Optimal Energy Taxation in Cities

Rainald Borck and Jan Brueckner

No 5711, CESifo Working Paper Series from CESifo

Abstract: This paper presents the first investigation of the effects of optimal energy taxation in an urban spatial setting. Rather than exploring the effects of a carbon tax, our approach is to derive the supplements to existing taxes that are needed to support the social optimum. We then analyze the effects of these taxes on urban spatial structure. Emissions are generated by housing consumption and commute trips, and the optimal tax structure has a tax on commuting, housing floor space, and land. These taxes reduce the extent of commuting and the level of housing consumption while increasing building heights, generating a more-compact city with a lower level of emissions per capita.

Keywords: emissions; energy; taxation; monocentric city (search for similar items in EconPapers)
JEL-codes: Q58 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Related works:
Journal Article: Optimal Energy Taxation in Cities (2018)
Working Paper: Optimal energy taxation in cities (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_5711

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