Arbeitspapier
Alternate solutions in mixing energy tax/subsidy and emission control policies
In this article, we look at the combination of several market-based climate and energy policies and compare them with first best solution, i.e., a perfectly designed emission tax or emission cap level. It is shown that in the case an emission control policy is imperfect designed or implemented, its performance can be improved by an energy (output) tax/subsidy scheme, where the subsidy is given only to renewable generators or for energy efficiency improvements. This combination can bring the production levels and energy price to the optimum level. The emission level is also decreased by this combination, but not to the optimum level. Thus it may be considered as a second-best policy set. However, other targets on renewables share or energy efficiency level are improved instead, although they are bounded by an optimum level. The policy combination needs to be applied globally to have its best effect and heterogeneous implementation (i.e. different levels of tax/subsidy for various regions) makes welfare loss, but still adding a global emission control policy to a set of existing different local output tax/subsidy policies may be beneficial.
- Sprache
-
Englisch
- Erschienen in
-
Series: IME Working Paper ; No. 119
Optimization Techniques; Programming Models; Dynamic Analysis
Welfare Economics: General
Taxation and Subsidies: Efficiency; Optimal Taxation
Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
Energy: Demand and Supply; Prices
Energy: Government Policy
environmental policy
instrument mixes
economic efficiency
environmental taxes and subsidies
Vestergaard, Niels
- Handle
- Letzte Aktualisierung
-
20.09.2024, 08:22 MESZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Heydari, Shahriar Shah
- Vestergaard, Niels
- University of Southern Denmark, Department of Environmental and Business Economics (IME)
Entstanden
- 2015