The distributional implications of a carbon tax in Ireland

Tim Callan; Sean Lyons; Susan Scott; Richard S.J. Tol; Stefano Verde

doi:10.1016/j.enpol.2008.08.034

The distributional implications of a carbon tax in Ireland

Tim Callan, Sean Lyons, Susan Scott, Richard S.J. Tol^*, Stefano Verde

^*Corresponding author for this work

Research output: Contribution to Journal › Article › Academic › peer-review

Abstract

We study the effects of carbon tax and revenue recycling across the income distribution in the Republic of Ireland. In absolute terms, a carbon tax of €20/tCO₂ would cost the poorest households less than €3/week and the richest households more than €4/week. A carbon tax is regressive, therefore. However, if the tax revenue is used to increase social benefits and tax credits, households across the income distribution can be made better off without exhausting the total carbon tax revenue.

Original language	English
Pages (from-to)	407-412
Number of pages	6
Journal	Energy Policy
Volume	37
Issue number	2
DOIs	https://doi.org/10.1016/j.enpol.2008.08.034
Publication status	Published - 1 Feb 2009

Funding

We are grateful to an anonymous referee for constructive comments, and to the Environmental Protection Agency (Ireland) for the financial support.

Keywords

Carbon tax
Income distribution
Ireland

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1016/j.enpol.2008.08.034

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AB - We study the effects of carbon tax and revenue recycling across the income distribution in the Republic of Ireland. In absolute terms, a carbon tax of €20/tCO2 would cost the poorest households less than €3/week and the richest households more than €4/week. A carbon tax is regressive, therefore. However, if the tax revenue is used to increase social benefits and tax credits, households across the income distribution can be made better off without exhausting the total carbon tax revenue.

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The distributional implications of a carbon tax in Ireland

Abstract

Funding

Keywords

UN SDGs

Access to Document

Persistent URL (handle)

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Cite this