European University Institute Library

Getting energy prices right, from principle to practice, Ian Parry, Dirk Heine, Eliza Lis, and Shanjun Li

eng

Includes bibliographical references and index

international or intergovernmental publication

illustrationsmaps

index present

non fiction

Getting energy prices right

bibliography

890328811

Ian Parry, Dirk Heine, Eliza Lis, and Shanjun Li

from principle to practice

Energy taxes can produce substantial environmental and revenue benefits and are an important component of countries' fiscal systems. Although the principle that these taxes should reflect global warming, air pollution, road congestion, and other adverse environmental impacts of energy use is well established, there has been little previous work providing guidance on how countries can put this principle into practice. This book develops a practical methodology, and associated tools, to show how the major environmental damages from energy can be quantified for different countries and used to design the efficient set of energy taxes. The results, which are illustrated for more than 150 countries, suggest there is pervasive mispricing of energy across developed and developing countries alike with much at stake in policy reform. At a global level, implementing efficient energy prices would reduce carbon emissions by an estimated 23 percent and fossil-fuel air pollution deaths by 63 percent, while raising revenues (badly needed for fiscal consolidation and reducing other burdensome taxes) averaging 2.6 percent of GDP.--, Provided by Publisher

Cover; Contents; Foreword; Acknowledgments; Abbreviations; 1 Summary for Policymakers; Figures; 1.1. Corrective Fuel Taxes to Reflect Environmental Costs, Selected Countries, 2010; 1.2. Impacts of Fuel Tax Reform, Selected Countries, 2010; 2 Energy Systems, Environmental Problems, and Current Fiscal Policy: A Quick Look; Overview of Energy Systems; 2.1. Primary Energy Consumption per Capita, Selected Countries, 2010; 2.2. Electricity Consumption per Capita, Selected Countries, 2010; 2.3. Motor Vehicle Ownership Rates, Selected Countries, 2010; Environmental Side Effects. 2.4. Share of Final Energy Use by Fuel Type, Selected Countries, 20102.5. Carbon Dioxide (CO2) Emissions per Capita, Selected Countries, 2010; 2.6. Urban Population, Selected Countries, 2010; Boxes; 2.1. Broader Environmental Effects beyond the Study Scope; 2.7. Projected Global Energy-Related CO2 Emissions; 2.8. Projected Long-Term Warming above Pre-Industrial Temperatures from Stabilization at Different Greenhouse Gas Concentrations; 2.9. Air Pollution Concentrations, Selected Countries, 2010; 2.10. Air Pollution Deaths by Region, 2010. 2.11. Vehicles and Road Capacity, Selected Countries, 2007Fiscal Policies Currently Affecting Energy and Transportation; 2.12. Road Deaths, Selected Countries, 2010; 2.13. Revenue from Environment-Related Taxes as Percent of Total Revenue in OECD Countries, 2010; 2.14. Excise Tax Rates on Motor Fuels, 2010; 2.15. Subsidies for Fossil Fuel Energy by Region and Fuel Type, 2011; 3 Rationale for, and Design of, Fiscal Policy to "Get Energy Prices Right"; Policy Instrument Choice for Environmental Protection; 3.1. Environmental Effectiveness of Alternative Instruments: Further Examples. 3.1. Illustrated Sources of Fossil Fuel CO2 Reductions under Different Policies3.2. Defining Economic Costs; 3.3.1. Shape of the Air Pollution Damage Function; 3.3. Shape of the Air Pollution Damage Function; 3.4. Coverage of Energy Products under the Value-Added Tax (VAT); 3.5. Environmental Tax Shifting in Practice; 3.2. Price Experience in the European Union Emissions Trading System; Further Design Issues; 3.6. Unintended Consequences and Market Price Distortions; 3.7. Examples of Distance-Based Charging for Vehicles; 3.8. Reconciling Fiscal and Environmental Objectives in Vehicle Taxation. 3.9. Pay-as-You-Drive Auto Insurance3.10. The Energy Paradox Controversy; 3.3. Distributional Incidence of Energy Subsidies; Summary; 4 Measuring Pollution Damage from Fuel Use; CO2 Damage; Local Air Pollution Damage; 4.1. Intake Fractions: Some Technicalities; 4.1. Baseline Mortality Rates for Illnesses Whose Prevalence Is Aggravated by Pollution, Selected Regions, 2010; 4.2. The Human Capital Approach; 4.3. Determinants Other than Income of Mortality Risk Valuation; Tables; 4.1. Examples of Mortality Risk Valuations Used in Previous Government Studies