Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/192132 
Year of Publication: 
1995
Series/Report no.: 
Discussion Papers No. 148
Publisher: 
Statistics Norway, Research Department, Oslo
Abstract: 
The welfare effects of introducing taxes on emissions of carbon dioxide is analysed within an empirical general equilibrium model of the Norwegian economy. A CO2 tax regime where we aim at stabilising the CO2 emissions at the 1990 emission level in 2020 is compared to a reference scenario without such taxes. In the simulations introduction of CO2 taxes reduces gross domestic product, but increases net national real disposable income, private consumption and money metric utility. This difference in sign is due to a positive terms of trade effect, some of the CO2 taxes will be paid by foreigners through exports. The welfare effects differ from household to household depending on the composition of their total consumption. Poor households are less favourably affected than rich households, due to smaller budget shares for the rich households on consumer goods which imply relatively much CO2 emissions.
Subjects: 
CO2 taxes
general equilibrium model
money metric welfare
terms of trade
JEL: 
E1
H3
I3
Q4
Document Type: 
Working Paper
Document Version: 
Digitized Version

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