Distributional effects of subsidy removal and implementation of carbon taxes in Mexican households |
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| Affiliation: | 1. Instituto Nacional de Electicidad y Energías Limpias, Reforma 113, Col. Palmira, Cuernavaca 62490, Mexico;2. Rede, Universidade de Vigo, Facultade de CC.EE., Campus As Lagoas s/n, 36310 Vigo, Spain;3. Economics for Energy, Doutor Cadaval 2, 3E, 36202 Vigo, Spain;4. Posgrado de Arquitectura, Facultad de Arquitectura, Universidad Nacional Autónoma de México, Ciudad Universitaria, Coyoacán C.P. 04510, DF, Mexico;1. Economic Analysis Department, Facultad de CC. Económicas y Empresariales, University of Seville, Ramon y Cajal 1, 41018 Seville, Spain;2. Universidad Autónoma de Chile, Chile;1. Institute for Advanced Research, Shanghai University of Finance and Economics, Shanghai 200433, China;2. Key Laboratory of Mathematical Economics, Shanghai University of Finance and Economics, Ministry of Education, Shanghai 200433, China;3. Department of Economics, Business School, East China Normal University, 500 Dongchuan Road, Shanghai 200241, China;4. Energy Research School, Xiamen University, Xiamen 361005, China |
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| Abstract: | This paper presents a microsimulation using data from the National Households Income and Expenditure Survey (NHIES) from 1994 to 2010 to determine the distributional effects of the price changes arising from energy and environmental policies and their impact on Mexican households.We reported simulations of several changes in energy prices as a result of partial or total energy subsidy removal, including carbon tax. In order to examine whether the subsidy mechanism and carbon tax tend to be progressive or regressive, we evaluated the households' burden in different income levels.These simulations respond to the need for an assessment of economic and environmental impacts of energy subsidies in Mexico. This is of great importance for Mexico because of effort that has been taken in the development of energy policies, and the rising interest of the Mexican government in mitigating carbon dioxide (CO2) emissions and their concomitant environmental damage. |
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