Carbon taxes: Good for the Planet, not bad for the Economy
Berlin Lunchtime Meeting
SPEAKER: Dr. Ralf Martin (Photo), London School of Economics
COMMENT: PD Dr. Siegfried Gelbhaar, Universität Trier
CHAIR: Prof. Dr. Claudia Kemfert, DIW Berlin
In a recent study researchers from the London School of Economics (LSE) show that carbon taxes can reduce pollution without harming the economy.
In 2001 the U.K. government introduced a tax on various energy fuels for industry - the Climate Change Levy (CCL). A research team from the Centre for Economic Performance (CEP) at the LSE, led by Ralf Martin, has conducted an in depth evaluation of the effect of this policy on individual firms using a representative sample of the UK economy which includes detailed data on more than 10.000 enterprises.
They found that the Climate Change Levy – which on average corresponds to a £20 carbon tax per ton – has had a strong impact on power usage by companies and reduced electricity consumption for the average manufacturing firm by 10 to 20 percent. The economists also examined whether the levy had had any adverse impacts on economic performance of companies in areas such as employment or productivity. They did not find any evidence for this.
Ralf Martin – who is part of the AGF funded 'sustainable growth in europe' research team – summarises the outcome of the research as "good for the planet and not bad for the economy". He goes even further, suggesting that an increase in carbon taxes and a simultaneous reduction of taxes on wages and employment could be the ideal policy measure in the current crisis, as it would secure existing jobs without leading to more government borrowing.
Registration is required. Please send an email to: [email protected].
We look forward to your participation.
Date: 25 February 2009, 12.00-2.00 pm
Venue: Deutsches Institut für Wirtschaftsforschung (DIW)
Main Conference Room, 2nd floor, Mohrenstr. 58, 10117 Berlin
Registration is required. Please send an email to: [email protected]