Carbon Tax Burdens on Low-Income Households: A Reason for Delaying Climate Policy?

Ian Parry

No 5482, CESifo Working Paper Series from CESifo

Abstract: This paper discusses techniques for measuring the incidence of carbon taxes across different household income groups and provides some cross-country estimates of these effects for selected advanced countries. The general message of this paper is that distributional concerns should not necessarily hold up carbon pricing. Energy price impacts may be less regressive than often supposed and there are ample opportunities in advanced countries for adjusting tax and benefit schedules to alter the overall incidence of a carbon tax reform. Insofar as possible however, using carbon tax revenues in ways that enhance economic efficiency is critical for containing overall costs to the economy.

Keywords: carbon tax; distributional incidence; fiscal reform; climate change; revenue recycling (search for similar items in EconPapers)
JEL-codes: H22 Q52 Q54 Q58 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_5482

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