Greener and Fairer: A Progressive Environmental Tax Reform for Spain

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Böhringer, C., X. Garcia-Muros and M. González-Eguino. 2019. Greener and Fairer: A Progressive Environmental Tax Reform for Spain. Economics of Energy & Environmental Policy. Vol 8. Num. 2 DOI (10.5547/2160-5890.8.2.cboh)
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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.

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Zure e-posta helbidea ez da argitaratuko. Beharrezko eremuak * markatuta daude

María de Maeztu Excellence Unit 2023-2027 Ref. CEX2021-001201-M, funded by MCIN/AEI /10.13039/501100011033

©2008 BC3 Basque Centre for Climate Change.