Under What Conditions Does a Carbon Tax on Fossil Fuels Stimulate Biofuels?
A carbon tax is an efficient economic instrument to reduce emissions of carbon dioxide released from fossil fuel burning. Its impacts on production of renewable energy depend on how it is designed -- particularly in the context of the penetration o...
| Main Authors: | , , |
|---|---|
| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
2012
|
| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110606142136 http://hdl.handle.net/10986/3441 |
| id |
okr-10986-3441 |
|---|---|
| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ANTHROPOGENIC EMISSIONS ATMOSPHERE BIOMASS BUSINESS AS USUAL SCENARIO CAPITAL INVESTMENTS CARBON CARBON ABATEMENT CARBON DEBT CARBON DIOXIDE CARBON EMISSIONS CARBON POLICIES CARBON SOURCES CARBON TAX CARBON TAXES CARBON-INTENSIVE MANUFACTURING CHEMICALS CLEAN ENERGY CLEAN ENERGY TECHNOLOGIES CLEANER PRODUCTION CLIMATE CLIMATE CHANGE CLIMATE CHANGE MITIGATION CLIMATE CHANGE MITIGATION POLICIES CLIMATE POLICY CLIMATE PROTECTION CLIMATIC CHANGE CO CO2 COAL COMBUSTION COMPUTABLE GENERAL EQUILIBRIUM MODEL COST OF CARBON CRUDE OIL CRUDE OIL PRICE DEMAND FOR ENERGY DIESEL DISPOSABLE INCOME DOMESTIC SUPPLY DRIVERS DRIVING ECOLOGICAL ECONOMICS ECOLOGICAL ZONES EFFICIENCY IMPROVEMENTS ELASTICITIES ELASTICITY ELASTICITY OF SUBSTITUTION ELECTRICITY ELECTRICITY GENERATION ELECTRICITY SUPPLY EMISSION EMISSION POLICIES EMISSION REDUCTION EMISSION REDUCTION POTENTIAL EMISSION TAX EMISSIONS EMISSIONS FROM FUEL EMISSIONS FROM LAND-USE CHANGE END-USE ENERGY CONSUMPTION ENERGY ECONOMICS ENERGY EFFICIENCY ENERGY INTENSITY ENERGY INTENSIVE ENERGY MIX ENERGY SERVICE ENERGY SOURCES ENERGY TAX ENERGY TRANSFORMATION ENVIRONMENTAL BENEFITS ENVIRONMENTAL DAMAGE ENVIRONMENTAL IMPACTS ENVIRONMENTAL POLICY ENVIRONMENTAL PROTECTION ENVIRONMENTAL RESEARCH ETHANOL FOREST FOREST LAND FORESTRY FOSSIL ENERGY FOSSIL FUEL FOSSIL FUEL BURNING FOSSIL FUELS FUEL CONSUMPTION FUEL PRICE FUEL SUPPLY FUEL TAX GAS PRODUCTION GASOLINE GHG GLOBAL CARBON TAX GLOBAL ENERGY MIX GLOBAL ENERGY SUPPLY GREENHOUSE GREENHOUSE GAS GREENHOUSE GAS EMISSION GREENHOUSE GAS EMISSION MITIGATION GREENHOUSE GASES HOUSEHOLD EXPENDITURES HOUSEHOLD SECTOR IMPACTS OF FUEL PRICE INCOME TAXES INTERNATIONAL ENERGY AGENCY IPCC LAND USE LAND USE CHANGE LIQUID FUELS MITIGATION POTENTIAL NATURAL GAS NEGATIVE IMPACTS NUCLEAR POWER OILS PETROLEUM PRICE PETROLEUM PRODUCTS POWER GENERATION PRICE VOLATILITY REFINED OIL RENEWABLE ENERGY RENEWABLE ENERGY SOURCES ROAD ROAD TRANSPORT ROAD TRANSPORT SECTOR TAX POLICY TAX RATE TAX RATES TAX REVENUE TAX REVENUES TAXATION TOTAL ENERGY DEMAND TRANSPORT TRANSPORT SECTOR TRANSPORT SERVICES TRANSPORTATION TRANSPORTATION FUEL TRUE WELFARE FUNCTION |
| spellingShingle |
