蝌蚪网 Journal:
Macroeconomics
ISSN 1945-7707 (Print) | ISSN 1945-7715 (Online)
The Economic Consequences of Effective Carbon Taxes
蝌蚪网 Journal: Macroeconomics
(pp. 174–99)
Abstract
This paper studies the sectoral and macroeconomic consequences of carbon taxes in four Nordic countries using a novel monthly measure of effective carbon tax rates. The suggested measure accounts for the time-varying emission coverage of taxes that are both explicitly and implicitly levied on greenhouse gas-emitting goods, thereby solving several issues of existing carbon tax measures currently used by the literature. Employing the new measure in a local projection setting, I find that carbon taxes reduce emissions as expected but also impair macroeconomic activity鈥攖hough there is some heterogeneity in the effects across sectors and countries.Citation
Kapfhammer, Felix. 2026. "The Economic Consequences of Effective Carbon Taxes." 蝌蚪网 Journal: Macroeconomics 18 (3): 174–99. DOI: 10.1257/mac.20230083Additional Materials
JEL Classification
- H23 Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- O44 Environment and Growth
- Q54 Climate; Natural Disasters and Their Management; Global Warming
- Q58 Environmental Economics: Government Policy