Arbeitspapier
Optimal Carbon Taxation and Horizontal Equity: A Welfare-Theoretic Approach with Application to German Household Data
We develop a model of optimal carbon taxation and redistribution taking into account horizontal equity concerns by considering heterogeneous energy efficiencies. By deriving first- and second-best rules for policy instruments including carbon taxes, transfers and energy subsidies, we then investigate analytically how horizontal equity is considered in the social welfare maximizing tax structure. We calibrate the model to German household data and a 30 percent emission reduction goal. Our results show that energy-intensive households should receive more redistributive resources than energy-efficient households if and only if social inequality aversion is sufficiently high. We further find that redistribution of carbon tax revenue via household-specific transfers is the first-best policy. Equal per-capita transfers do not suffer from informational problems, but increase mitigation costs by around 15 percent compared to the first-best for unity inequality aversion. Adding renewable energy subsidies or non-linear energy subsidies, reduces mitigation costs further without relying on observability of households’ energy efficiency.
- Sprache
-
Englisch
- Erschienen in
-
Series: CESifo Working Paper ; No. 8931
- Klassifikation
-
Wirtschaft
Taxation and Subsidies: Efficiency; Optimal Taxation
Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
Climate; Natural Disasters and Their Management; Global Warming
- Thema
-
carbon price
horizontal equity
redistribution
renewable energy subsidies
climate policy
just transition
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Hänsel, Martin C.
Franks, Max
Kalkuhl, Matthias
Edenhofer, Ottmar
- Ereignis
-
Veröffentlichung
- (wer)
-
Center for Economic Studies and Ifo Institute (CESifo)
- (wo)
-
Munich
- (wann)
-
2021
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Hänsel, Martin C.
- Franks, Max
- Kalkuhl, Matthias
- Edenhofer, Ottmar
- Center for Economic Studies and Ifo Institute (CESifo)
Entstanden
- 2021
Ähnliche Objekte (12)
Carbon Pricing and Revenue Recycling: An Overview of Vertical and Horizontal Equity Effects for Germany
Klimapolitik im globalen, europäischen und nationalen Rahmen : Workshop für Journalisten vor dem Klimagipfel in Doha, Potsdam, 01. November 2012
Deforestation, Land Taxes and Development
The Atmosphere as a Global Common: from a Tragedy to a Drama : Max-Planck Institute of Economics, Jena, 11 January 2012
Globale Klima- und Energiepolitik nach Durban : Osnabrück, 08. Mai 2012
Pokern um die Zukunft : Das Schicksal der Global Commons [[Elektronische Ressource]] : Hochschultage Ökosoziale Marktwirtschaft, TU Berlin, Berlin, 20. November 2012
Rent and redistribution : the welfare implications of financing low-carbon public investment
Pigou in the 21st Century: a tribute on the occasion of the 100th anniversary of the publication of The Economics of Welfare
Discretionary Intervention Destabilizes the EU Emissions Trading System: Evidence and Recommendations for a Rule-Based Cap Adjustment
The Globalization Paradox Revisited
The Calculus of Climate Policy. Carbon Pricing and Technology Policies for Climate Change Mitigation
Growth, Degrowth, or Green Growth? In Search of a Better Paradigm : Climate Lecture, Berlin, 3rd December 2012
Carbon Pricing and Revenue Recycling: An Overview of Vertical and Horizontal Equity Effects for Germany
Klimapolitik im globalen, europäischen und nationalen Rahmen : Workshop für Journalisten vor dem Klimagipfel in Doha, Potsdam, 01. November 2012
Deforestation, Land Taxes and Development
The Atmosphere as a Global Common: from a Tragedy to a Drama : Max-Planck Institute of Economics, Jena, 11 January 2012
Globale Klima- und Energiepolitik nach Durban : Osnabrück, 08. Mai 2012
Pokern um die Zukunft : Das Schicksal der Global Commons [[Elektronische Ressource]] : Hochschultage Ökosoziale Marktwirtschaft, TU Berlin, Berlin, 20. November 2012
Rent and redistribution : the welfare implications of financing low-carbon public investment
Pigou in the 21st Century: a tribute on the occasion of the 100th anniversary of the publication of The Economics of Welfare
Discretionary Intervention Destabilizes the EU Emissions Trading System: Evidence and Recommendations for a Rule-Based Cap Adjustment
The Globalization Paradox Revisited
The Calculus of Climate Policy. Carbon Pricing and Technology Policies for Climate Change Mitigation
Growth, Degrowth, or Green Growth? In Search of a Better Paradigm : Climate Lecture, Berlin, 3rd December 2012
Carbon Pricing and Revenue Recycling: An Overview of Vertical and Horizontal Equity Effects for Germany
Klimapolitik im globalen, europäischen und nationalen Rahmen : Workshop für Journalisten vor dem Klimagipfel in Doha, Potsdam, 01. November 2012
Deforestation, Land Taxes and Development
The Atmosphere as a Global Common: from a Tragedy to a Drama : Max-Planck Institute of Economics, Jena, 11 January 2012
Globale Klima- und Energiepolitik nach Durban : Osnabrück, 08. Mai 2012
Pokern um die Zukunft : Das Schicksal der Global Commons [[Elektronische Ressource]] : Hochschultage Ökosoziale Marktwirtschaft, TU Berlin, Berlin, 20. November 2012
Rent and redistribution : the welfare implications of financing low-carbon public investment
Pigou in the 21st Century: a tribute on the occasion of the 100th anniversary of the publication of The Economics of Welfare
Discretionary Intervention Destabilizes the EU Emissions Trading System: Evidence and Recommendations for a Rule-Based Cap Adjustment
The Globalization Paradox Revisited
The Calculus of Climate Policy. Carbon Pricing and Technology Policies for Climate Change Mitigation