EconPapers    
Economics at your fingertips  
 

Effectiveness of a CO2 tax on industrial emissions

Cristian Mardones and Belén Flores

Energy Economics, 2018, vol. 71, issue C, 370-382

Abstract: This study quantifies the amount of taxes collected and the reduction in emissions that implementing a CO2 tax on industrial sources in Chile would generate. An optimization problem is used to simulate the situation that each source faces (of choosing the technology and fuel) in order to reduce the cost of the new tax. For this process, investments in boilers or dual burners have been considered, that allow for a change in fuel. The results indicate that taxes up to US$10/ton CO2 do not greatly modify the use of fuels in industrial sources. If taxes between US$10/ton CO2 and US$30/ton CO2 are implemented, then emissions are reduced rapidly. With taxes higher than US$30/ton CO2, emission reductions stagnate. It can be concluded that taxes that are too low or too high are effective in raising revenue but not in reducing emissions.

Keywords: Taxes; Emissions; CO2 (search for similar items in EconPapers)
JEL-codes: C61 Q42 Q52 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (26)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0140988318300999
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:71:y:2018:i:c:p:370-382

DOI: 10.1016/j.eneco.2018.03.018

Access Statistics for this article

Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

More articles in Energy Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2025-03-23
Handle: RePEc:eee:eneeco:v:71:y:2018:i:c:p:370-382