The vertical and horizontal distributive effects of energy taxes
Thomas Douenne ()
Additional contact information
Thomas Douenne: Paris School of Economics
No 2018.10, Working Papers from FAERE - French Association of Environmental and Resource Economists
This paper proposes a micro-simulation assessment of the distributional impacts of the French carbon tax. It shows that the policy is regressive, but could be made progressive by redistributing the revenue through a flat-recycling. However, it would still generate large horizontal distributive effects and harm an important share of low-income households. The determinants of the tax incidence are characterized precisely, and alternative targeted transfers are simulated on this basis. The paper shows that given the importance of unobserved heterogeneity in the determinants of energy consumption, horizontal distributive effects are much more difficult to tackle than vertical ones.
Keywords: Energy taxes; Distributional effects; Demand-System; Micro-simulation (search for similar items in EconPapers)
JEL-codes: D12 H23 I32 (search for similar items in EconPapers)
Pages: 41 pages
New Economics Papers: this item is included in nep-cmp, nep-ene, nep-eur, nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
http://faere.fr/pub/WorkingPapers/Douenne_FAERE_WP2018.10.pdf First version, 2018 (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:fae:wpaper:2018.10
Access Statistics for this paper
More papers in Working Papers from FAERE - French Association of Environmental and Resource Economists Contact information at EDIRC.
Bibliographic data for series maintained by Mireille Chiroleu-Assouline ().