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Title: Income distribution impacts of climate change mitigation policy in the Susquehanna River Basin Economy

Abstract

We examine the cost-side income distribution impacts of a carbon tax in the Susquehanna River Basin (SRB) Region of the United States utilizing a computable general equilibrium model. We find the aggregate impacts of a $25/ton carbon tax on the SRB economy are likely to be negative but modest-an approximately one-third of 1% reduction in Gross Regional Product (GRP) in the short-run and double that amount in the long-run. However, unlike many previous studies, we find that the carbon tax is mildly progressive as measured by income bracket changes, per capita equivalent variation, and Gini coefficient changes based on expenditure patterns. The dominant factors affecting the distributional impacts are the pattern of output, income and consumption impacts that affect lower income groups relatively less than higher income ones, an increase in transfer payments favoring lower income groups, and decreased corporate profits absorbed primarily by higher income groups.

Authors:
 [1]
  1. ORNL
Publication Date:
Research Org.:
Oak Ridge National Lab. (ORNL), Oak Ridge, TN (United States)
Sponsoring Org.:
Work for Others (WFO)
OSTI Identifier:
958765
DOE Contract Number:
DE-AC05-00OR22725
Resource Type:
Journal Article
Resource Relation:
Journal Name: Energy Economics; Journal Volume: 29; Journal Issue: 3
Country of Publication:
United States
Language:
English

Citation Formats

Oladosu, Gbadebo A. Income distribution impacts of climate change mitigation policy in the Susquehanna River Basin Economy. United States: N. p., 2007. Web. doi:10.1016/j.eneco.2005.09.012.
Oladosu, Gbadebo A. Income distribution impacts of climate change mitigation policy in the Susquehanna River Basin Economy. United States. doi:10.1016/j.eneco.2005.09.012.
Oladosu, Gbadebo A. Mon . "Income distribution impacts of climate change mitigation policy in the Susquehanna River Basin Economy". United States. doi:10.1016/j.eneco.2005.09.012.
@article{osti_958765,
title = {Income distribution impacts of climate change mitigation policy in the Susquehanna River Basin Economy},
author = {Oladosu, Gbadebo A},
abstractNote = {We examine the cost-side income distribution impacts of a carbon tax in the Susquehanna River Basin (SRB) Region of the United States utilizing a computable general equilibrium model. We find the aggregate impacts of a $25/ton carbon tax on the SRB economy are likely to be negative but modest-an approximately one-third of 1% reduction in Gross Regional Product (GRP) in the short-run and double that amount in the long-run. However, unlike many previous studies, we find that the carbon tax is mildly progressive as measured by income bracket changes, per capita equivalent variation, and Gini coefficient changes based on expenditure patterns. The dominant factors affecting the distributional impacts are the pattern of output, income and consumption impacts that affect lower income groups relatively less than higher income ones, an increase in transfer payments favoring lower income groups, and decreased corporate profits absorbed primarily by higher income groups.},
doi = {10.1016/j.eneco.2005.09.012},
journal = {Energy Economics},
number = 3,
volume = 29,
place = {United States},
year = {Mon Jan 01 00:00:00 EST 2007},
month = {Mon Jan 01 00:00:00 EST 2007}
}