Quantifying supply-side climate policies

Lassi Ahlvik, Jørgen Andersen, Jonas Hveding Hamang () and Torfinn Harding

No No 01/2022, Working Papers from Centre for Applied Macro- and Petroleum economics (CAMP), BI Norwegian Business School

Abstract: What are the effects of supply-side climate policies? We use global firm-level data to estimate the impact of 130 oil-tax reforms between 2000 and 2019 on oil production, exploration and discoveries. Higher taxes are found to reduce firms exploration expenditures and oil discoveries. We quantify the oil market implications and show that the existing productionbased taxes, averaging at 21%, reduce the long-term emissions by 1.3-2.7 GtCO2 annually. Increasing the global tax rate would reduce emissions almost linearly, by 0.16 GtCO2 per percentage point, while further shifting the distribution of rents from consumers to producers and governments.

Keywords: oil taxation; climate change; supply-side climate policies (search for similar items in EconPapers)
Pages: 42 pages
Date: 2022-02
New Economics Papers: this item is included in nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://hdl.handle.net/11250/2983258

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bny:wpaper:0104

Access Statistics for this paper

More papers in Working Papers from Centre for Applied Macro- and Petroleum economics (CAMP), BI Norwegian Business School Contact information at EDIRC.
Bibliographic data for series maintained by Helene Olsen ().