 The Carbon Tax, Ageing and Pension DeficitsPost-Print from HAL Abstract: Ageing increases the income of a carbon tax ceteris paribus since energy consumption rises with age, as macro and micro data show. Ageing also increases some public expenditures, notably those of pay-as-you-go (PAYG) pension systems. Accordingly, there may be a case for recycling a carbon tax in an ageing context so as to finance ageing-related public expenditures. This article studies the interacting effects on intergenerational equity and growth of such a recycling. It relies on a general equilibrium model with overlapping generations parameterised with empirical data. Several results emerge. Implementing a carbon tax fully recycled through higher lump-sum pensions weighs relatively more on the intertemporal welfare of young and future generations. A carbon tax fully recycled through lower social contributions financing the PAYG bolsters the wellbeing of young and future generations but weighs on the welfare of baby-boomers and older cohorts. The redistributive effects of recycling a carbon tax can depend significantly on the way used to balance the PAYG regime. Keywords: Carbon tax; Intergenerational redistribution; Overlapping generations; PAYG pension reform; General equilibrium (search for similar items in EconPapers) Published in Environmental Modeling & Assessment, 2016, 21 (3), ⟨10.1007/s10666-015-9482-2⟩ There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01251698 DOI: 10.1007/s10666-015-9482-2 Access Statistics for this paper More papers in Post-Print from HAL |
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