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Behavioural responses to energy-related taxes: a survey

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  • A. Ferrer-i-Carbonell, A.C. Muskens, M.J. van Leeuwen

Abstract

This article examines behavioural responses to changes in energy prices by surveying the magnitude of energy price elasticities. Price elasticity estimates can be used to understand behavioural responses to changes in prices due to environmental taxes. A theoretical framework is presented followed by an overview of the range of price elasticity estimates for energy found in the literature. The empirical estimates are classified on the basis of a selection of characteristics. It is argued that presenting a range of price elasticities provides more information than a unique estimate. The findings suggest that environmental taxes can create a significant reduction in energy use.

Suggested Citation

  • A. Ferrer-i-Carbonell, A.C. Muskens, M.J. van Leeuwen, 2002. "Behavioural responses to energy-related taxes: a survey," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 18(2/3/4), pages 202-217.
    • Handle: RePEc:ids:ijgeni:v:18:y:2002:i:2/3/4:p:202-217
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    Citations

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    Cited by:

    1. Krauss, Alexander, 2016. "How natural gas tariff increases can influence poverty: Results, measurement constraints and bias," Energy Economics, Elsevier, vol. 60(C), pages 244-254.
    2. Aleksandra Matuszewska-Janica & Dorota Żebrowska-Suchodolska & Agnieszka Mazur-Dudzińska, 2021. "The Situation of Households on the Energy Market in the European Union: Consumption, Prices, and Renewable Energy," Energies, MDPI, vol. 14(19), pages 1-21, October.
    3. van den Bergh, Jeroen C.J.M., 2008. "Environmental regulation of households: An empirical review of economic and psychological factors," Ecological Economics, Elsevier, vol. 66(4), pages 559-574, July.
    4. Berkhout, Peter H. G. & Ferrer-i-Carbonell, Ada & Muskens, Jos C., 2004. "The ex post impact of an energy tax on household energy demand," Energy Economics, Elsevier, vol. 26(3), pages 297-317, May.

    More about this item

    Keywords

    energy; price elasticity; JEL classification system H3; Q41; Q48; taxes.;
    All these keywords.

    JEL classification:

    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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