 Carbon Taxes and CO2 Emissions: A Replication of Andersson (American Economic Journal: Economic Policy, 2019)Yanxia Yu Working Papers in Economics from University of Canterbury, Department of Economics and Finance Abstract: Do carbon taxes reduce CO2 emissions in the countries that adopt it? Andersson (2019) provides a clear, affirmative answer. His paper has been widely cited as evidence that carbon taxes “work”. To check whether the estimates from Andersson (2019) are reliable, I replicate his paper using its publicly available data and codes. I modify his synthetic control method (SCM) by using a more restricted set of control units (excluding one potential treated unit). I also use a more efficient methodology to estimate price effects on gasoline consumption. My best estimate is that carbon taxes reduced CO2 emissions in Sweden’s transport sector by 7.7%, even larger than Andersson’s estimate of 6.3%. I then extend Andersson’s approach to Norway to see if I obtain similar results. My estimates indicate that per capita CO2 emissions decreased by a smaller, 2.4% in Norway’s transport sector after the introduction of its carbon tax. When I extend Andersson’s analysis to the national level in Sweden, my results are uninformative due to the difficulty in finding a satisfactory synthetic control counterfactual. Keywords: Replications; synthetic control method; carbon tax; CO2 emissions (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:cbt:econwp:23/09 Access Statistics for this paper More papers in Working Papers in Economics from University of Canterbury, Department of Economics and Finance Private Bag 4800, Christchurch, New Zealand. Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.