Please use this identifier to cite or link to this item:
Beznoska, Martin
Cludius, Johanna
Steiner, Viktor
Year of Publication: 
Series/Report no.: 
DIW Discussion Papers 1227
We calculate the expected incidence of the European Union Emissions Trading System (EU-ETS) using industry and household-level data. By combining data on direct CO2 emissions by production sector from the German Environmental Account with the German Input-Output Accounts, we calculate the CO2 intensity of each sector covered by the EU-ETS. We focus on the impact of price increases in the electricity sector, both directly in the form of higher electricity bills for consumers and indirectly through products that use electricity as an input to production. Taking into account behavioral effects derived from an estimated consumer-demand system, we provide incidence calculations on the basis of the German Income and Expenditure Survey for the year 2008 data updated to 2013. We confirm the ex-ante expected regressive effect, which is, however, both rather small in magnitude and can be offset and even more than offset by revenue recycling, in particular the reduction of social security contributions on labor income.
European Union Emissions Trading System
tax incidence
revenue recycling
Almost Ideal Demand System
Document Type: 
Working Paper

Files in This Item:
721.03 kB

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