IDEAS home Printed from https://ideas.repec.org/a/sae/enejou/v41y2020i3p231-254.html
   My bibliography  Save this article

The Vertical and Horizontal Distributive Effects of Energy Taxes: A Case Study of a French Policy

Author

Listed:
  • Thomas Douenne

Abstract

This paper proposes a micro-simulation assessment of the distributional impacts of the French carbon tax. It shows that the policy is regressive, but could be made progressive by redistributing the revenue through flat-recycling. However, it would still generate large horizontal distributive effects and harm a significant share of low-income households. The determinants of the tax incidence are characterized precisely, and alternative targeted transfers are simulated on this basis. The paper shows that given the importance of unobserved heterogeneity in the determinants of energy consumption, horizontal distributive effects are much more difficult to tackle than vertical ones.

Suggested Citation

  • Thomas Douenne, 2020. "The Vertical and Horizontal Distributive Effects of Energy Taxes: A Case Study of a French Policy," The Energy Journal, , vol. 41(3), pages 231-254, May.
    • Handle: RePEc:sae:enejou:v:41:y:2020:i:3:p:231-254
    DOI: 10.5547/01956574.41.3.tdou
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.5547/01956574.41.3.tdou
    Download Restriction: no
    File URL: https://libkey.io/10.5547/01956574.41.3.tdou?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
    ---><---

    References listed on IDEAS

    as
    1. Molly Espey, 1996. "Explaining the Variation in Elasticity Estimates of Gasoline Demand in the United States: A Meta-Analysis," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 49-60.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:hal:journl:hal-04799412 is not listed on IDEAS
    2. Lennard Schlattmann, 2024. "Spatial Redistribution of Carbon Taxes," ECONtribute Discussion Papers Series 345, University of Bonn and University of Cologne, Germany.
    3. repec:hal:ipppap:hal-04799412 is not listed 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. Rodrigo M. S. Moita & Claudio Paiva, 2013. "Political Price Cycles in Regulated Industries: Theory and Evidence," American Economic Journal: Economic Policy, American Economic Association, vol. 5(1), pages 94-121, February.
    2. Labandeira, Xavier & Labeaga, José M. & López-Otero, Xiral, 2017. "A meta-analysis on the price elasticity of energy demand," Energy Policy, Elsevier, vol. 102(C), pages 549-568.
    3. Scheitrum, Daniel, 2017. "Renewable Natural Gas as a Solution to Climate Goals: Response to California's Low Carbon Fuel Standard," MPRA Paper 77193, University Library of Munich, Germany.
    4. West, Sarah E., 2004. "Distributional effects of alternative vehicle pollution control policies," Journal of Public Economics, Elsevier, vol. 88(3-4), pages 735-757, March.
    5. Roeder, Kerstin & Habla, Wolfgang, 2012. "The Political Sustainability of Germany's Environmental Tax Rate," VfS Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62060, Verein für Socialpolitik / German Economic Association.
    6. Clements, Kenneth W., 2008. "Price elasticities of demand are minus one-half," Economics Letters, Elsevier, vol. 99(3), pages 490-493, June.
    7. Rosenberger, Randall S. & Loomis, John B. & Shrestha, Ram K., 1999. "Panel Stratification In Meta-Analysis Of Environmental And Natural Resource Economic Studies," 1999 Annual Meeting, July 11-14, 1999, Fargo, ND 35705, Western Agricultural Economics Association.
    8. Dumortier, Jerome & Zhang, Fengxiu & Marron, John, 2017. "State and federal fuel taxes: The road ahead for U.S. infrastructure funding," Transport Policy, Elsevier, vol. 53(C), pages 39-49.
    9. Glomm, Gerhard & Kawaguchi, Daiji & Sepulveda, Facundo, 2008. "Green taxes and double dividends in a dynamic economy," Journal of Policy Modeling, Elsevier, vol. 30(1), pages 19-32.
    10. Choi, Jun-Ki & Bakshi, Bhavik R. & Haab, Timothy, 2010. "Effects of a carbon price in the U.S. on economic sectors, resource use, and emissions: An input-output approach," Energy Policy, Elsevier, vol. 38(7), pages 3527-3536, July.
    11. Damien Dussaux, 2020. "The joint effects of energy prices and carbon taxes on environmental and economic performance: Evidence from the French manufacturing sector," OECD Environment Working Papers 154, OECD Publishing.
    12. Habla, Wolfgang & Roeder, Kerstin, 2013. "Intergenerational aspects of ecotax reforms – An application to Germany," Journal of Environmental Economics and Management, Elsevier, vol. 66(2), pages 301-318.
    13. Lehner, Stephan & Peer, Stefanie, 2019. "The price elasticity of parking: A meta-analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 121(C), pages 177-191.
    14. Ian W. H. Parry & Margaret Walls & Winston Harrington, 2007. "Automobile Externalities and Policies," Journal of Economic Literature, American Economic Association, vol. 45(2), pages 373-399, June.
    15. Simona Bigerna & Carlo Andrea Bollino & Paolo Polinori, 2014. "The Question of Sustainability of Green Electricity Policy Intervention," Sustainability, MDPI, vol. 6(8), pages 1-23, August.
    16. Ian W. H. Parry & Kenneth A. Small, 2005. "Does Britain or the United States Have the Right Gasoline Tax?," American Economic Review, American Economic Association, vol. 95(4), pages 1276-1289, September.
    17. Berck, Peter & Braennlund, Runar, 2010. "Green regulations in Califorina and Sweden," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt78x4r0z6, Department of Agricultural & Resource Economics, UC Berkeley.
    18. Santos, Gervásio F., 2013. "Fuel demand in Brazil in a dynamic panel data approach," Energy Economics, Elsevier, vol. 36(C), pages 229-240.
    19. Khachatryan, Hayk & Jessup, Eric & Casavant, Kenneth, 2010. "Spatial Patterns in Household Demand for Ethanol," 51st Annual Transportation Research Forum, Arlington, Virginia, March 11-13, 2010 207248, Transportation Research Forum.
    20. Bal, Frans & Nijkamp, Peter, 2001. "In search of valid results in a complex economic environment: The potential of meta-analysis and value transfer," European Journal of Operational Research, Elsevier, vol. 128(2), pages 364-384, January.

    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:sae:enejou:v:41:y:2020:i:3:p:231-254. 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: SAGE Publications (email available below). General contact details of provider: .

    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.