Arbeitspapier
Something from Nothing: Estimating Consumption Rates Using Propensity Scores, with Application to Emissions Reduction Policies
Consumption surveys often record zero purchases of a good because of a short observation window. Only mean consumption rates can then be inferred. We show that propensity scores can be used to estimate each unit's consumption rate, revealing the distribution. We demonstrate the method using the UK National Travel Survey, in which c.40% of motorist households purchase no fuel. Estimated consumption rates are plausible judging by households' annual mileages, and highly skewed. We apply the same approach to estimate CO2 emissions and direct outcomes of a carbon cap or tax. Analysis of such policies based solely on means appears to have a negative bias, because of skewness of the underlying distributions. The regressiveness of a simple tax or cap is overstated, and redistributive features of a revenue-neutral policy are understated.
- Language
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Englisch
- Bibliographic citation
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Series: IZA Discussion Papers ; No. 9707
- Classification
-
Wirtschaft
Estimation: General
Microeconomic Policy: Formulation, Implementation, and Evaluation
Consumer Economics: Empirical Analysis
Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- Subject
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emissions reduction
fuel consumption
infrequent purchase
propensity score matching
surveys
- Event
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Geistige Schöpfung
- (who)
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Bardsley, Nicholas
Büchs, Milena
Schnepf, Sylke V.
- Event
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Veröffentlichung
- (who)
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Institute for the Study of Labor (IZA)
- (where)
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Bonn
- (when)
-
2016
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Bardsley, Nicholas
- Büchs, Milena
- Schnepf, Sylke V.
- Institute for the Study of Labor (IZA)
Time of origin
- 2016
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