Author(s)

M. Wier, K. Birr-Pedersen, H. K. Jacobsen & J. Klok

Abstract

Environmental taxation and distributional consequences M. ~ i e r ' , K. ~irr-pedersen2, H. K. ~acobsen~ & J. ~ l o k ~ I A KF, Danish Institute of Local Government Studies, Denmark 2 National Environmental Research Institute, Denmark 3 Risoe National Laboratory, Denmark 4 Danish Ministry of Taxation, Denmark Abstract Denmark today carries one of the heaviest environmental tax burdens in the world, bringing in around 10% of public revenues. While evaluations have shown the positive effects of the Danish C02 and other environmental taxes, a considerable barrier for an increased use of these instruments today seems to be a widespread perception of their socially adverse effects. The aim of the present paper is to further examine the direct and indirect distributional consequences of Danish C02-taxes on industry and households, based on actual tax payments, directly and indirectly paid by households. Thus, we will evaluate the C02-tax burden for households in different income brackets, in order t

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