Workable Environmentally Related Energy Taxes

Navajas, Fernando; Panadeiros, Monica; Natale, Oscar

doi:10.2139/ssrn.2219780

Cited by 6 publications

(10 citation statements)

References 28 publications

(34 reference statements)

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“…This is so both in OECD countries (as the survey by Barde and Braathen, 2005 shows) and in Latin America, including the three countries in this study (Argentina, Bolivia and Uruguay). 2 In a related and extensive report (Navajas, Panadeiros and Natale, 2011), we found differences in level and structure of ERT with OECD countries but with the common feature that energy taxes are prime contributors. Compared to European Union (EU) countries, environmental taxes in Argentina are low, measured as a percentage of GDP, but their composition is similar to the European average.…”

Section: Introductionmentioning

confidence: 83%

“…In this presentation we keep a simple format that we believe has a minimal structure from which we can progress into estimation. Additional developments stemming from relaxing assumptions or introducing new topics are referred to in a larger report in Navajas, Panadeiros and Natale (2011).…”

Section: Modeling Strategy For Workable Reform Analysismentioning

confidence: 99%

“…Technical details behind the derivation of tax formulas can be found in Appendix 1 and more extensively in Navajas, Panadeiros and Natale (2011).…”

Section: Modeling Strategy For Workable Reform Analysismentioning

confidence: 99%

“…This assumption is convenient for a fast estimation of the marginal cost of public funds (λ),from an assumed value of η 0 and the observed tax margin (t/(1+t)). 8 In Navajas, Panadeiros and Natale (2011) we further compare the implicit characteristics θ i with the so-called distributional characteristics of energy goods (d i ). The distributional characteristics represent parameters that adapt tax structures to distributive objectives (they are larger as the goods are mostly consumed by low-income agents and/or the welfare metrics are more averse to inequality).…”

Section: Status Quo and Reformmentioning

confidence: 99%

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Workable Environmentally Related Energy Taxes

Panadeiros,

Navajas,

Natale

2012

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This paper models an energy tax reform process out of a status quo and towards environmentally related excises, distinguishing between uniform and non-uniform tax components, positive and normative tax structures, and adopting a non- Ramsey specification. The model is implemented for Argentina, Bolivia and Uruguay, and a rebalancing of fuel taxes is found where gasoline and diesel are the main drivers, due in part to higher estimates of the environmental costs of diesel relative to gasoline than those found in Parry and Strand (2010) for Chile. Environmental (mostly local) gains of the reform are significant, while fiscal impacts are positive and large. They do not, however, include double dividend effects because of price increases in widespread energy inputs triggered by the reform exercise. The tax reform has a positive distributive impact in Uruguay, while large pre-existing price distortions tend to produce negative impacts in Argentina and Bolivia.

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Section: Introductionmentioning

confidence: 83%

Section: Modeling Strategy For Workable Reform Analysismentioning

confidence: 99%

“…Technical details behind the derivation of tax formulas can be found in Appendix 1 and more extensively in Navajas, Panadeiros and Natale (2011).…”

Section: Modeling Strategy For Workable Reform Analysismentioning

confidence: 99%

Section: Status Quo and Reformmentioning

confidence: 99%

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Workable Environmentally Related Energy Taxes

Panadeiros,

Navajas,

Natale

2012

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“…For a broad review of energy taxes within green tax reforms, see Gago, Labandeira, and López-Otero (2014). For a quantitative application of a quasioptimal tax framework to tax reform exercises related to energy and the environment in Argentina, Bolivia, and Uruguay, see Navajas, Panadeiros, and Natale (2012).…”

Section: Structures Stylized Factsmentioning

confidence: 99%

Effective Carbon Rates on Energy Use in Latin America and the Caribbean: Estimates and Directions of Reform

Ahumada¹,

Espina-Mairal²,

Navajas³

et al. 2023

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This paper estimates effective carbon rates (ECRs) on carbon dioxide (CO2) emissions from energy use for 18 Latin American and Caribbean (LAC) countries. We follow a methodology developed by the Organization for Economic Co-operation and Development (OECD) as this allows us to compare ECR estimates for LAC countries with those for other countries in other regions. We also adapt the OECD methodology to assess the effect of energy subsidies on ECRs. The results obtained indicate that ECRs were low in LAC countries in 2018. On average, LAC countries priced carbon emissions from energy use at 24 euros per ton of CO2 equivalent (EUR/tCO2e) emissions, while the average pricing in OECD countries was 41 EUR/tCO2e. When considering energy subsidies, the average ECR in LAC falls to 17 EUR/tCO2e. The difference in average carbon pricing observed between LAC and the OECD is, for the most part, explained by lower excise taxes in LAC and, to a lesser extent, to few LAC countries having carbon taxes and the lack of tradable carbon emission permit mechanisms. We also find a large heterogeneity of ECRs across LAC countries as well as across sectors within countries. ECRs are the highest in Costa Rica and the lowest in Ecuador. At the sector level, ECRs are on average the highest in the road transport sector and the lowest in the electricity sector and in the residential and commercial energy use sector. These differences stem mostly from the different taxation of the different energy products. The ECR estimates suggest that countries willing to introduce carbon pricing reforms must pay particular attention to reducing fuel energy subsidies and to increasing ECRs in sectors other than road transport, as these sectors constitute a large share of carbon emissions and are virtually untaxed.

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More than Revenue: Main Challenges for Taxation in Latin America and the Caribbean

Ter-Minassian

2012

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This paper aims to provide an overview of the current state of taxation in the Latin America and Caribbean (LAC) region, and its main reform needs and options. It previews the findings of recent studies prepared or commissioned by the Inter-American Development Bank (IDB) for its forthcoming flagship publication More than Revenue: Taxation as a Development Tool in the -Development in the Americas- series. Reflecting fiscal consolidation imperatives, the main objective of fiscal policies in the region in recent decades has been revenue mobilization, often at the expense of efficiency and equity objectives. This paper analyzes the region's taxation in regard to revenue adequacy, efficiency, vertical and horizontal equity, ease of administration and compliance, and degree of fiscal decentralization, concluding that there is significant scope for reforms that would result in simultaneous improvement on several of these fronts. Although the paper does not provide a specific blueprint for reforms, which would need to be designed on a country-by-country basis, it identifies directions for reform that are relevant for most of the region.

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Workable Environmentally Related Energy Taxes

Cited by 6 publications

References 28 publications

Workable Environmentally Related Energy Taxes

Workable Environmentally Related Energy Taxes

Effective Carbon Rates on Energy Use in Latin America and the Caribbean: Estimates and Directions of Reform

More than Revenue: Main Challenges for Taxation in Latin America and the Caribbean

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