Carbon taxation in Russia: Prospects for a double dividend and improved energy efficiency

Anton Orlov, Harald Grethe and Scott McDonald ()

Energy Economics, 2013, vol. 37, issue C, 128-140

Abstract: This study analyses the sectoral and macroeconomic impact of carbon taxes on the Russian economy, one of the world's most energy- and carbon-intensive economies, while assessing the hypothesis of a double dividend. Substituting carbon taxes for labour taxes can reduce GHG emissions and enhance welfare by improving the efficiency of the tax system — a strong double dividend. The analyses confirm, when capital is not internationally mobile, that a double dividend is likely to occur under (i) a high elasticity of labour supply, (ii) high elasticities of substitution between labour and the capital-energy aggregate, (iii) low elasticities of substitution between capital and energy. It is the tax-shifting effect between capital and labour that is crucial. In contrast, welfare losses resulting from the environmental tax reform may be substantial if capital is internationally mobile.

Keywords: Energy efficiency; Double dividend; Carbon taxes; Russia (search for similar items in EconPapers)
JEL-codes: C68 Q40 Q50 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (31)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:37:y:2013:i:c:p:128-140

DOI: 10.1016/j.eneco.2013.01.008

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