Data and Code for: "The Macroeconomic Impact of Europe’s Carbon Taxes"

Principal Investigator(s): View help for Principal Investigator(s) Gilbert E. Metcalf, Tufts University; James H. Stock, Harvard University. Department of Economics

Version: View help for Version V1

Name	File Type	Size	Last Modified
figures			03/09/2022 04:26:PM

Project Description

Summary: We estimate the macroeconomic impacts of carbon taxes on GDP and employment growth rates using 30 years of data on carbon taxation in various European countries. We find no evidence for a negative impact on employment or GDP growth but rather find a zero to modest positive impact. We also find a cumulative emissions reduction on the order of 4 to 6 percent for a $40/ton CO2 tax covering 30% of emissions. Reductions would likely be greater for a broad-based U.S. carbon tax since European carbon taxes typically do not cover those sectors with the lowest marginal abatement costs.

Scope of Project

Subject Terms: climate change; carbon taxes

JEL Classification:
      Q43 Energy and the Macroeconomy
      Q54 Climate; Natural Disasters and Their Management; Global Warming
      Q58 Environmental Economics: Government Policy

Geographic Coverage: Europe

Universe: GDP and Employment in EU countries

Methodology

Unit(s) of Observation: country year observations

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Published Versions

V1 [2022-09-16]

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DDI 2.5

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