Energy Price and Redistribution in Czech Republic

Norbert Ladoux (norbert.ladoux@tse-fr.eu) and Milan Ščasný (milan.scasny@czp.cuni.cz)

No 14-527, TSE Working Papers from Toulouse School of Economics (TSE)

Abstract: This paper studies environmental taxation in a Mirrlees setting when energy, a polluting good, is used both as a factor of production and a final consumption good. The model is calibrated for the Czech economy. We study two different tax systems. Both consider a non-linear income tax but the first one considers a linear energy tax, while the second one allows for a non-linear taxation of energy. We show that: (i) households' energy consumption should be subsidized except if the environmental external costs of energy consumption are sufficiently high (ii) The subsidy applied to energy consumption should decrease with income.

Keywords: energy tax; Pigouvian tax; redistributive concerns (search for similar items in EconPapers)
JEL-codes: H21 H23 (search for similar items in EconPapers)
Date: 2014-05
New Economics Papers: this item is included in nep-ene, nep-env and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.tse-fr.eu/sites/default/files/medias/doc/wp/env/wp_tse_527.pdf Full text (application/pdf)

Related works:
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:tse:wpaper:28550

Access Statistics for this paper

More papers in TSE Working Papers from Toulouse School of Economics (TSE) Contact information at EDIRC.
Bibliographic data for series maintained by (com@tse-fr.eu).