Environmental Valuation & Cost-Benefit News
The Costs of Kyoto Adjustments for Spanish Households
02/28/08
02:15:00 pm, by damageva 
, 235 words, 226 views 
Categories: Energy, Climate Change GHG Carbon CO2, Europe, Academic Study/Journal Article, Regulatory Analysis, Computer Software/Database, Costs and Benefits
The Costs of Kyoto Adjustments for Spanish Households
Abstract: In this paper we present a microsimulation model to calculate the effects of a tax levied on Spanish energy-related CO2 (carbon dioxide) emissions in order to comply with EU (Kyoto-mandated) targets. The model uses the results of our prior estimation of a demand system with Spanish household data from 1973 to 1995, which is especially designed for simultaneous analysis of different energy goods. Our objective is to obtain in-depth information on the behavioural responses by different types of households, which will allow us to determine the welfare effects of tax-induced price changes, their distribution across society and the environmental consequences within the residential sector. The results show a significant response by households, sizeable emission reductions, important tax revenues, moderate welfare changes and distributional effects. The simulated policy can therefore be considered a feasible option for tackling some of the current and severe inefficiencies in Spanish energy and environmental domains.
Keywords: Energy demand, carbon tax, distribution, Spain
by Xavier Labandeira 1, José M. Labeaga 2 and Miguel Rodríguez 1
1. FEDEA and rede, Universidade de Vigo. Xavier Labandeira, FEDEA, Jorge Juan 46,
28001 Madrid (Spain), Telephone: +34914350401, email: xlabandeira@fedea.es; url:
http://webs.uvigo.es/xavier.
2. FEDEA and Department of Economic Analysis II, UNED.
Fundacion de Estudios de Economia Aplicada www.fedea.es
Documento de Trabajo 2008-02; January, 2008
Serie Energía y Cambio Climático
FEDEA – DT 2008-02 by Xavier Labandeira et al. 1
http://www.fedea.es/pub/Papers/2008/dt2008-02.pdf
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