Analytical General Equilibrium Effects of Energy Policy on Output and Factor Prices

Don Fullerton () and Garth Heutel

No 15788, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Using an analytical general equilibrium model, we find closed form solutions for the effect of energy policy on factor prices and output prices. We calibrate the model to the US economy, and we consider a tax on carbon. By looking at expenditure and income patterns across household groups, we quantify the uses-side and sources-side incidence of the tax. When households are categorized either by annual income or by total annual consumption as a proxy for permanent income, the uses-side incidence is regressive. This result is robust to sensitivity analysis over various parameter values. The sources-side incidence is also regressive, but this result is sensitive to parameter values. Incidence results across regions are also presented.

JEL-codes: H2 Q5 (search for similar items in EconPapers)
Date: 2010-02
New Economics Papers: this item is included in nep-ene
Note: EEE PE
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (28)

Published as Don Fullerton & Garth Heutel, 2011. "Analytical General Equilibrium Effects of Energy Policy on Output and Factor Prices," The B.E. Journal of Economic Analysis & Policy, Berkeley Electronic Press, vol. 10(2), pages 15.

Downloads: (external link)
http://www.nber.org/papers/w15788.pdf (application/pdf)

Related works:
Journal Article: Analytical General Equilibrium Effects of Energy Policy on Output and Factor Prices (2011)
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:nbr:nberwo:15788

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w15788

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().