Footprint analysis and the incidence of emission taxes

Thijs ten Raa and Rob Stahlie

Ecological Economics, 2024, vol. 224, issue C

Abstract: We show that the incidence of emission taxes on consumer income classes is proportional to the footprints of their respective consumption bundles. The dimensions of the footprints are industry by product, but the literature employs industry-by-industry input-output coefficients. We rectify footprint analysis by returning to the underlying national accounts, the use and make tables. Bringing in budget shares data of the different income classes (Engel curves), we show that the carbon dioxide footprint per euro expenditure decreases with income in the Netherlands. Our result renders an emission tax regressive and thus implies a tradeoff between environmental and income policies.

Keywords: Footprint analysis; Engel curves; Emission taxes; Regressivity (search for similar items in EconPapers)
JEL-codes: C67 Q52 Q56 Q58 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolec:v:224:y:2024:i:c:s0921800924001113

DOI: 10.1016/j.ecolecon.2024.108214

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