Managing the distributional effects of energy taxes and subsidy removal in Latin America and the Caribbean

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216224%3A14230%2F18%3A00105390" target="_blank" >RIV/00216224:14230/18:00105390 - isvavai.cz</a>

Výsledek na webu

<a href="https://www.sciencedirect.com/science/article/pii/S0306261918306834#" target="_blank" >https://www.sciencedirect.com/science/article/pii/S0306261918306834#</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1016/j.apenergy.2018.04.116" target="_blank" >10.1016/j.apenergy.2018.04.116</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Managing the distributional effects of energy taxes and subsidy removal in Latin America and the Caribbean

Popis výsledku v původním jazyce

Energy subsidies have been criticized due to their economic inefficiency and promotion of wasteful usage of energy and associated carbon emissions. Conversely, environmental taxes are advocated as efficient policy instruments. But removing subsidies and taxing energy can be politically challenging because vulnerable households rely on low energy prices. This study analyzes the impact of energy price hikes on different income groups using an energy-extended input-output approach. Our results show that higher-income groups benefit more from low energy prices than low-income groups when tracing both direct and indirect (supply chain) effects of energy price variations. Energy subsidies are a very expensive option to transfer income to poor households. For example, in Latin America and the Caribbean, using energy subsidies would cost about $12 to transfer $1 of income to households in the poorest quintile. Recycling a small fraction of fiscal revenues from energy subsidy removal or energy taxation could be sufficient to compensate vulnerable households from the effects of price hikes. Cash transfers to poor households and targeted subsidies for public transportation or food are the most effective measures to compensate households for welfare loss.

Název v anglickém jazyce

Managing the distributional effects of energy taxes and subsidy removal in Latin America and the Caribbean

Popis výsledku anglicky

Energy subsidies have been criticized due to their economic inefficiency and promotion of wasteful usage of energy and associated carbon emissions. Conversely, environmental taxes are advocated as efficient policy instruments. But removing subsidies and taxing energy can be politically challenging because vulnerable households rely on low energy prices. This study analyzes the impact of energy price hikes on different income groups using an energy-extended input-output approach. Our results show that higher-income groups benefit more from low energy prices than low-income groups when tracing both direct and indirect (supply chain) effects of energy price variations. Energy subsidies are a very expensive option to transfer income to poor households. For example, in Latin America and the Caribbean, using energy subsidies would cost about $12 to transfer $1 of income to households in the poorest quintile. Recycling a small fraction of fiscal revenues from energy subsidy removal or energy taxation could be sufficient to compensate vulnerable households from the effects of price hikes. Cash transfers to poor households and targeted subsidies for public transportation or food are the most effective measures to compensate households for welfare loss.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

50704 - Environmental sciences (social aspects)

Projekt

—

Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2018

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Applied Energy

ISSN

0306-2619

e-ISSN

1872-9118

Svazek periodika

225

Číslo periodika v rámci svazku

September

Stát vydavatele periodika

GB - Spojené království Velké Británie a Severního Irska

Počet stran výsledku

13

Strana od-do

424-436

Kód UT WoS článku

000438181000031

EID výsledku v databázi Scopus

2-s2.0-85046855721