ANTHROPOGENIC EMISSIONS ATMOSPHERE BIOMASS BUSINESS AS USUAL SCENARIO CAPITAL INVESTMENTS CARBON CARBON ABATEMENT CARBON DEBT CARBON DIOXIDE CARBON EMISSIONS CARBON POLICIES CARBON SOURCES CARBON TAX CARBON TAXES CARBON-INTENSIVE MANUFACTURING CHEMICALS CLEAN ENERGY CLEAN ENERGY TECHNOLOGIES CLEANER PRODUCTION CLIMATE CLIMATE CHANGE CLIMATE CHANGE MITIGATION CLIMATE CHANGE MITIGATION POLICIES CLIMATE POLICY CLIMATE PROTECTION CLIMATIC CHANGE CO CO2 COAL COMBUSTION COMPUTABLE GENERAL EQUILIBRIUM MODEL COST OF CARBON CRUDE OIL CRUDE OIL PRICE DEMAND FOR ENERGY DIESEL DISPOSABLE INCOME DOMESTIC SUPPLY DRIVERS DRIVING ECOLOGICAL ECONOMICS ECOLOGICAL ZONES EFFICIENCY IMPROVEMENTS ELASTICITIES ELASTICITY ELASTICITY OF SUBSTITUTION ELECTRICITY ELECTRICITY GENERATION ELECTRICITY SUPPLY EMISSION EMISSION POLICIES EMISSION REDUCTION EMISSION REDUCTION POTENTIAL EMISSION TAX EMISSIONS EMISSIONS FROM FUEL EMISSIONS FROM LAND-USE CHANGE END-USE ENERGY CONSUMPTION ENERGY ECONOMICS ENERGY EFFICIENCY ENERGY INTENSITY ENERGY INTENSIVE ENERGY MIX ENERGY SERVICE ENERGY SOURCES ENERGY TAX ENERGY TRANSFORMATION ENVIRONMENTAL BENEFITS ENVIRONMENTAL DAMAGE ENVIRONMENTAL IMPACTS ENVIRONMENTAL POLICY ENVIRONMENTAL PROTECTION ENVIRONMENTAL RESEARCH ETHANOL FOREST FOREST LAND FORESTRY FOSSIL ENERGY FOSSIL FUEL FOSSIL FUEL BURNING FOSSIL FUELS FUEL CONSUMPTION FUEL PRICE FUEL SUPPLY FUEL TAX GAS PRODUCTION GASOLINE GHG GLOBAL CARBON TAX GLOBAL ENERGY MIX GLOBAL ENERGY SUPPLY GREENHOUSE GREENHOUSE GAS GREENHOUSE GAS EMISSION GREENHOUSE GAS EMISSION MITIGATION GREENHOUSE GASES HOUSEHOLD EXPENDITURES HOUSEHOLD SECTOR IMPACTS OF FUEL PRICE INCOME TAXES INTERNATIONAL ENERGY AGENCY IPCC LAND USE LAND USE CHANGE LIQUID FUELS MITIGATION POTENTIAL NATURAL GAS NEGATIVE IMPACTS NUCLEAR POWER OILS PETROLEUM PRICE PETROLEUM PRODUCTS POWER GENERATION PRICE VOLATILITY REFINED OIL RENEWABLE ENERGY RENEWABLE ENERGY SOURCES ROAD ROAD TRANSPORT ROAD TRANSPORT SECTOR TAX POLICY TAX RATE TAX RATES TAX REVENUE TAX REVENUES TAXATION TOTAL ENERGY DEMAND TRANSPORT TRANSPORT SECTOR TRANSPORT SERVICES TRANSPORTATION TRANSPORTATION FUEL TRUE WELFARE FUNCTION Timilsina, Govinda R. Csordas, Stefan Mevel, Simon Under What Conditions Does a Carbon Tax on Fossil Fuels Stimulate Biofuels? |
| geographic_facet |
The World Region The World Region |
| relation |
Paper is funded by the Knowledge for Change
Program (KCP),Policy Research working paper ; no. WPS 5678 |
| description |
A carbon tax is an efficient economic
instrument to reduce emissions of carbon dioxide released
from fossil fuel burning. Its impacts on production of
renewable energy depend on how it is designed --
particularly in the context of the penetration of biofuels
into the energy supply mix for road transportation. Using a
multi-sector, multi-country computable general equilibrium
model, this study shows first that a carbon tax with the
