Workable Environmentally Related Energy Taxes

49 Pages Posted: 17 Feb 2013

See all articles by Fernando H. Navajas

Fernando H. Navajas

Fundacion de Investigaciones Economicas Latinoamericanas (FIEL); Universidad de Buenos Aires; Universidad Nacional de La Plata

Monica Panadeiros

affiliation not provided to SSRN

Oscar Natale

affiliation not provided to SSRN

Date Written: November 2012

Abstract

This paper models an energy tax reform process out of a status quo and towards environmentally related excises, distinguishing between uniform and non-uniform tax components, positive and normative tax structures, and adopting a non- Ramsey specification. The model is implemented for Argentina, Bolivia and Uruguay, and a rebalancing of fuel taxes is found where gasoline and diesel are the main drivers, due in part to higher estimates of the environmental costs of diesel relative to gasoline than those found in Parry and Strand (2010) for Chile. Environmental (mostly local) gains of the reform are significant, while fiscal impacts are positive and large. They do not, however, include double dividend effects because of price increases in widespread energy inputs triggered by the reform exercise. The tax reform has a positive distributive impact in Uruguay, while large pre-existing price distortions tend to produce negative impacts in Argentina and Bolivia.

JEL Classification: H23, Q40, Q51

Suggested Citation

Navajas, Fernando and Panadeiros, Monica and Natale, Oscar, Workable Environmentally Related Energy Taxes (November 2012). IDB Working Paper No. IDB-WP-351, Available at SSRN: https://ssrn.com/abstract=2219780 or http://dx.doi.org/10.2139/ssrn.2219780

Fernando Navajas (Contact Author)

Fundacion de Investigaciones Economicas Latinoamericanas (FIEL) ( email )

A. Cordoba 637, 4 Piso
1054 Buenos Aires
Argentina
54 11 43141990 (Phone)
54 11 43148648 (Fax)

Universidad de Buenos Aires ( email )

Av. Córdoba 2122
Buenos Aires, C1120AAQ
Argentina

Universidad Nacional de La Plata

7 Nº 776
Buenos Aires, BA 1900
Argentina

Monica Panadeiros

affiliation not provided to SSRN

No Address Available

Oscar Natale

affiliation not provided to SSRN

No Address Available

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
53
Abstract Views
670
rank
462,183
PlumX Metrics