Distributional Effects of a European Carbon Tax

Author(s):  
Stephen Smith
2020 ◽  
Vol 12 (1) ◽  
Author(s):  
Christine Eisenmann ◽  
Felix Steck ◽  
Lars Hedemann ◽  
Barbara Lenz ◽  
Florian Koller

Abstract Background The introduction of a carbon tax on passenger transport is currently being discussed in Germany. Various stakeholders favour a consumption-based, revenue-neutral carbon tax with a uniform lump-sum offset for private households and a tax rate of 40 € per ton of CO2. Objective In this study, we examine the distributional effects of carbon taxation for the German passenger transport sector under the assumption of the proposed tax model. We discuss as to what extent which socioeconomic groups would be burdened and who might even benefit from carbon taxation. To answer these questions we use a uniquely modelled data set that encompasses all forms of passenger transport (i.e. in Germany and abroad) of the German resident population over 1 year. The national household travel survey Mobility in Germany 2017 is the basis of the microscopic data set. We derive annual CO2 emissions and carbon tax burdens for various population groups using the data on passenger transport, as well as specific emission factors. Results Results show that low income households, retirees, single parents and family households with two or more children would benefit from the proposed carbon taxation scheme due to below-average emissions per person; in contrast, working age households without children and car owners with heavy car use would be burdened. Our results are of particular relevance to transport researchers, transport politicians and decision makers as a basis for designing, developing and introducing a carbon taxation scheme.


Energy Policy ◽  
2014 ◽  
Vol 66 ◽  
pp. 326-334 ◽  
Author(s):  
Aparna Mathur ◽  
Adele C. Morris

2018 ◽  
Vol 30 ◽  
pp. 30-46 ◽  
Author(s):  
Stephie Fried ◽  
Kevin Novan ◽  
William B. Peterman

2013 ◽  
Vol 5 (3) ◽  
pp. 271-302
Author(s):  
Pooja Rathore ◽  
Sangeeta Bansal

2019 ◽  
Vol 28 (3) ◽  
pp. 271-274 ◽  
Author(s):  
Andreas Diekmann ◽  
Heidi Bruderer Enzler

Der Ruf nach einer CO2-Bepreisung wird international lauter, da CO2-Emissionen damit effektiv gesenkt werden können. Allerdings ist die klimapolitische Maßnahme auch umstritten, da sie angeblich Personen mit niedrigem Einkommen zu stark belastet. Das Schweizer Modell zeigt, dass Geringverdienende von einer CO2 -Abgabe profitieren ‐ dank Rückerstattung.A carbon tax is an effective instrument for reducing industrial and household carbon emissions. Some, however, put forward the objection that taxing CO2 is a greater burden for lower-class households than for affluent household. Revenue redistribution to taxpayers compensates for the negative distributional effects of a carbon tax. In 2008, Switzerland introduced a CO2 levy on heating-related fossil fuel use. The levy was raised to 96 Swiss francs (87 Euro) per ton CO2. Two thirds of the revenues are redistributed to residents while one third is spent on building renovations and technological innovations. In the current study, we investigated the distributional effects of a hypothetical CO2 levy with redistribution on all products and services. We calculated individual carbon footprints based on survey data from Swiss households. As expected, the carbon footprint distribution was strongly skewed to the right. We report correlations of carbon footprints with income and estimate the proportion of the population that stands to gain from a CO2 levy with redistribution. The results show that, in addition to mitigating climate change, this policy will prove beneficial for a large majority of the population.


1994 ◽  
Vol 20 (4) ◽  
pp. 385 ◽  
Author(s):  
Kirk Hamilton ◽  
Grant Cameron

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