Designing Fiscal Policy to Address the External Costs of Energy

Ian Parry

No 5128, CESifo Working Paper Series from CESifo

Abstract: This paper first reviews the conceptual case for, and appropriate design of, fiscal policies to address major externalities associated with energy use—global warming, local air pollution, and various side effects (e.g., congestion) from motor vehicles. Techniques for (roughly) estimating the magnitude of these externalities, and corrective energy taxes, on a country-by-country basis are then described. The implications for reforming energy taxes, and the potential environmental, health, and fiscal benefits from reform, are then discussed. A theme of the paper is the critical role of finance ministries in administering tax reforms and ensuring efficient use of revenues.

Keywords: externalities; energy taxes; getting prices right; air pollution; global warming (search for similar items in EconPapers)
JEL-codes: H23 Q48 Q54 Q58 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Designing Fiscal Policy to Address the External Costs of Energy (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_5128

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