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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2024_Ollier-DeCara_Distributional-consequences-of-emission-tax-and-rebate-schemes.pdf | 4.4 MB | Adobe PDF | View/Open |
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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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