Greenhouse gas abatement through fiscal policy

Completed

Energy Efficiency(Residential and commercial)
Energy Efficiency(Transport)
Not Energy Related
Other Cross-Cutting Technologies or Research(Environmental, social and economic impacts)

Basic and strategic applied research

SOCIAL SCIENCES (Economics and Econometrics)

Sociological economical and environmental impact of energy (Policy and regulation)

Dr TS Barker
Land Economy
University of Cambridge

Standard

ESRC

01 January 1994

31 December 1995

24 months

£141,400

No relevance to Underpinning Sectors

East of England

ESRC Energy

Dr TS Barker, Land Economy, University of Cambridge

Objectives not supplied

Application abstract: The IPCC Report estimates that a 60% cut in greenhouse gas (GG) emissions below 1988 levels is requires in order to stabilise GG concentrations. Given existing emission levels in the United Kingdom this represents a formidable challenge, requiring a radical transformation of the economy. As such, the project is concerned with the estimation and evaluation of a fundamental reform of fiscal policy such that the burden of taxation if shifted away from employment and investment and toward polluting activities, including GG emissions. The reform is to be studies over a 20-25 year period using an energy- environment-economy model of the UK, developed under Phase 1 of the GEC Programme. The model contains a detailed treatment of the public sector, which will allow fortheevaluation of the benefits of reducing other taxes (VAT, income tax, corporation tax) in light of the imposition of pollution taxes. The model incorporates seven air emissions including CO2, sothat some of the secondary benefits of reduced greenhouse gas emissions (e.g. reduced urban ozone and SO2 emissions) can be offset against the costs of abatement. Other non- pollutant secondary benefitsofabatements (e.g. reduced traffic congestion) will also be taken into account. Detailed sectoral analyses will assess the relative merits of more specific forms of state intervention.

24/11/09