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Economic, Environmental and International Trade Effects of the EU Directive on Energy Tax Harmonization

Author

Listed:
  • Kohlhaas, M.
  • Schumacher, K.
  • Diekmann, J.
  • Cames, M.
  • Schumacher, D.
Abstract
In October 2003, the European Union introduced a Directive which widens the scope of the EU’s minimum taxation system from mineral oils to all energy products including coal, natural gas and electricity. It aims at reducing distortions that currently exist between Member States as well as between energy products. In addition, the Directive increases incentives to use energy more efficiently. This will lead to changes in the energy tax schemes in a number of countries, in particular some southern Member Countries (Greece, Spain, Portugal) and most of the Eastern European EU candidate countries. In this paper, we analyze the effects of the EU energy tax harmonization, with particular focus on the EU acceding Eastern European countries with GTAP-E, a computable general equilibrium model. We investigate the effects of the tax harmonization on overall economic growth and sectoral development. Special attention is paid to international trade in order to analyze if competitiveness concerns which have been frequently forwarded in the context of energy taxation are valid. Furthermore, the effect on energy consumption and emissions and thus the contribution to the EU’s climate change targets is analyzed.

Suggested Citation

  • Kohlhaas, M. & Schumacher, K. & Diekmann, J. & Cames, M. & Schumacher, D., 2004. "Economic, Environmental and International Trade Effects of the EU Directive on Energy Tax Harmonization," Conference papers 331275, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331275
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    References listed on IDEAS

    as
    1. McDougall, Robert, 2000. "A New Regional Household Demand System for GTAP," GTAP Working Papers 404, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
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    7. Burniaux, Jean-Marc & Truong Truong, 2002. "GTAP-E: An Energy-Environmental Version of the GTAP Model," GTAP Technical Papers 923, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    8. Elhanan Helpman, 1998. "Explaining the structure of foreign trade: Where do we stand?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 134(4), pages 573-589, December.
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    10. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
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    Citations

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    Cited by:

    1. Dannenberg, Astrid & Mennel, Tim & Moslener, Ulf, 2008. "What does Europe pay for clean energy?--Review of macroeconomic simulation studies," Energy Policy, Elsevier, vol. 36(4), pages 1318-1330, April.
    2. Daniela Pîrvu & Emilia Clipici, 2010. "Perspectives of the Environmental Taxes Evolution in the European Union," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 13(38), pages 147-161, December.
    3. Alberto Gago & Xavier Labandeira & Xiral López Otero, 2014. "A Panorama on Energy Taxes and Green Tax Reforms," Hacienda Pública Española / Review of Public Economics, IEF, vol. 208(1), pages 145-190, March.
    4. Bilgili, Faik, 2010. "Energy tax harmonization in EU: Time series and panel data evidence," MPRA Paper 24013, University Library of Munich, Germany.
    5. Mihaela NICOLAU, 2010. "The influence of taxation on energy products price and consequences on the global economy," EuroEconomica, Danubius University of Galati, issue 24, pages 99-109, March.
    6. Magdalena Radulescu & Crenguta Ileana Sinisi & Constanta Popescu & Silvia Elena Iacob & Luigi Popescu, 2017. "Environmental Tax Policy in Romania in the Context of the EU: Double Dividend Theory," Sustainability, MDPI, vol. 9(11), pages 1-20, October.

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    More about this item

    Keywords

    Resource /Energy Economics and Policy; Research Methods/ Statistical Methods;

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • F18 - International Economics - - Trade - - - Trade and Environment
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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