Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/192414 
Year of Publication: 
2005
Series/Report no.: 
Discussion Papers No. 432
Publisher: 
Statistics Norway, Research Department, Oslo
Abstract: 
Welfare analysis of energy taxes typically shows that systems with uniform rates perform better than differentiated systems. However, most western countries include some exemptions for their energy-intensive export industry, and hence, avoid this potential welfare gain. Böhringer and Rutherford (1997) find that compared to a differentiated system, uniform taxation in combination with a wage subsidy preserve jobs in these industries at a fraction of the potential welfare gain in the German economy. This result holds in this Norwegian study where a more broad based subsidy scheme, represented by production dependent subsidies, is used to protect jobs in the Norwegian energy-intensive industry. However, the welfare cost per job preserved by this subsidy scheme amounts to about 60 percent of the wage cost per job, suggesting that these jobs are expensive to preserve.
Subjects: 
Energy taxes
Political feasibility
Competitiveness
CGE models
JEL: 
F41
H21
Q43
Q48
Document Type: 
Working Paper

Files in This Item:
File
Size
289.22 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.