Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/191518 
Year of Publication: 
2018
Series/Report no.: 
IRENE Working Paper No. 18-09
Publisher: 
University of Neuchâtel, Institute of Economic Research (IRENE), Neuchâtel
Abstract: 
This paper investigates the impacts of the Swiss CO2 levy on households' heating demand. Using a difference-in-differences approach combined with inverse probability of treatment weighting, we test whether the 2016 carbon tax rate increase had a short-term impact on Swiss households' heating consumption and propensity to renovate. Micro-level data from the 2016 and 2017 waves of the Swiss Household Energy Demand Survey (SHEDS) are used to estimate the models. In both cases, no statistically significant effect can be detected across a variety of specifications. Even though further research is needed to investigate possible long-run impacts, our findings question the relevance of this policy instrument under its current form to lower households' greenhouse gas emissions. Additional measures might be implemented to improve its efficiency.
Subjects: 
Carbon tax
energy consumption
fossil fuel
policy evaluation
inverse probability of treatment weighting
difference-in-differences
JEL: 
C21
C23
H23
Q41
Q58
Document Type: 
Working Paper

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