Diese Präsentation wurde erfolgreich gemeldet.
Wir verwenden Ihre LinkedIn Profilangaben und Informationen zu Ihren Aktivitäten, um Anzeigen zu personalisieren und Ihnen relevantere Inhalte anzuzeigen. Sie können Ihre Anzeigeneinstellungen jederzeit ändern.
Distributional implications of
carbon and environmental
taxation: a case study for Spain
Xaquín García-Muros
Global Climate
Change (GCC)
Local Air Pollution
(LAP)
Two significant, interrelated environmental problems:
“LAP control combined with GCC policy creates an extra early-kick-
off for the transition towards climate friendly energy ...
Who pay mitigation policies?
Most studies find regressivity in GCC
related taxes, but this conclusion cannot be
taken as a...
Here, we conduct a distributional
analysis of an LAP tax (based on the
internalization of the external costs of
several po...
Environmental
taxes allocated to
producers
∆ Consumer
prices
Income
impacts of
households
INPUT-OUTPUT
MODEL
DEMAND MODEL
...
Scenarios Description Tax Equivalent
GCC tax Tax on CO2 emissions levied on
producers.
€25/t CO2
LAP Tax Tax on NH3, NOX, ...
0.00 2.50 5.00 7.50 10.00
Electricity, water and gas production
Food Sector
Energy sector
Industries
Mining and quarrying
...
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
1.40%
1 2 3 4 5 6 7 8 9 10
LAP tax GCC tax
Cost impacts change (EV, %) by
expend...
The importance of consumption pattern
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1 2 3 4 5 6 7 8 9 10
Other services
Rest...
Second exercise:
Revenue recycling
-1.5 0.0 1.5 3.0 4.5 6.0 7.5 9.0
Electricity, water and gas production
Food Sector
Energy sector
Industries
Mining and qua...
0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
0.60%
0.70%
0.80%
1 2 3 4 5 6 7 8 9 10
LAP tax GCC tax
Cost impacts after recycling pe...
Conclusion
•LAP taxes are more regressive than GCC taxes. LAP is more linked to
goods that are consumed by low incomes gro...
•Although it was thought that LAP taxes might be easier to implement
because their effects (mainly on health) are felt mor...
Thanks For Your
Attention!!
Nächste SlideShare
Wird geladen in …5
×

Distributional implications of carbon and environmental taxation a case study for Spain

Xaquin Garcia-Muros (BC3)
CECILIA2050 Workshop Bilbao, 23rd October 2015.
"EU CLIMATE POLICIES TOWARDS A LOW-CARBON ECONOMY"

  • Loggen Sie sich ein, um Kommentare anzuzeigen.

  • Gehören Sie zu den Ersten, denen das gefällt!

Distributional implications of carbon and environmental taxation a case study for Spain

  1. 1. Distributional implications of carbon and environmental taxation: a case study for Spain Xaquín García-Muros
  2. 2. Global Climate Change (GCC) Local Air Pollution (LAP) Two significant, interrelated environmental problems:
  3. 3. “LAP control combined with GCC policy creates an extra early-kick- off for the transition towards climate friendly energy supply” Bollen et al., 2009, page 179
  4. 4. Who pay mitigation policies? Most studies find regressivity in GCC related taxes, but this conclusion cannot be taken as a rule because it depends on the case study. GCC tax LAP Tax
  5. 5. Here, we conduct a distributional analysis of an LAP tax (based on the internalization of the external costs of several pollutants) and compare it in a compressive way with a GCC tax (tax on CO2) The distributional implications of a revenue- neutral tax reform are also explored.
  6. 6. Environmental taxes allocated to producers ∆ Consumer prices Income impacts of households INPUT-OUTPUT MODEL DEMAND MODEL (AIDS) Methodology
  7. 7. Scenarios Description Tax Equivalent GCC tax Tax on CO2 emissions levied on producers. €25/t CO2 LAP Tax Tax on NH3, NOX, SO2, NMVOC, and PM10 emissions levied on producers. We use the external cost of CASES project but only internalize 47.2% of external costs Revenue-Recycling Reduction in social security contributions paid by employers 7.5% reduction in SS contributions Scenarios
  8. 8. 0.00 2.50 5.00 7.50 10.00 Electricity, water and gas production Food Sector Energy sector Industries Mining and quarrying Sanitary and vetinary activities; social services Real estate activities and entrepreneurial services Education Financial intermediation Homes that employ domestic staff top5Bottom5 GCC tax LAP tax Change (%) in production prices. Top and bottom sectors
  9. 9. 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1 2 3 4 5 6 7 8 9 10 LAP tax GCC tax Cost impacts change (EV, %) by expenditure deciles
  10. 10. The importance of consumption pattern 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1 2 3 4 5 6 7 8 9 10 Other services Restaurants and hotels Education Leisure and culture Communication Transport Health Home furnishing and home maintenance House Clothing and footwear Alcoholic beverages, tobacco and narcotic Food
  11. 11. Second exercise: Revenue recycling
  12. 12. -1.5 0.0 1.5 3.0 4.5 6.0 7.5 9.0 Electricity, water and gas production Food Sector Energy sector Industries Mining and quarrying Sanitary and vetinary activities; social services Real estate activities and entrepreneurial services Education Financial intermediation Homes that employ domestic staff top5Bottom5 GCC tax LAP tax The impact of revenue recycling on price change
  13. 13. 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 1 2 3 4 5 6 7 8 9 10 LAP tax GCC tax Cost impacts after recycling per expenditure group
  14. 14. Conclusion •LAP taxes are more regressive than GCC taxes. LAP is more linked to goods that are consumed by low incomes groups than GCC taxes, where its potential regressive effect is compensated by the higher consumption of transport and energy of the higher income groups. •The result does not improve with the revenue-recycling effect because, again, the beneficiaries of this policy are labour-intensive and non- polluting goods that are consumed proportionally more by high income groups. •Although these results are of course an empirical matter, they can be extrapolated to countries with similar production and consumption profiles.
  15. 15. •Although it was thought that LAP taxes might be easier to implement because their effects (mainly on health) are felt more immediately by citizens and by low-income households than those of GCC taxes, this may not be the case if the distributional issue is factored into the policy maker’s equation •If it is wished to correct the distributional effect of this type of tax reform the standard approach, i.e. reducing taxes on labor, may not improve the distributional effect. However given that the overall regressivity of these taxes is low, various specific combinations of policies could be design to compensate the households or groups that are most affected. Policy implications:
  16. 16. Thanks For Your Attention!!

×