How to make a carbon tax reform progressive: The role of subsistence consumption

Klenert, David and Mattauch, Linus (2015): How to make a carbon tax reform progressive: The role of subsistence consumption.

Abstract

This letter analyzes the distributional effects of a carbon tax reform when households must consume carbon-intensive goods above a subsistence level. The reform is progressive if revenues are recycled as uniform lump-sum transfers, in other cases it is regressive.

• Item Type: MPRA Paper
• Language: English
• Keywords: carbon tax reform, distribution, revenue recycling, inequality, non-homothetic preferences
• Subjects: D - Microeconomics > D3 - Distribution; D - Microeconomics > D6 - Welfare Economics > D60 - General; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E62 - Fiscal Policy; H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H22 - Incidence; H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H23 - Externalities ; Redistributive Effects ; Environmental Taxes and Subsidies

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