entire tax revenue recycled to households through a lump-sum
transfer does not stimulate biofuel production
significantly, even at relatively high tax rates. This
reflects the high cost of carbon dioxide abatement through
biofuels substitution, relative to other energy substitution
alternatives; in addition, the carbon tax will have negative
economy-wide consequences that reduce total demand for all
fuels. A combined carbon tax and biofuel subsidy policy,
where part of the carbon tax revenue is used to finance a
biofuel subsidy, would significantly stimulate market
penetration of biofuels. Although the carbon tax and biofuel
subsidy policy would cause higher loss in global economic
output compared with the carbon tax with lump sum revenue
redistribution, the incremental output loss is relatively small. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Timilsina, Govinda R. Csordas, Stefan Mevel, Simon |
| author_facet |
Timilsina, Govinda R. Csordas, Stefan Mevel, Simon |
| author_sort |
Timilsina, Govinda R. |
| title |
Under What Conditions Does a Carbon Tax on Fossil Fuels Stimulate Biofuels? |
| title_short |
Under What Conditions Does a Carbon Tax on Fossil Fuels Stimulate Biofuels? |
| title_full |
Under What Conditions Does a Carbon Tax on Fossil Fuels Stimulate Biofuels? |
| title_fullStr |
Under What Conditions Does a Carbon Tax on Fossil Fuels Stimulate Biofuels? |
| title_full_unstemmed |
Under What Conditions Does a Carbon Tax on Fossil Fuels Stimulate Biofuels? |
| title_sort |
under what conditions does a carbon tax on fossil fuels stimulate biofuels? |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110606142136 http://hdl.handle.net/10986/3441 |
| _version_ |
1764387003074347008 |
| spelling |
okr-10986-34412021-04-23T14:02:09Z Under What Conditions Does a Carbon Tax on Fossil Fuels Stimulate Biofuels? Timilsina, Govinda R. Csordas, Stefan Mevel, Simon ANTHROPOGENIC EMISSIONS ATMOSPHERE BIOMASS BUSINESS AS USUAL SCENARIO CAPITAL INVESTMENTS CARBON CARBON ABATEMENT CARBON DEBT CARBON DIOXIDE CARBON EMISSIONS CARBON POLICIES CARBON SOURCES CARBON TAX CARBON TAXES CARBON-INTENSIVE MANUFACTURING CHEMICALS CLEAN ENERGY CLEAN ENERGY TECHNOLOGIES CLEANER PRODUCTION CLIMATE CLIMATE CHANGE CLIMATE CHANGE MITIGATION CLIMATE CHANGE MITIGATION POLICIES CLIMATE POLICY CLIMATE PROTECTION CLIMATIC CHANGE CO CO2 COAL COMBUSTION COMPUTABLE GENERAL EQUILIBRIUM MODEL COST OF CARBON CRUDE OIL CRUDE OIL PRICE DEMAND FOR ENERGY DIESEL DISPOSABLE INCOME DOMESTIC SUPPLY DRIVERS DRIVING ECOLOGICAL ECONOMICS ECOLOGICAL ZONES EFFICIENCY IMPROVEMENTS ELASTICITIES ELASTICITY ELASTICITY OF SUBSTITUTION ELECTRICITY ELECTRICITY GENERATION ELECTRICITY SUPPLY EMISSION EMISSION POLICIES EMISSION REDUCTION EMISSION REDUCTION POTENTIAL EMISSION TAX EMISSIONS