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  • Jaume Freire

New article published on taxation and the rebound effect

I have recently published an article at Energy Efficiency journal on energy taxation and the rebound effect. It sheds light on the potential use of energy taxes to counteract the rebound effect. You can find it here.


I use a dynamic energy-economy computable general equilibrium (CGE) model, and test simultaneously an energy productivity improvement and different sets of energy taxes. It has been partly developed under the Jevons' Project.


So, are taxes useful to fight the rebound effect?



The short answer is yes. A wise energy taxation policy can reduce or even counteract the rebound effect. The good news is that, after setting a tax that totally counteracted the rebound, some economic benefits still remained from the energy productivity improvement.


More research using different applied methods, frameworks and areas is necessary to state strong conclusions, but the results of this study are promising.


More details can be found in the article.


Cheers!

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