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Can a CO 2 Tax Be Socially Just? Analysis of the Social Distribution Effects of the German CO 2 Taxation

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  • Maike Venjakob

    (Energy Policy Research Unit, Wuppertal Institute for Climate, Environment and Energy, 42103 Wuppertal, Germany)

  • Oliver Wagner

    (Energy Policy Research Unit, Wuppertal Institute for Climate, Environment and Energy, 42103 Wuppertal, Germany)

  • Birte Schnurr

    (Energy Policy Research Unit, Wuppertal Institute for Climate, Environment and Energy, 42103 Wuppertal, Germany)

Abstract

Rising energy costs have led to increased discussion about the social impact of the energy transition in Germany in recent years. In 2021, a gradually increasing CO 2 tax was introduced. This paper analyzes the question of whether a CO 2 tax can be socially just. Using data analysis and desk research, correlations between income and energy consumption in Germany are shown. In a short analysis, it is investigated which additional burdens different types of private households have to expect in the coming years due to the introduction of CO 2 pricing on energy. In particular, the introduction of a per capita flat rate fed by CO 2 tax revenues could be a suitable way to reduce the burden on low-income households.

Suggested Citation

  • Maike Venjakob & Oliver Wagner & Birte Schnurr, 2023. "Can a CO 2 Tax Be Socially Just? Analysis of the Social Distribution Effects of the German CO 2 Taxation," Energies, MDPI, vol. 16(17), pages 1-14, August.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:17:p:6232-:d:1226711
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    References listed on IDEAS

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    1. Wagner, Oliver & Wiegand, Julia, 2018. "Prepayment metering: Household experiences in Germany," Renewable and Sustainable Energy Reviews, Elsevier, vol. 98(C), pages 407-414.
    2. Jun U. Shepard & Bas J. van Ruijven & Behnam Zakeri, 2022. "Impacts of Trade Friction and Climate Policy on Global Energy Trade Network," Energies, MDPI, vol. 15(17), pages 1-21, August.
    3. Patrick Criqui & Mark Jaccard & Thomas Sterner, 2019. "Carbon Taxation: A Tale of Three Countries," Sustainability, MDPI, vol. 11(22), pages 1-21, November.
    4. Seils, Eric & Baumann, Helge, 2022. "Der untere Entgeltbereich," WSI Policy Briefs 65, The Institute of Economic and Social Research (WSI), Hans Böckler Foundation.
    5. Johannes Thema & Florin Vondung, 2020. "Expenditure-Based Indicators of Energy Poverty—An Analysis of Income and Expenditure Elasticities," Energies, MDPI, vol. 14(1), pages 1-18, December.
    6. Julius J. Andersson, 2019. "Carbon Taxes and CO2 Emissions: Sweden as a Case Study," American Economic Journal: Economic Policy, American Economic Association, vol. 11(4), pages 1-30, November.
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