Economic, Environmental and International Trade Effects of the EU Directive on Energy Tax Harmonization

Michael Kohlhaas, K. Schumacher, Jochen Diekmann, M. Cames and D. Schumacher

No 331275, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: In October 2003, the European Union introduced a Directive which widens the scope of the EU’s minimum taxation system from mineral oils to all energy products including coal, natural gas and electricity. It aims at reducing distortions that currently exist between Member States as well as between energy products. In addition, the Directive increases incentives to use energy more efficiently. This will lead to changes in the energy tax schemes in a number of countries, in particular some southern Member Countries (Greece, Spain, Portugal) and most of the Eastern European EU candidate countries. In this paper, we analyze the effects of the EU energy tax harmonization, with particular focus on the EU acceding Eastern European countries with GTAP-E, a computable general equilibrium model. We investigate the effects of the tax harmonization on overall economic growth and sectoral development. Special attention is paid to international trade in order to analyze if competitiveness concerns which have been frequently forwarded in the context of energy taxation are valid. Furthermore, the effect on energy consumption and emissions and thus the contribution to the EU’s climate change targets is analyzed.

Keywords: Resource/Energy Economics and Policy; Research Methods/Statistical Methods (search for similar items in EconPapers)
Pages: 27
Date: 2004
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Related works:
Working Paper: Economic, Environmental and International Trade Effects of the EU Directive on Energy Tax Harmonization (2010)
Working Paper: Economic, Environmental and International Trade Effects of the EU Directive on Energy Tax Harmonization (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:331275

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