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Regular version of the site

Book chapter

Conventional Energy Taxes vs. Carbon-Based Incentive Instruments in Emission Regulation

As a useful tool of climate mitigation strategies, carbon-based incentive instruments are becoming an increasingly popular subject of academic discussion. At the same time, the conventional energy taxes which do not directly target carbon content of fossil fuels but may still have a significant impact on emissions level, due to wide economic coverage, are often placed outside of such discussion. This research is dedicated to fulfilling this gap – it aims to estimate the relative impact of conventional energy taxes, carbon tax and cap-and trade system on the basis of feasible GLS regression model on panel data for European countries in 1995-2016. The results indicate that the impact of conventional energy taxes on carbon intensity is twice as high as the impact of either carbon tax or cap-and-trade.