umu.sePublications
Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Income, Energy Taxation, and the Environment: An Econometric analysis
Umeå University, Faculty of Social Sciences, Department of Economics.
2006 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

This thesis consists of four papers: two of them deal with the relationship between consumption, energy taxation, and emissions on macro level, and two of them focuses on the effects of changes in consumption and income on the environmental quality on a micro level.

The main objective of paper [I] is to examine how exogenous technological progress, in terms of an increase in energy efficiency, affects consumption choice by Swedish households and thereby emissions of carbon dioxide (CO2), sulphur dioxide (SO2) and nitrogen oxide (NOx). The aim of the paper is closely related to the discussion of what is known as the “rebound effect”. To neutralise the rebound effect, we estimate the necessary change in CO2 tax, i.e. the CO2 tax that keeps CO2 emissions at their initial level. In addition, we estimate how this will affect emissions of sulphur dioxide and nitrogen oxides. The results indicate that an increase in energy efficiency of 20 percent will increase emissions of CO2 by approximately 5 percent. To reduce the CO2 emissions to their initial level, CO2 tax must be raised by 130 percent. This tax increase will reduce the emissions of sulphur dioxide to below their initial level, but will leave the emissions of nitrogen oxides at a higher level than initially.

One of the premises implied in paper [II] is that the changes in consumer prices, as a result of changes in environmental taxes, may send a different signal to the consumer compared with other changes in consumer prices, such as changes in producer price. In addition, this assumed difference in the signaling effect of the changes in environmental taxes, compared to changes in the producer price, may also differ between different commodities. To achieve the objectives a system of demand functions for Swedish households is estimated. To test for the signalling effect of environmental taxes the consumer price for energy goods is partitioned into a producer price part and a tax part.

In Paper [III], we estimate the income elasticity of demand for recreational services and other traditional groups of goods in Sweden and we test for potential changes in such estimates over the twentieth century. The paper uses Swedish household surveys for the years 1913, 1984, 1988, and 1996. Because of the difficulty of directly observing the demand for recreational services, we employ an indirect methodology by using the demand for some outdoor goods as proxies for the recreational services demand.

In paper [IV], we investigate the relationship between pollution and income at the household level. Here we want to investigate, and hence contribute to the existing literature, under what conditions concerning individual preferences and the link between consumption and pollution a linear relationship are to be expected, but also to empirically assess the relationship. To achieve our objective we formulate a model determining different type of households’ choice of consumption for goods. Furthermore we link the demand model to emission functions for the various goods. The results from the empirical analysis show that, at least in a close neighbourhood of observed income/pollution, we can reject linearity for all three types of pollutions, CO2, SO2, and NOx. According to our results the pollution/income relationships are all strictly concave. Thus the implication is that the income distribution seems to matter in the sense that equalization of income will lead to higher emissions. Furthermore it is shown that the slope as well as the curvature differs between different types of households, which means that preferences differ across households.

Place, publisher, year, edition, pages
Umeå: Institutionen för nationalekonomi, Umeå universitet , 2006. , 115 p.
Series
Umeå economic studies, ISSN 0348-1018 ; 678
Keyword [en]
Household consumption, energy demand, emissions, rebound effect, energy taxation, tax elasticities Environmental services, income elasticities, Engel Curves, income distribution.
National Category
Economics
Identifiers
URN: urn:nbn:se:umu:diva-749ISBN: 91-7264-079-0 (print)OAI: oai:DiVA.org:umu-749DiVA: diva2:144418
Public defence
2006-05-05, Sal s205h, Samhällsvetarhuset, Umea University, 13:15
Opponent
Supervisors
Available from: 2006-04-10 Created: 2006-04-10 Last updated: 2012-06-04Bibliographically approved
List of papers
1. Increased energy efficiency and the rebound effect: Effects on consumption and emissions
Open this publication in new window or tab >>Increased energy efficiency and the rebound effect: Effects on consumption and emissions
2007 (English)In: Energy Economics, ISSN 0140-9883, E-ISSN 1873-6181, Vol. 29, no 1, 1-17 p.Article in journal (Refereed) Published
Abstract [en]

