Please use this identifier to cite or link to this item: https://doi.org/10.21256/zhaw-30285
Publication type: Article in scientific journal
Type of review: Peer review (publication)
Title: Give and take : an analysis of the distributional consequences of emission tax-and-rebate schemes with an application to greenhouse gas emissions from European agriculture
Authors: Ollier, Maxime
De Cara, Stéphane
et. al: No
DOI: 10.1016/j.ecolecon.2024.108154
10.21256/zhaw-30285
Published in: Ecological Economics
Volume(Issue): 219
Issue: 108154
Issue Date: May-2024
Publisher / Ed. Institution: Elsevier
ISSN: 0921-8009
1873-6106
Language: English
Subjects: Climate policy; Emission tax-and-rebate; Income inequality; European agriculture
Subject (DDC): 363: Environmental and security problems
Abstract: The potential regressivity of an emission tax is a major obstacle to the implementation of this otherwise cost-effective instrument. Rebates may help overcome this difficulty. Their distributional consequences depend on their design and the distribution of agents’ initial emissions and abatement costs. We develop a stylized analytical framework to derive general conditions under which a tax-and-rebate scheme increases income inequality and compare the performances of various rebate designs. This framework is applied to the regulation of greenhouse gas emissions from European agriculture. An emission tax with no rebate is found to substantially reduce agricultural emissions (by approximately −15% for a 100 €/tCO2eq tax), but also strongly affect the total sector income (approximately −20% with the same tax rate) as well as increase income inequality. A flat rebate considerably reduces income inequality relative to pre-policy levels. For the same impacts on aggregate income and budget, a rebate proportional to initial emissions leaves pre-existing inequality virtually unchanged. A well-designed rebate can thus be critical for the acceptability of climate policy instruments.
URI: https://digitalcollection.zhaw.ch/handle/11475/30285
Fulltext version: Published version
License (according to publishing contract): CC BY 4.0: Attribution 4.0 International
Departement: Life Sciences and Facility Management
Organisational Unit: Institute of Natural Resource Sciences (IUNR)
Appears in collections:Publikationen Life Sciences und Facility Management

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Ollier, M., & De Cara, S. (2024). Give and take : an analysis of the distributional consequences of emission tax-and-rebate schemes with an application to greenhouse gas emissions from European agriculture. Ecological Economics, 219(108154). https://doi.org/10.1016/j.ecolecon.2024.108154
Ollier, M. and De Cara, S. (2024) ‘Give and take : an analysis of the distributional consequences of emission tax-and-rebate schemes with an application to greenhouse gas emissions from European agriculture’, Ecological Economics, 219(108154). Available at: https://doi.org/10.1016/j.ecolecon.2024.108154.
M. Ollier and S. De Cara, “Give and take : an analysis of the distributional consequences of emission tax-and-rebate schemes with an application to greenhouse gas emissions from European agriculture,” Ecological Economics, vol. 219, no. 108154, May 2024, doi: 10.1016/j.ecolecon.2024.108154.
OLLIER, Maxime und Stéphane DE CARA, 2024. Give and take : an analysis of the distributional consequences of emission tax-and-rebate schemes with an application to greenhouse gas emissions from European agriculture. Ecological Economics. Mai 2024. Bd. 219, Nr. 108154. DOI 10.1016/j.ecolecon.2024.108154
Ollier, Maxime, and Stéphane De Cara. 2024. “Give and Take : An Analysis of the Distributional Consequences of Emission Tax-and-Rebate Schemes with an Application to Greenhouse Gas Emissions from European Agriculture.” Ecological Economics 219 (108154). https://doi.org/10.1016/j.ecolecon.2024.108154.
Ollier, Maxime, and Stéphane De Cara. “Give and Take : An Analysis of the Distributional Consequences of Emission Tax-and-Rebate Schemes with an Application to Greenhouse Gas Emissions from European Agriculture.” Ecological Economics, vol. 219, no. 108154, May 2024, https://doi.org/10.1016/j.ecolecon.2024.108154.


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