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Footprint analysis and the incidence of emission taxes

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  • ten Raa, Thijs
  • Stahlie, Rob

Abstract

We show that the incidence of emission taxes on consumer income classes is proportional to the footprints of their respective consumption bundles. The dimensions of the footprints are industry by product, but the literature employs industry-by-industry input-output coefficients. We rectify footprint analysis by returning to the underlying national accounts, the use and make tables. Bringing in budget shares data of the different income classes (Engel curves), we show that the carbon dioxide footprint per euro expenditure decreases with income in the Netherlands. Our result renders an emission tax regressive and thus implies a tradeoff between environmental and income policies.

Suggested Citation

  • ten Raa, Thijs & Stahlie, Rob, 2024. "Footprint analysis and the incidence of emission taxes," Ecological Economics, Elsevier, vol. 224(C).
    • Handle: RePEc:eee:ecolec:v:224:y:2024:i:c:s0921800924001113
    DOI: 10.1016/j.ecolecon.2024.108214
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    References listed on IDEAS

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    1. Jos� M. Rueda-Cantuche, 2011. "Econometric Analysis Of European Carbon Dioxide Emissions Based On Rectangular Supply-Use Tables," Economic Systems Research, Taylor & Francis Journals, vol. 23(3), pages 261-280, May.
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    3. Fremstad, Anders & Paul, Mark, 2019. "The Impact of a Carbon Tax on Inequality," Ecological Economics, Elsevier, vol. 163(C), pages 88-97.
    4. Thijs ten Raa & Victoria Shestalova, 2021. "Supply-Use Framework for International Environmental Policy Analysis," World Scientific Book Chapters, in: Efficiency and Input-Output Analyses Theory and Applications, chapter 6, pages 91-117, World Scientific Publishing Co. Pte. Ltd..
    5. Pieter Kop Jansen & Thijs ten Raa, 2009. "The Choice of Model in the Construction of Input–Output Coefficients Matrices," World Scientific Book Chapters, in: Input–Output Economics: Theory And Applications Featuring Asian Economies, chapter 4, pages 47-66, World Scientific Publishing Co. Pte. Ltd..
    6. Joe Mattey & Thijs ten Raa, 2009. "Primary Versus Secondary Production Techniques in U.S. Manufacturing," World Scientific Book Chapters, in: Input–Output Economics: Theory And Applications Featuring Asian Economies, chapter 16, pages 285-305, World Scientific Publishing Co. Pte. Ltd..
    7. Zhao, Jiaxin & Mattauch, Linus, 2022. "When standards have better distributional consequences than carbon taxes," Journal of Environmental Economics and Management, Elsevier, vol. 116(C).
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    9. Bram Edens & Rutger Hoekstra & Daan Zult & Oscar Lemmers & Harry Wilting & Ronghao Wu, 2015. "A Method To Create Carbon Footprint Estimates Consistent With National Accounts," Economic Systems Research, Taylor & Francis Journals, vol. 27(4), pages 440-457, December.
    10. Creedy, John & Sleeman, Catherine, 2006. "Carbon taxation, prices and welfare in New Zealand," Ecological Economics, Elsevier, vol. 57(3), pages 333-345, May.
    11. Raa, Thijs ten & Wolff, Edward N., 1991. "Secondary products and the measurement of productivity growth," Regional Science and Urban Economics, Elsevier, vol. 21(4), pages 581-615, December.
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    Cited by:

    1. Claus Jacob, 2024. "Infinite Affluence on a Finite Planet," Sustainability, MDPI, vol. 16(18), pages 1-14, September.

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    More about this item

    Keywords

    Footprint analysis; Engel curves; Emission taxes; Regressivity;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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