Designing an environmental tax on carbon emissions to meet EU targets : a proposal for the Spanish economy
Beltran, L. Dary (Universidad Loyola. Departamento de Economía)
Cardenete Flores, Manuel Alejandro (Universidad Loyola. Departamento de Economía)
Sancho Pifarré, Ferran (Universitat Autònoma de Barcelona. Departament d'Economia i d'Història Econòmica)
Institut d'Anàlisi Econòmica
Universitat Autònoma de Barcelona. Unitat de Fonaments de l'Anàlisi Econòmica

Date:	2024
Abstract:	In response to increased awareness of climate change, environmental sustainability has become a policy objective in Europe. Despite a decrease in greenhouse gas emissions, the European Commission deems current progress insufficient. Discussions on implementing environmental policies persist, with environmental taxation emerging as one of the most controversial yet potentially effective economic instruments for reducing emissions. However, the extent of its impact on the economy remains under debate, as improvements in welfare and environmental quality hinge on various economic, political, and public preference factors. Therefore, we analyse the economic impact of introducing an environmental tax to achieve emission reduction targets in Spain, while also testing two systems for recycling tax revenues. This allows us to assess the potential for a second dividend. We select Spain as the unit of analysis due to its minimal utilisation of environmental taxes, as it ranks among the European countries that are least active in combating climate change using taxation.
Grants:	Agencia Estatal de Investigación PID2020-116771GB-I00 Agència de Gestió d'Ajuts Universitaris i de Recerca 2021/SGR-00194
Note:	The first and second author thank the support of the Climamodel-SEJ511 project funded by PAIDI, Junta de Andalucía.
Rights:	Aquest document està subjecte a una llicència d'ús Creative Commons. Es permet la reproducció total o parcial, la distribució, i la comunicació pública de l'obra, sempre que no sigui amb finalitats comercials, i sempre que es reconegui l'autoria de l'obra original. No es permet la creació d'obres derivades.
Language:	Anglès
Series:	Departament d'Economia i d'Història Econòmica. Unitat de Fonaments de l'Anàlisi Econòmica. Working papers ; 975.24
Document:	Working paper
Subject:	Environmental taxation ; Emissions mitigation ; Tax recycling

Adreça alternativa: https://ideas.repec.org/p/aub/autbar/975.24.html

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Research literature > Working papers > Fundamentals Unit of the Economic Analysis. Working papers