Share of polluting input as a sufficient statistic for burden sharing

A-Tier
Journal: Energy Economics
Year: 2023
Volume: 121
Issue: C

Authors (3)

Zhang, Da (not in RePEc) Peng, Hantang (not in RePEc) Zhang, Lin (School of Energy)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

By investigating the general equilibrium effects with theoretical analysis and computational experiments, we observe that the value share of polluting input is a sufficient statistic for the welfare incidence of a quantity-based policy in a competitive economy for short-term and commonly implemented mitigation policy. This result is robust with respect to the sectoral, regional disaggregation and consumer preference. In contrast, with a given pollution tax, the imputed welfare incidence could vary under economies with different production technologies and consumer preferences. The quantity-based policy instrument leads to a more explicit welfare incidence than the price instrument. On this basis, outcome-based criteria used in pollution reduction burden sharing across regions can simply choose the value share of polluting input as a reference base for allocation.

Technical Details

RePEc Handle
repec:eee:eneeco:v:121:y:2023:i:c:s0140988323001457
Journal Field
Energy
Author Count
3
Added to Database
2026-01-29