EconPapers    
Economics at your fingertips  
 

Economic and environmental effects of a CO2 tax in Latin American countries

Cristian Mardones () and Nicolas Baeza

Energy Policy, 2018, vol. 114, issue C, 262-273

Abstract: The environmental extension from the Leontief pricing model is used to simulate the economic and environmental effects of setting different CO2 tax rates in three Latin American countries (Brazil, Mexico and Chile). It considers a regulatory scenario in which the tax is applied only to emissions from the electricity sector and another scenario in which tax is applied to emissions from all economic sectors. The results show that the effects of a CO2 tax on sectoral prices and emissions in each country are very different for the same tax rate, but these effects are similar in each country when comparing both regulatory scenarios. This is explained by the composition (carbonization) of the electric generation (and energy matrix) of each of the countries, which significantly affects the effectiveness of CO2 taxes to reduce emissions. In addition, the economic sectors most affected by the different regulatory scenarios are similar in all countries.

Keywords: Leontief price model; Environmental tax; CO2 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301421517308169
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:enepol:v:114:y:2018:i:c:p:262-273

Access Statistics for this article

Energy Policy is currently edited by N. France

More articles in Energy Policy from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-02-09
Handle: RePEc:eee:enepol:v:114:y:2018:i:c:p:262-273