Energy taxation as a policy instrument to reduce CO{sub 2} emissions: A net benefit analysis

Journal Article · Sat Jul 01 00:00:00 EDT 1995 · Journal of Environmental Economics and Management

DOI:https://doi.org/10.1006/jeem.1995.1028· OSTI ID:90906

Boyd, R ^[1]; Krutilla, K ^[2]; Viscusi, W K ^[3]

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1. Ohio Univ., Athens, OH (United States)
2. Indiana Univ., Bloomington, IN (United States)
3. Duke Univ., Durham, NC (United States)

This study evaluates the costs and benefits of energy taxation as a policy instrument to conserve energy and reduce CO{sub 2} emissions. The study combines economic cost estimates generated with a CGE model and monetary estimates of environmental damages in a comprehensive cost/benefit framework. We find that optimal CO{sub 2} emissions reductions range from 5 to 38%, depending on different assumptions about energy substitution elasticities and environmental damages. CO{sub 2} emissions reductions of between 8 and 64% can be attained at no additional welfare cost relative to a policy of not undertaking any action to control CO{sub 2} emissions. 33 refs., 7 figs., 8 tabs.

• OSTI ID: 90906
• Journal Information: Journal of Environmental Economics and Management, Vol. 29, Issue 1; Other Information: PBD: Jul 1995
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING AND POLICY
CARBON DIOXIDE
POLLUTION ABATEMENT
FINANCIAL INCENTIVES
ECONOMIC ANALYSIS
ENERGY CONSERVATION
GREENHOUSE GASES