This study examines carbon taxation's impact on UK households' energy choices, focusing on socioeconomic factors and fuel substitution using household microdata in a Multinomial Logit (MNL) framework. Rural households, reliant on costly, carbon-intensive fuels like heating oil and LPG, are...

Against the backdrop of China's "dual-carbon" goals, the complex interplay between fiscal decentralization and green taxation presents significant challenges for climate governance. This study examines the impact of green taxation on carbon emissions within the context of fiscal...

Carbon emissions are of significant concern, as they pose a growing threat to the integrity of ecological systems. This paper investigates the effectiveness of consumption-based carbon emissions reduction programs. We use an innovative quantile panel regression methodology as well as a...

Objective: This study aims to investigate the long-run effects of fiscal policy instruments, including environmental taxes, environmental protection expenditures and renewable energy incentives on environmental pollution, measured as ecological footprint, in a sample of European Union countries...

This article compares the environmental and welfare effects of three policies in a polluting managerial duopoly with homogeneous goods: an emissions tax, an abatement subsidy and a policy mix of those two instruments.The article analyzes an emissions reduction policy selection in a managerial...

If economic activity is considered the primary driver of climate change through emissions of carbon dioxide, then supporting economic growth and fighting emissions would appear to be at odds. However, the process of economic development may itself foster complementarity between GDP growth and...

We study optimal redistribution and carbon taxation in a Mirrlees framework. Households differ in their carbon footprint due to both (i) the overall level of spending and (ii) the composition of spending. Introducing a cap on carbon emissions reduces the social value of output, which lowers the...

The Paris Agreement mandated high-greenhouse-emitting countries implement carbon pricing to accelerate emission reduction to cope with environmental challenges posed by climate change. We emphasized a research analysis of the reciprocal feedback mechanism between micro- and macro-economic...

We investigate how fuel taxation reduces climate and pollution externalities by evaluating the world’s largest environmental tax reform. Using spatially detailed emissions data from more than 1,000 European regions in a synthetic difference-in-differences framework, we evaluate the impact of...

Climate change and its two-way relation with economic activity is stochastic and so is therefore the optimal tax internalizing the climate externality. But with capital irreversibility a stochastic time path for carbon prices slows down the reallocation from brown to green sectors because...

Carbon taxes on household consumption can simultaneously increase public funding and promote greener consumption habits, an appealing combination for the just transition plans of the European Union (EU). However, concerns about equity and public support pose challenges. This paper assesses the...

This paper explores the distributive impact of a hypothetical carbon tax on households’ transport and energy consumption in Belgium. It focuses on the welfare effects across population groups and along the income distribution, as well as on the expected budgetary and environmental effects,...

This case study includes TSI projects in the areas of green budgeting and green taxation. It covers one multi-country project, comprised of 23 multi-country child projects (reforms) and two standalone projects (analysed separately). The supervision of these initiatives, focused on green public...

This paper explores the distributive impact of a hypothetical carbon tax on households' transport and energy consumption in Belgium. It focuses on the welfare effects across population groups and along the income distribution, as well as on the expected budgetary and environmental effects,...

Within a two-country model, this paper identifies a novel emission leakage channel that is caused by moral behavior of (atomistic) consumers. In a non-cooperative emission tax game between the countries, the leakage effect lowers the governments’ marginal benefit of emission taxation, so...

In this paper, we first test the validity of the Environmental Kuznets Curve (EKC) hypothesis, using a large sample of approximately 190 advanced and developing countries, over a period of 34 years (1989- 2022). We find that (CO2) emissions respond positively to increasing income per capita, up...

Electric vehicles (EVs) are central to global efforts to reduce transportation emissions, yet limited charging infrastructure remains a primary barrier to widespread adoption. Governments worldwide have implemented various subsidies for EV purchasers and manufacturers, alongside green tax...