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The Vertical and Horizontal Distributive Effects of Energy Taxes

A Case Study of a French Policy

Bibliographic Data

ID19036703
AuthorsThomas Douenne (Paris School of Economics, Université Paris 1 Panthéon-Sorbonne. Send correspondence to Paris School of Economics, 48 boulevard Jourdan, 75014, Paris.., corresponding author)
Year2019
Volume41
Issue3
Pages231-254
Publication date2019-12-10
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueThe Energy Journal (JOURNAL)
Journal identifiersISSN: 0195-6574 • E-ISSN: 1944-9089
PublisherSAGE Publishing (PUBLISHER • US)
DOI10.5547/01956574.41.3.tdou
OpenAlexW2996829622
LanguageEN
Citations received41
References cited29

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

Carbon tax · Distributive property · Economics · Geography · Greenhouse gas · Harm · Horizontal and vertical · Public economics · Revenue · Tax revenue · Climate Change Policy and Economics · Energy, Environment, and Transportation Policies · Fiscal Policy and Economic Growth

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Unique citing works41
Citations per year5,86
Citation span2019 - 2026 (8)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 37

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