EconPapers    
Economics at your fingertips  
 

Energy Efficiency Standards Are More Regressive Than Energy Taxes: Theory and Evidence

Arik Levinson ()

No gueconwpa~18-18-03, Working Papers from Georgetown University, Department of Economics

Abstract: Economists endorse taxes as a cost-effective means of reducing pollution. But policymakers raise concerns about their regressivity, or disproportional burden on poorer families, preferring instead to regulate energy efficiency. I first show that in theory, energy efficiency standards are more regressive than energy taxes, not less. I then provide an example using data on automobiles in the United States. Taxing gas would be less regressive than regulating the fuel economy of cars if the two policies are compared on a revenue-equivalent basis.

Keywords: Pigouvian tax; performance standards; pollution (search for similar items in EconPapers)
JEL-codes: H23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ene, nep-pub, nep-reg and nep-tre
Date: 2018-08-15
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://faculty.georgetown.edu/aml6/pdfs&zips/RegressiveMandates.pdf Full text (application/pdf)
None

Related works:
Working Paper: Energy Efficiency Standards Are More Regressive Than Energy Taxes: Theory and Evidence (2017) Downloads
Chapter: Energy Efficiency Standards Are More Regressive Than Energy Taxes: Theory and Evidence (2016)
Working Paper: Energy Efficiency Standards Are More Regressive Than Energy Taxes: Theory and Evidence (2016) Downloads
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:geo:guwopa:gueconwpa~18-18-03

Ordering information: This working paper can be ordered from
Roger Lagunoff Professor of Economics Georgetown University Department of Economics Washington, DC 20057-1036
http://econ.georgetown.edu/

Access Statistics for this paper

More papers in Working Papers from Georgetown University, Department of Economics Georgetown University Department of Economics Washington, DC 20057-1036.
Bibliographic data for series maintained by Marcia Suss ().

 
Page updated 2019-04-12
Handle: RePEc:geo:guwopa:gueconwpa~18-18-03