Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/179312
Authors: 
Kirchner, Mathias
Sommer, Mark
Kettner-Marx, Claudia
Kletzan-Slamanig, Daniela
Köberl, Katharina
Kratena, Kurt
Year of Publication: 
2018
Series/Report no.: 
WIFO Working Papers 558
Abstract: 
We assess distributive, macroeconomic, and CO2 emission impacts of CO2 tax schemes in Austria by applying the macroeconomic Input-Output model DYNK[AUT]. The tax schemes analysed focus primarily on CO2 emissions not covered by the European Emission Trading System (ETS), applying different CO2 tax rates as well as tax compensation schemes. We perform comparative scenario analysis for our model's base year (i.e., short-term impacts). Our model simulations indicate that - without tax compensation - impacts on households can be regressive if measured as tax burden relative to income, and are found to be rather proportional if measured as tax burden relative to expenditure or as changes in total expenditure and income. Lower income households benefit more from tax compensations (lump sum payments), i.e., CO2 taxes with compensation measures for households lead to progressive tax burden impacts. Energy-related CO2 emissions decrease quite substantially in non-ETS sectors, although households react inelastic. Value added in most non-ETS industry and service sectors declines only slightly without tax compensation and commodity import shares are hardly affected. Decreasing employers' social contribution (i.e., lowering labour costs) mitigates negative impacts in most non-ETS industry and service sectors. GDP decreases very moderately without tax recycling, depending on the tax rate. Employment effects are similar but smaller. Tax recycling leads to negligible GDP impacts and increases employment. Our simulations thus suggest that CO2 taxes could be a crucial and socially acceptable element within a comprehensive set of policy instruments in order to contribute to achieving greenhouse- gas emission targets for non-ETS sectors in Austria.
Subjects: 
climate change
CO2 taxes
distributive impacts
macroeconomic modeling
JEL: 
C22
C63
C67
E12
E61
H23
Document Type: 
Working Paper
Social Media Mentions:

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.