On the income elasticity and regressivity of emission taxation

Tingmingke Lu

Economics Letters, 2023, vol. 223, issue C

Abstract: Examining how tax expenditures change with income, I compare the regressivity of fuel taxes and fuel economy-based vehicle purchase taxes. In a model incorporating car usage heterogeneity, the relative regressivity depends on the sign of the income elasticity of driving.

Keywords: Environmental tax and subsidy; Distributional effects; Demand estimation (search for similar items in EconPapers)
JEL-codes: H23 Q48 R21 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:223:y:2023:i:c:s0165176522004438

DOI: 10.1016/j.econlet.2022.110969

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