“Green” fuel tax on private transportation services and subsidies to electric energy. A model-based assessment for the main European countries

Anna Bartocci and Massimiliano Pisani

Energy Economics, 2013, vol. 40, issue S1, S32-S57

Abstract: This paper evaluates the environmental and macroeconomic implications for France, Germany, Italy and Spain of taxing motor vehicle fuels for private transportation, a sector not subject to the Emissions Trading System, so as to reduce taxes on electricity consumption and increase subsidies to renewable sources of electricity generation. The assessment is based on a dynamic general equilibrium model calibrated for each of the four countries. The results suggest that the measures posited will reduce carbon dioxide emissions in the transportation sector and favor the development of electricity generation from renewable sources, thus limiting the growth of emissions from electricity generation. The measures do not jeopardize economic activity. The results are robust whether implementation is unilateral in one country or simultaneous throughout the EU.

Keywords: Environmental policies; Dynamic general equilibrium modeling; European Union (search for similar items in EconPapers)
JEL-codes: Q43 Q48 Q56 Q58 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:40:y:2013:i:s1:p:s32-s57

DOI: 10.1016/j.eneco.2013.09.019

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