-control regulation. Martin, de Preux, and Wagner (2014) evaluate the impact of a carbon tax on the manufacturing industry in the UK using an instrumental variable approach. They provide robust evidence that the Climate Change Levy significantly decreased energy intensity and electricity use, while the economic performance of the firms remained unaffected.…”

Section: Introductionmentioning

confidence: 99%

The Effect of Electricity Taxation on the German Manufacturing Sector: A Regression Discontinuity Approach

Flues

Lutz

2015

SSRN Journal

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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. AbstractGermany taxes electricity use since 1999. The government granted reduced rates to energy intensive firms in the industrial sector for addressing potentially adverse effects on firms' competitiveness. Firms that use more electricity than certain thresholds established by legislation, pay reduced marginal tax rates. As a consequence, the marginal tax rate is a deterministic and discontinuous function of electricity use. We identify and estimate the causal effects of these reduced marginal tax rates on the economic performance of firms using a regression discontinuity design. Our econometric analysis relies on official micro-data at the plant and firm level collected by the German Federal Statistical Office that cover the whole manufacturing sector. We do not find any systematic, statistically significant effects of the electricity tax on firms' turnover, exports, value added, investment and employment.The results suggest that eliminating the reduced marginal electricity tax rates could increase revenues for the government without adversely affecting firms' economic performance.

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The impact of a carbon tax on manufacturing: Evidence from microdata

Cited by 286 publications

References 26 publications

Equity and The Willingness to Pay for Green Electricity: Evidence from Germany

Equity and The Willingness to Pay for Green Electricity: Evidence from Germany

Environmental Tax, Polluting Plants’ Strategies and Effectiveness: Evidence from China

The Effect of Electricity Taxation on the German Manufacturing Sector: A Regression Discontinuity Approach

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