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2018 | OriginalPaper | Buchkapitel

10. How Strong Might Be a Carbon Tax on Electricity Consumption to Reach Spanish H2020 Targets?

verfasst von : J. M. Cansino, M. A. Cardenete, M. Ordóñez, R. Román

Erschienen in: Sustainability in Innovation and Entrepreneurship

Verlag: Springer International Publishing

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Abstract

This chapter evaluates the cumulative impact (2014–2020) that a tax on electricity consumption would have on it consumption in Spain. Changes in electricity consumption are caused by increasing purchasing prices due to tax. Impact on revenues and CO2 emissions are also assessed through a model price. Tax reform is inspired on final report presented by a Group of Experts commissioned by the Government of Spain in 2014. The evaluation has been performed by considering two scenarios, without (Scenario 1) and with tax recycling between the new tax and employer-paid Social Security benefits or with tax using a price stability tool (Scenario 2). Data comes from the Social Accounting Matrix at purchase prices for Spain in 2006 (SAMESP06). Right rates of a carbon tax designed on electricity consumption would range between 6.24% and 5.52% to reach the total target.

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Fußnoten
1
The electricity tax was implemented by Law 66/1997 of 30 December 1997 on Fiscal, Administrative and Social Order Measures, and had the basic objective of obtaining revenue to counterbalance the removal of an electricity billing surcharge that was meant to provide support to the coal industry.
 
2
Reactions to CCL partly explain current improvements in Britain electricity systems (Lockwood, 2016).
 
3
Spain’s Ministry of the Environment and Rural and Marine Affairs (MMARM, 2011).
 
4
The latter work integrates a micro-econometric model and a general equilibrium model.
 
5
In IO analysis, each area of activity considered produces a single good, employing the same production technology.
 
6
Each area of activity purchases the intermediate goods that it requires at their purchase prices, taxes included. However, the burden of indirect taxes does not fall on the producer but rather on the final consumer. Therefore, the price that must be taken into account is the production price.
 
7
The total output of sector j does not correspond with the total number of uses or resources of the SAM, since it does not include the net indirect taxes (38) levied on the products making up the final demand or the trade and transport margins (39) on those same products.
 
8
Indirect taxes on products include the value added tax (VAT), taxes and duties on imports, excises, etc. The ideal would be to have these taxes expressed in a disaggregated form, especially in the case of VAT. However, the unavailability of disaggregated data of this tax by area of activity has made the consideration of all indirect taxes as a whole necessary.
 
9
The reason lies in that wage negotiations in the private sector and the establishment of the remuneration for public officials, the CPI is taken as the benchmark indicator. There are other possible assumptions, like using the total weight of salaries and wages in the sector in relation to the total wage bill, but the results obtained are very similar to those of CPI usage.
 
10
In Applied General Equilibrium (AGE) modeling, this assumption is very common (Manresa et al., 1988). The explanation is based on that households take their decision on base to real wages. This assumption is too suitable to include a labor market in the full non-linear AGE, taking account the relation between the real wages and the ration between real unemployment and the unemployment after the simulation.
 
11
The solution software used by GAMS is MINOS.
 
12
The British CCL is intended to contribute to the reduction of greenhouse gas emissions. It is a tax on the consumption of products for lighting, heating and electricity of industry, commerce, agriculture and public administration sectors and for other services. The taxed products are electricity, gas, liquid hydrocarbons and coal. This rate is applied per nominal unit of power and, in the case of electricity, is 0.0043 £ per kilowatt-hour.
 
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Metadaten
Titel
How Strong Might Be a Carbon Tax on Electricity Consumption to Reach Spanish H2020 Targets?
verfasst von
J. M. Cansino
M. A. Cardenete
M. Ordóñez
R. Román
Copyright-Jahr
2018
DOI
https://doi.org/10.1007/978-3-319-57318-2_10

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