EMISSIONS FROM FUEL EMISSIONS FROM LAND-USE CHANGE END-USE ENERGY CONSUMPTION ENERGY ECONOMICS ENERGY EFFICIENCY ENERGY INTENSITY ENERGY INTENSIVE ENERGY MIX ENERGY SERVICE ENERGY SOURCES ENERGY TAX ENERGY TRANSFORMATION ENVIRONMENTAL BENEFITS ENVIRONMENTAL DAMAGE ENVIRONMENTAL IMPACTS ENVIRONMENTAL POLICY ENVIRONMENTAL PROTECTION ENVIRONMENTAL RESEARCH ETHANOL FOREST FOREST LAND FORESTRY FOSSIL ENERGY FOSSIL FUEL FOSSIL FUEL BURNING FOSSIL FUELS FUEL CONSUMPTION FUEL PRICE FUEL SUPPLY FUEL TAX GAS PRODUCTION GASOLINE GHG GLOBAL CARBON TAX GLOBAL ENERGY MIX GLOBAL ENERGY SUPPLY GREENHOUSE GREENHOUSE GAS GREENHOUSE GAS EMISSION GREENHOUSE GAS EMISSION MITIGATION GREENHOUSE GASES HOUSEHOLD EXPENDITURES HOUSEHOLD SECTOR IMPACTS OF FUEL PRICE INCOME TAXES INTERNATIONAL ENERGY AGENCY IPCC LAND USE LAND USE CHANGE LIQUID FUELS MITIGATION POTENTIAL NATURAL GAS NEGATIVE IMPACTS NUCLEAR POWER OILS PETROLEUM PRICE PETROLEUM PRODUCTS POWER GENERATION PRICE VOLATILITY REFINED OIL RENEWABLE ENERGY RENEWABLE ENERGY SOURCES ROAD ROAD TRANSPORT ROAD TRANSPORT SECTOR TAX POLICY TAX RATE TAX RATES TAX REVENUE TAX REVENUES TAXATION TOTAL ENERGY DEMAND TRANSPORT TRANSPORT SECTOR TRANSPORT SERVICES TRANSPORTATION TRANSPORTATION FUEL TRUE WELFARE FUNCTION A carbon tax is an efficient economic instrument to reduce emissions of carbon dioxide released from fossil fuel burning. Its impacts on production of renewable energy depend on how it is designed -- particularly in the context of the penetration of biofuels into the energy supply mix for road transportation. Using a multi-sector, multi-country computable general equilibrium model, this study shows first that a carbon tax with the entire tax revenue recycled to households through a lump-sum transfer does not stimulate biofuel production significantly, even at relatively high tax rates. This reflects the high cost of carbon dioxide abatement through biofuels substitution, relative to other energy substitution alternatives; in addition, the carbon tax will have negative economy-wide consequences that reduce total demand for all fuels. A combined carbon tax and biofuel subsidy policy, where part of the carbon tax revenue is used to finance a biofuel subsidy, would significantly stimulate market penetration of biofuels. Although the carbon tax and biofuel subsidy policy would cause higher loss in global economic output compared with the carbon tax with lump sum revenue redistribution, the incremental output loss is relatively small. 2012-03-19T18:02:31Z 2012-03-19T18:02:31Z 2011-06-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110606142136 http://hdl.handle.net/10986/3441 English Paper is funded by the Knowledge for Change Program (KCP),Policy Research working paper ; no. WPS 5678 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region |