The Distributional Implications of a Carbon Tax in Ireland

Tim Callan (), Sean Lyons (), Susan Scott, Richard S.J. Tol () and Stefano Verde
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Stefano Verde: Trinity College Dublin

No WP250, Papers from Economic and Social Research Institute (ESRI)

Abstract: We study the effects of carbon tax and revenue recycling across the income distribution in the Republic of Ireland. In absolute terms, a carbon tax of ?20/tCO2 would cost the poorest households less than ?3/week and the richest households more than ?4/week. A carbon tax is regressive, therefore. However, if the tax revenue is used to increase social benefits and tax credits, households across the income distribution can be made better off without exhausting the total carbon tax revenue.

Keywords: Carbon tax; Ireland; income distribution (search for similar items in EconPapers)
JEL-codes: D31 H23 Q54 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eec, nep-ene and nep-env
Date: 2008-07
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Related works:
Journal Article: The distributional implications of a carbon tax in Ireland (2009)
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