 Share of polluting input as a sufficient statistic for burden sharingDa Zhang, Hantang Peng and Lin Zhang Energy Economics, 2023, vol. 121, issue C Abstract: By investigating the general equilibrium effects with theoretical analysis and computational experiments, we observe that the value share of polluting input is a sufficient statistic for the welfare incidence of a quantity-based policy in a competitive economy for short-term and commonly implemented mitigation policy. This result is robust with respect to the sectoral, regional disaggregation and consumer preference. In contrast, with a given pollution tax, the imputed welfare incidence could vary under economies with different production technologies and consumer preferences. The quantity-based policy instrument leads to a more explicit welfare incidence than the price instrument. On this basis, outcome-based criteria used in pollution reduction burden sharing across regions can simply choose the value share of polluting input as a reference base for allocation. Keywords: Burden sharing; Polluting input intensity; Price and quantity; General equilibrium (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:eee:eneeco:v:121:y:2023:i:c:s0140988323001457 DOI: 10.1016/j.eneco.2023.106647 Access Statistics for this article Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant More articles in Energy Economics from Elsevier |
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