Journal article
General Equilibrium Incidence of Energy Taxation
Southern economic journal, Vol.51(4), pp.1018-1030
04/01/1985
DOI: 10.2307/1058374
Abstract
The pervasiveness of energy in the economy and the many ways in which energy taxation can distort resource allocations implies the necessity of a general equilibrium approach to the issue of energy tax incidence. A general equilibrium model is presented that accounts for domestic energy production and energy imports, direct energy consumption and use of energy as an intermediate good, and production of energy intensive and nonenergy intensive products. The incidence of 3 broadly based energy taxation policies is examined: 1. a tax on all energy consumption, 2. a subsidy to domestic energy production, and 3. a tariff on energy imports. The incidence of an energy consumption tax is found to depend on input substitution possibilities in the production of goods. A subsidy to domestic energy generation will be regressive.
Details
- Title: Subtitle
- General Equilibrium Incidence of Energy Taxation
- Creators
- John Solow
- Resource Type
- Journal article
- Publication Details
- Southern economic journal, Vol.51(4), pp.1018-1030
- DOI
- 10.2307/1058374
- ISSN
- 0038-4038
- eISSN
- 2325-8012
- Publisher
- Southern Economic Association
- Language
- English
- Date published
- 04/01/1985
- Academic Unit
- Economics
- Record Identifier
- 9984963524802771
Metrics
1 Record Views