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Environmentally Responsible Energy Pricing

Author

Listed:
  • W. Kip Viscusi
  • Wesley A. Magat
  • Alan Carlin
  • Mark K. Dreyfus

Abstract

This paper assesses the value of the non-global warming externalities associated with energy use. The estimates of the full social cost energy prices based on this “no regrets†approach imply environmental costs that often greatly exceed current tax amounts. The midpoint estimates suggest that the price of coal is most out of line with its efficient level. Natural gas is currently overtaxed, and gasoline is appropriately taxed. There is also a substantial range of uncertainty embodied in the no regrets estimates.

Suggested Citation

  • W. Kip Viscusi & Wesley A. Magat & Alan Carlin & Mark K. Dreyfus, 1994. "Environmentally Responsible Energy Pricing," The Energy Journal, , vol. 15(2), pages 23-42, April.
    • Handle: RePEc:sae:enejou:v:15:y:1994:i:2:p:23-42
    DOI: 10.5547/ISSN0195-6574-EJ-Vol15-No2-2
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    References listed on IDEAS

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    1. James M. Poterba, 1991. "Tax Policy to Combat Global Warming: On Designing a Carbon Tax," NBER Working Papers 3649, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Eskeland, Gunnar S. & Harrison, Ann E., 2003. "Moving to greener pastures? Multinationals and the pollution haven hypothesis," Journal of Development Economics, Elsevier, vol. 70(1), pages 1-23, February.
    2. Jaramillo, Paulina & Muller, Nicholas Z., 2016. "Air pollution emissions and damages from energy production in the U.S.: 2002–2011," Energy Policy, Elsevier, vol. 90(C), pages 202-211.
    3. Clarke, Rosemary & Edwards, T Huw, 1998. "Deregulation of the Japanese oil products market," Energy Policy, Elsevier, vol. 26(2), pages 129-141, February.
    4. Krupnick, Alan J. & Burtraw, Dallas, 1996. "The social costs of electricity: Do the numbers add up?," Resource and Energy Economics, Elsevier, vol. 18(4), pages 423-466, December.
    5. Subhes C. Bhattacharyya, 1997. "Energy taxation and the environment: a developing country perspective," Natural Resources Forum, Blackwell Publishing, vol. 21(4), pages 273-280, November.
    6. Eskeland, Gunnar S. & Feyzioglu, Tarhan N., 1997. "Is demand for polluting goods manageable? An econometric study of car ownership and use in Mexico," Journal of Development Economics, Elsevier, vol. 53(2), pages 423-445, August.
    7. Khademvatani, Asgar & Gordon, Daniel V., 2013. "A marginal measure of energy efficiency: The shadow value," Energy Economics, Elsevier, vol. 38(C), pages 153-159.
    8. Burtraw, Dallas & Krupnick, Alan & Palmer, Karen & Paul, Anthony & Toman, Michael & Bloyd, Cary, 2003. "Ancillary benefits of reduced air pollution in the US from moderate greenhouse gas mitigation policies in the electricity sector," Journal of Environmental Economics and Management, Elsevier, vol. 45(3), pages 650-673, May.
    9. Eskeland, Gunnar*Chingying Kong, 1998. "Protecting the environment and the poor - a public goods framework applied to Indonesia," Policy Research Working Paper Series 1961, The World Bank.
    10. Duane Chapman & Jon D. Erickson, 1995. "Residential Rural Solar Electricity In Developing Countries," Contemporary Economic Policy, Western Economic Association International, vol. 13(2), pages 98-108, April.
    11. Burtraw, Dallas & Krupnick, Alan J. & Palmer, Karen L. & Paul, Anthony & Toman, Michael & Bloyd, Cary, 2001. "Ancillary Benefits of Reduced Air Pollution in the United States from Moderate Greenhouse Gas Mitigation Policies in the Electricity Sector," Discussion Papers 10664, Resources for the Future.
    12. Aurélien Baillon & Laure Cabantous & Peter Wakker, 2012. "Aggregating imprecise or conflicting beliefs: An experimental investigation using modern ambiguity theories," Journal of Risk and Uncertainty, Springer, vol. 44(2), pages 115-147, April.
    13. Philip B. Thompson, 2002. "Consumer Theory, Home Production, And Energy Efficiency," Contemporary Economic Policy, Western Economic Association International, vol. 20(1), pages 50-59, January.
    14. Burtraw, Dallas & Toman, Michael, 1997. "The Benefits of Reduced Air Pollutants in the U.S. from Greenhouse Gas Mitigation Policies," RFF Working Paper Series dp-98-01-rev, Resources for the Future.
    15. Herman Vollebergh, 2004. "Lessons from the Polder: Is Dutch CO2-Taxation Optimal?," Working Papers 2004.6, Fondazione Eni Enrico Mattei.

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    More about this item

    Keywords

    Environmental protection; Energy pricing; Taxes; Climate change; Externalities;
    All these keywords.

    JEL classification:

    • F0 - International Economics - - General

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