The main objective of this paper is to examine how exogenous technological progress, in terms of an increase in energy efficiency, affects consumption choice by Swedish households and thereby emissions of carbon dioxide (CO2), sulphur dioxide (SO2) and nitrogen oxide (NOx). The aim of the paper is closely related to the discussion of what is termed the “rebound effect”. To neutralise the rebound effect, we estimate the necessary change in CO2 tax, i.e. the CO2 tax that keeps CO2emissions at their initial level. In addition, we estimate how this will affect emissions of sulphur dioxide and nitrogen oxides. The results indicate that an increase in energy efficiency of 20% will increase emissions of CO2 by approximately 5%. To reduce the CO2 emissions to their initial level, the CO2 tax must be raised by 130%. This tax increase will reduce the emissions of sulphur dioxide to below their initial level, but will leave the emissions of nitrogen oxides at a higher level than initially. Thus, if marginal damages from sulphur dioxide and nitrogen dioxide are non-constant, additional policy instruments are needed.

Place, publisher, year, edition, pages
London: IPC science and technology P., 2007
Keyword
household consumption, energy demand, emissions, rebound effect, taxation
National Category
Economics
Research subject
Economics
Identifiers
urn:nbn:se:umu:diva-5057 (URN)10.1016/j.eneco.2005.09.003 (DOI)
Available from: 2006-04-10 Created: 2006-04-10 Last updated: 2011-04-01Bibliographically approved
2. Energy taxes as a signaling device: An empirical analysis of consumer preferences
Open this publication in new window or tab >>Energy taxes as a signaling device: An empirical analysis of consumer preferences
2007 (English)In: Energy Policy, ISSN 0301-4215, Vol. 35, no 1, 29-38 p.Article in journal (Refereed) Published
Abstract [en]

This paper presents an econometric study dealing with household demand in Sweden. The main objective is to empirically examine the differences in consumer reaction to the introduction of, or the change, in environmental taxes. Main focus is on environmental taxes as asignalingdevice. The hypothesis is that the introduction of an environmental tax provides new information about the properties of the directly taxed goods. This in turn may affect consumer preferences for these goods, hence altering the consumption choice. The result from the econometric analysis shows that all goods have negative own-price elasticities, and positive income elasticities. Concerning the signalling effect of environmental taxes the results are somewhat ambiguous. The tax elasticity for energy goods used for heating seems to be significantly higher than the traditional price elasticity, whereas the opposite seems to be the case for energy goods used for transportation.

Place, publisher, year, edition, pages
Elsevier, 2007
Keyword
Household demand, Energytax, Tax elasticities
National Category
Economics and Business
Identifiers
urn:nbn:se:umu:diva-5058 (URN)10.1016/j.enpol.2005.09.011 (DOI)
Available from: 2006-04-10 Created: 2006-04-10 Last updated: 2012-06-14Bibliographically approved
3. Demand for environmental quality: an empirical analysis of consumer behavior in Sweden
Open this publication in new window or tab >>Demand for environmental quality: an empirical analysis of consumer behavior in Sweden
2006 (English)In: Umeå economic studies, no 676Article in journal (Refereed) Published
National Category
Economics
Research subject
Economics
Identifiers
urn:nbn:se:umu:diva-5059 (URN)
Available from: 2006-04-10 Created: 2006-04-10 Last updated: 2012-06-01Bibliographically approved
4. The income-pollution relationship and the role of income distribution: evidence from Swedish household data
Open this publication in new window or tab >>The income-pollution relationship and the role of income distribution: evidence from Swedish household data
2006 (English)In: Umeå economic studies, no 677Article in journal (Refereed) Published
National Category
Economics
Research subject
Economics
Identifiers
urn:nbn:se:umu:diva-5060 (URN)
Available from: 2006-04-10 Created: 2006-04-10 Last updated: 2012-06-01Bibliographically approved

Open Access in DiVA

fulltext(2104 kB)1284 downloads
File information
File name FULLTEXT01.pdfFile size 2104 kBChecksum SHA-1
c72e45bbdf5a2c0614c4aaf5930cc730b21944e665fdfcb874de290c762b5ccff6b3db52
Type fulltextMimetype application/pdf

By organisation
Department of Economics
Economics

Search outside of DiVA

GoogleGoogle Scholar
Total: 1284 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

isbn
urn-nbn

Altmetric score

isbn
urn-nbn
Total: 1914 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf