Abstract

http://ssrn.com/abstract=2212939
 


 



The Consumer Burden of a Carbon Tax on Gasoline


Kevin A. Hassett


American Enterprise Institute (AEI)

Aparna Mathur


American Enterprise Institute (AEI)

Gilbert E. Metcalf


Tufts University - Department of Economics; National Bureau of Economic Research (NBER)

May 26, 2009

Fuel Taxes and the Poor: The Distributional Effects of Gasoline Taxation and Their Implications for Climate Policy, Thomas Sterner, ed., Resources for the Future Press, 2011

Abstract:     
This paper measures the incidence of a carbon tax on gasoline using current income and two measures of lifetime income to rank households. Our results suggest that carbon taxes on gasoline are more regressive when annual income is used as a measure of economic welfare than when lifetime income measures are used. In addition we find that the regional variation in the gasoline tax burden is likely to be modest varying by less than one-half of a percentage point with little fluctuation over the years of our analysis. These results carry through when we consider the incidence of the current state gasoline taxes, both across income deciles as well as across regions.

Number of Pages in PDF File: 31

Keywords: carbon tax, gasoline, tax policy, tax burden

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Date posted: February 8, 2013  

Suggested Citation

Hassett, Kevin A. and Mathur, Aparna and Metcalf, Gilbert E., The Consumer Burden of a Carbon Tax on Gasoline (May 26, 2009). Fuel Taxes and the Poor: The Distributional Effects of Gasoline Taxation and Their Implications for Climate Policy, Thomas Sterner, ed., Resources for the Future Press, 2011. Available at SSRN: http://ssrn.com/abstract=2212939

Contact Information

Kevin A. Hassett
American Enterprise Institute (AEI) ( email )
1150 17th Street, N.W.
Washington, DC 20036
United States
202.862.7157 (Phone)
202.862.7177 (Fax)
Aparna Mathur (Contact Author)
American Enterprise Institute (AEI) ( email )
1150 17th Street, N.W.
Washington, DC 20036
United States
202-868-6026 (Phone)
HOME PAGE: http://www.aei.org/scholar/aparna-mathur/
Gilbert E. Metcalf
Tufts University - Department of Economics ( email )
Medford, MA 02155
United States
617-627-3685 (Phone)
617-627-3917 (Fax)
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
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