IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v19y1994i2p211-226.html
   My bibliography  Save this article

The effects of an increase in the motor fuels excise tax on the U.S. economy

Author

Listed:
  • Boyd, Roy
  • Uri, Noel D.

Abstract

We investigate the impact of raising the excise tax on motor fuels on the U.S. economy in general and the agricultural sectors in particular. The approach used in the analysis consists of a computable general equilibrium model composed of 14 producing sectors, 14 consuming sectors, six household categories classified by income, and a government. The results suggest that a $0.50 per gallon increase in the tax would result in lower output by the producing sectors by about 0.43%, a reduction in the consumption of goods and services by about 0.75%, and a reduction in welfare by about 1.10%. The government would realize an increase in revenue of about 2.2%. The agricultural sectors would be minimally impacted. Output in the program crops sector will rise by 0.10%, output in the livestock sector will increase by 0.18%, output in the all other agricultural commodities sector will expand by 0.01%, and output in the forestry sector will rise by 0.03%. When subjected to a sensitivity analysis, the results are reasonably robust with regard to the assumption of the values of the substitution elasticities.

Suggested Citation

  • Boyd, Roy & Uri, Noel D., 1994. "The effects of an increase in the motor fuels excise tax on the U.S. economy," Energy, Elsevier, vol. 19(2), pages 211-226.
    • Handle: RePEc:eee:energy:v:19:y:1994:i:2:p:211-226
    DOI: 10.1016/0360-5442(94)90061-2
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/0360544294900612
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/0360-5442(94)90061-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Abbott, Philip C., 1984. "Foreign Exchange Constraints to Trade and Development," Foreign Agricultural Economic Report (FAER) 147529, United States Department of Agriculture, Economic Research Service.
    2. Shoven,John B. & Whalley,John, 1992. "Applying General Equilibrium," Cambridge Books, Cambridge University Press, number 9780521266550, October.
    3. Ballard, Charles L. & Fullerton, Don & Shoven, John B. & Whalley, John, 2009. "A General Equilibrium Model for Tax Policy Evaluation," National Bureau of Economic Research Books, University of Chicago Press, number 9780226036335.
    4. Charles L. Ballard & Don Fullerton & John B. Shoven & John Whalley, 1985. "Introduction to "A General Equilibrium Model for Tax Policy Evaluation"," NBER Chapters, in: A General Equilibrium Model for Tax Policy Evaluation, pages 1-5, National Bureau of Economic Research, Inc.
    5. Deaton,Angus & Muellbauer,John, 1980. "Economics and Consumer Behavior," Cambridge Books, Cambridge University Press, number 9780521296762, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Noel D. Uri & Roy Boyd, 1997. "The Effects of Reducing the Motor Fuels Excise Tax on Agriculture in the United States," Energy & Environment, , vol. 8(1), pages 45-63, March.
    2. Uri, Noel D. & Boyd, Roy, 1998. "Aggregate impacts of the proposed reduction in the motor fuels excise tax in the United States1," Energy Economics, Elsevier, vol. 20(3), pages 309-323, June.
    3. Govinda R. Timilsina & Ram M. Shrestha, 2002. "General equilibrium analysis of economic and environmental effects of carbon tax in a developing country: case of Thailand," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 5(3), pages 179-211, September.
    4. Mark Partridge & Dan Rickman, 2010. "Computable General Equilibrium (CGE) Modelling for Regional Economic Development Analysis," Regional Studies, Taylor & Francis Journals, vol. 44(10), pages 1311-1328.
    5. Zhai, Fan, 2008. "Armington Meets Melitz: Introducing Firm Heterogeneity in a Global CGE Model of Trade," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 23, pages 575-604.
    6. Peichl, Andreas, 2008. "The benefits of linking CGE and Microsimulation Models - Evidence from a Flat Tax analysis," FiFo Discussion Papers - Finanzwissenschaftliche Diskussionsbeiträge 08-6, University of Cologne, FiFo Institute for Public Economics.
    7. Wolfgang Eggert & Andreas Haufler, 1998. "When Do Small Countries Win Tax Wars?," Public Finance Review, , vol. 26(4), pages 327-361, July.
    8. Keshab Bhattarai, 2017. "Welfare and Distributional Impacts of Financial Liberalization in an Open Economy: Lessons from a Multi-Sectoral Dynamic CGE Model for Nepal," International Business Research, Canadian Center of Science and Education, vol. 10(1), pages 181-198, January.
    9. Govinda Timilsina & Ram Shrestha, 2002. "General equilibrium analysis of economic and environmental effects of carbon tax in a developing country: case of Thailand," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 5(3), pages 179-211, September.
    10. Chang K. Seung & Michael G. Dalton & André E. Punt & Dusanka Poljak & Robert Foy, 2015. "Economic Impacts Of Changes In An Alaska Crab Fishery From Ocean Acidification," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 6(04), pages 1-35, November.
    11. Brücker, Herbert & Kohlhaas, Michael, 2004. "International Migration to Germany: A CGE-Analysis of Labour Market Impact," Conference papers 331276, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    12. Boyd, Roy & Doroodian, Khosrow & Power, Amy, 1996. "The impact of removing the sugar quota on the U.S. economy: A general equilibrium analysis," Journal of Policy Modeling, Elsevier, vol. 18(2), pages 185-201, April.
    13. Michael FEIL, 2010. "Forecasting Medium-Term Distributional Effects of the Economic Crisis: A CGE-Microsimulation Approach," EcoMod2010 259600056, EcoMod.
    14. Bohringer, Christoph & Boeters, Stefan & Feil, Michael, 2005. "Taxation and unemployment: an applied general equilibrium approach," Economic Modelling, Elsevier, vol. 22(1), pages 81-108, January.
    15. Jan Brůha, 2002. "Aplikované modely všeobecné rovnováhy [Applied general equilibrium models]," Politická ekonomie, Prague University of Economics and Business, vol. 2002(3).
    16. Tourinho, Octavio Augusto Fontes & Alves, Yann Le Boulluec & Silva, Napoleão Luiz Costa da, 2010. "Implicações Econômicas da Reforma Tributária: Análise com um Modelo CGE," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 64(3), September.
    17. Zeelenberg, Kees, 1988. "Elasticities under multi-stage budgeting," MPRA Paper 90353, University Library of Munich, Germany.
    18. Isaac Dadson & Ryuta Ray Kato, 2015. "Remittances and the Redistributive Tax Policy in Ghana: A Computable General Equilibrium Approach," Working Papers EMS_2015_05, Research Institute, International University of Japan.
    19. Kato, Ryuta Ray, 2022. "Population aging and labor mobility in Japan," Japan and the World Economy, Elsevier, vol. 62(C).
    20. Antonio Gómez Gómez-Plana & Pedro Pascual Arzoz, 2011. "Fraude fiscal e IVA en España: incidencia en un modelo de equilibrio general," Hacienda Pública Española / Review of Public Economics, IEF, vol. 199(4), pages 9-52, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:19:y:1994:i:2:p:211-226. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.