May 3, 2017
Published by BC3Research Iñaki Arto Ignacio Cazcarro Xaquín García at May 3, 2017
New BC3 Journal Article published: "Böhringer C., Garcia-Muros X., Cazcarro I., Arto I. 2017. The efficiency cost of protective measures in climate policy. Energy Policy. 104. 446-454"
September 18, 2019
Published by BC3Research Xaquín García Mikel González-Eguino at September 18, 2019
Environmental externalities call for the use of environmental taxes to get prices right and thereby reduce environmental pressures. To date, however, the Spanish government makes only limited use of environmental taxes. One major reason for the policy reluctance are concerns on the regressive impacts of environmental taxes. We argue that policy can hedge against these concerns by means of revenue recycling. More specifically, we assess the impacts of a green tax reform where additional revenues are redistributed lump-sum to Spanish households on an equal-per-capita basis. Based on quantitative evidence from coupled microsimulation and computable equilibrium analyses we find that such a green tax reform leads to a substantial reduction in harmful emissions while having a progressive impact.