Template-Type: ReDIF-Article 1.0
Author-Name:  Dorothée Charlier, Mouez Fodha, and Djamel Kirat
Title:  Residential CO2 Emissions in Europe and Carbon Taxation: A Country-Level Assessment
Classification-JEL: F0
Volume:  Volume 44
Issue:  Number 5
Year:  2023
Abstract:  This paper examines the determinants of residential CO2 emissions, which are not covered by the European Union Emissions Trading System (EU ETS), in 19 European countries between 2000-2017. Using both static and dynamic panel models, we found strong relationships between CO2 emissions per capita, GDP per capita, energy prices and heating needs. We then assessed the impact of European carbon taxation and show that a ¬20/tonne CO2 tax lowers emissions by 1% on average. We found that this tax affects countries differently in terms of tax revenue-to-GDP ratio. Poland and the Czech Republic would have to pay the highest contribution, and Portugal and Denmark the lowest. Finally, we propose a scenario that equalizes countries' tax burdens. We show that, were Europe to redistribute all tax revenues, the main beneficiaries would be Poland and Belgium, while Denmark and Luxembourg would have to pay a surtax. 
Handle: RePEc:aen:journl:ej44-5-Charlier
File-URL: http://www.iaee.org/en/publications/ejarticle.aspx?id=4058
File-Format: text/html
File-Restriction: Access to full text is restricted to IAEE members and subscribers.