Vikings and virtues: a decade of CO₂taxation

Abstract

Experience with implementation of CO 2 taxes spans almost a decade in the Nordic countries, and time is ripe for an evaluation of their performance. In contrast to ex-ante forecasts, empirical research can show the extent to which such taxes deliver on the assumptions of economic theory. A survey of the existing literature shows that there are currently 20 ex-post studies of the full or partial effects of CO 2 taxes. Evaluations are complicated by frequent changes in tax rates, widespread exemptions and the 'too many variables' problem. Attempts have been made to deal with these problems by using a variety of approaches and research techniques, some more advanced than others. On balance the studies appear to show that emissions have been curbed when compared to businessas-usual forecasts, while absolute CO 2 reduction remains the exception. Among the Nordic countries, Denmark's scheme, which combines taxes with subsidies for energy efficiency, seems to have attained the most marked results, although the achieved reductions also reflect the higher carbon content of the Danish energy sector. The evaluations differ considerably in scope, approach and methodology. Methodological issues connected with expost evaluation are considered. An adequate evaluation of the impact of the CO 2 taxes, in both environmental and economic terms, will require the establishment of comprehensive panel databases of energy consumers.

How do social class position and party preference influence support for fossil fuel taxation in Nordic countries?

“…Due to the high share of service sector occupations, Nordic countries can be described as post-industrial economies (Kivivuori, 2007). Generally speaking, Nordic countries have a comparatively uniform political party system (Bengtsson et al, 2014) and have been pioneers in implementing a different type of CO2 or energy taxes (Andersen, 2004). However, Norway's rich oil resources make it an exceptional state in the Nordic context.…”

“…In this sense, it is also not surprising that the majority of Nordic countries have been pioneers in the implementation of CO2 or energy taxes (Andersen, 2004). Therefore, one may assume that the issue related to environmental issues does not separate the supporters of traditional parties very strongly.…”

Carbon taxation: A review of the empirical literature

“…The results of ex‐post analyses are generally more reliable compared to ex‐ante studies, which need to rely on numerous assumptions when formulating specific simulation scenarios (OECD, 1997). However, the validity of results from ex‐post analyses depends on the quality of data as well as the rigor and the methodological approach (Andersen, 2004). Ex‐post studies also face the difficulty to disentangle the effects of carbon taxes from other determinants (environmental and other policy measures as well as relevant economic developments) to isolate the pure causal tax effect (Rafaty et al., 2020).…”

“…and specific framework conditions (e.g., energy mix, consumption and production patterns, transport infrastructure, energy policy etc.) (Andersen, 2004). Ex‐post evaluations generally identify smaller effects of carbon taxes, for example, on emissions reduction than ex‐ante simulations (Rafaty et al., 2020).…”

Referenzplan als Grundlage für einen wissenschaftlich fundierten und mit den Pariser Klimazielen in Einklang stehenden Nationalen Energie- und Klimaplan für Österreich (Ref-NEKP) - Gesamtband

“…World Bank, 2018). Empirische Studien belegen, dass CO 2 -Preise substanziell zur Reduktion von THG-Emissionen beitragen (Andersen, 2004;Lawley und Thivierge, 2016;Murray und Rivers, 2015; Tvinnereim und Mehling, 2018), ohne Wirtschaftswachstum oder Beschäftigung maßgeblich zu beeinflussen (Martin u. a., 2014;Murray und Rivers, 2015;Yamazaki, 2017).…”