• français
    • English
  • English 
    • français
    • English
  • Login
JavaScript is disabled for your browser. Some features of this site may not work without it.
BIRD Home

Browse

This CollectionBy Issue DateAuthorsTitlesSubjectsJournals BIRDResearch centres & CollectionsBy Issue DateAuthorsTitlesSubjectsJournals

My Account

Login

Statistics

View Usage Statistics

Fostering Renewables and Recycling a Carbon Tax: Joint Aggregate and Intergenerational Redistributive Effects

Thumbnail
View/Open
14-05-Cahier-R-2014-08-Gonand.pdf (938.1Kb)
Date
2014
Publisher city
Paris
Publisher
Université Paris-Dauphine
Collection title
Les Cahiers de la Chaire Economie du Climat
Collection Id
2014-08
Dewey
Economie de la terre et des ressources naturelles
Sujet
Energy transition; intergenerational redistribution; overlapping generations; carbon tax; general equilibrium
JEL code
D.D5.D58; D.D6.D63; E.E6.E62; L.L7.L70; Q.Q2.Q28; Q.Q4.Q43
URI
https://basepub.dauphine.fr/handle/123456789/13361
Collections
  • LEDa : Publications
Metadata
Show full item record
Author
Gonand, Frédéric
191547 Chaire économie du climat
163511 Laboratoire d'Economie de Dauphine [LEDa]
Type
Document de travail / Working paper
Item number of pages
40
Abstract (EN)
A rising share of renewables in the energy mix push es up the average price of energy - and so does a carbon tax. However the former bolsters the accumulation of capital whereas the latter, if fully recycled, does not. Thus, in general equilibrium, the effects on growth and intertemporal welfare of these two environmental po licies differ. The present article assesses and compares these effects. It relies on a computable general equilibrium model with overlapping generations, an energy module and a pub lic finance module. The main result is that an increasing share of renewables in the energy mix and a fully recycled carbon tax have opposite (though limited) impacts on activity and i ndividuals’ intertemporal welfare in the long run. The recycling of a carbon tax fosters consumption and labour supply, and thus growth and welfare, whereas an increasing share of renewables does not. Results also suggest that a higher share of renewables and a recycled carbon tax trigger intergenerational redistributive effects, with the former being relat ively detrimental for young generations and the latter being pro-youth. The policy implication is that a social planner seeking to modify the structure of the energy mix while achieving some ne utrality as concerns the GDP and triggering some proyouth intergenerational equity, could usefully contemplate the joint implementation of higher quantitative targets for the future development of renewables and a carbon tax fully recycled through lower proportional taxes.

  • Accueil Bibliothèque
  • Site de l'Université Paris-Dauphine
  • Contact
SCD Paris Dauphine - Place du Maréchal de Lattre de Tassigny 75775 Paris Cedex 16

 Content on this site is licensed under a Creative Commons 2.0 France (CC BY-NC-ND 2.0) license.