Welfare analysis of energy taxes typically shows that systems with uniform rates perform better than differentiated systems. However, most western countries include some exemptions for their energy-intensive export industry, and hence, avoid this potential welfare gain. Böhringer and Rutherford...

Welfare analyses of energy taxes typically show that systems with uniform rates perform better than differentiated systems, especially if revenue increases can be recycled via cuts in more distortionary taxes. However, in the practical policy debates, the scope for efficiency gains is traded...