Green taxation in Italy: an assessment of a carbon tax on transport

Federico Cingano and Ivan Faiella

No 206, Questioni di Economia e Finanza (Occasional Papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: The Europe 2020 strategy commits Italy to reduce emissions by about 16 per cent by 2020, compared with 2005. In the case of transport, the sector that has contributed most to the growth of total emissions between 1990 and 2008, the 2020 target could be achieved by introducing a Carbon Tax (CT). A CT would significantly reduce households� demand for private transportation, lowering their emissions. CT proceedings could pay for the reduction of more distortive levies (e.g. labour taxation) or recycled to finance the deploying of renewable energy, replacing the existing charges on electricity consumption, thus alleviating the cost burden of less-affluent households. The CT would also be consistent with the polluter-pays principle, since the largest reduction in emissions would be financed to a proportionally larger extent by those with higher emissions.

Keywords: environmental taxation; climate change; transports (search for similar items in EconPapers)
JEL-codes: D62 Q52 Q54 Q58 (search for similar items in EconPapers)
Date: 2013-10
New Economics Papers: this item is included in nep-acc, nep-ene, nep-env, nep-res and nep-tre
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Persistent link: https://EconPapers.repec.org/RePEc:bdi:opques:qef_206_13

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