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Under What Conditions Does a Carbon Tax on Fossil Fuels Stimulate Biofuels?

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dc.contributor.authorTimilsina, Govinda R.
dc.contributor.authorCsordas, Stefan
dc.contributor.authorMevel, Simon
dc.date.accessioned2012-03-19T18:02:31Z
dc.date.available2012-03-19T18:02:31Z
dc.date.issued2011-06-01
dc.description.abstractA carbon tax is an efficient economic instrument to reduce emissions of carbon dioxide released from fossil fuel burning. Its impacts on production of renewable energy depend on how it is designed -- particularly in the context of the penetration of biofuels into the energy supply mix for road transportation. Using a multi-sector, multi-country computable general equilibrium model, this study shows first that a carbon tax with the entire tax revenue recycled to households through a lump-sum transfer does not stimulate biofuel production significantly, even at relatively high tax rates. This reflects the high cost of carbon dioxide abatement through biofuels substitution, relative to other energy substitution alternatives; in addition, the carbon tax will have negative economy-wide consequences that reduce total demand for all fuels. A combined carbon tax and biofuel subsidy policy, where part of the carbon tax revenue is used to finance a biofuel subsidy, would significantly stimulate market penetration of biofuels. Although the carbon tax and biofuel subsidy policy would cause higher loss in global economic output compared with the carbon tax with lump sum revenue redistribution, the incremental output loss is relatively small.en
dc.identifierhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110606142136
dc.identifier.doi10.1596/1813-9450-5678
dc.identifier.urihttps://hdl.handle.net/10986/3441
dc.languageEnglish
dc.relation.ispartofseriesPaper is funded by the Knowledge for Change Program (KCP),Policy Research working paper ; no. WPS 5678
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectANTHROPOGENIC EMISSIONS
dc.subjectATMOSPHERE
dc.subjectBIOMASS
dc.subjectBUSINESS AS USUAL SCENARIO
dc.subjectCAPITAL INVESTMENTS
dc.subjectCARBON
dc.subjectCARBON ABATEMENT
dc.subjectCARBON DEBT
dc.subjectCARBON DIOXIDE
dc.subjectCARBON EMISSIONS
dc.subjectCARBON POLICIES
dc.subjectCARBON SOURCES
dc.subjectCARBON TAX
dc.subjectCARBON TAXES
dc.subjectCARBON-INTENSIVE MANUFACTURING
dc.subjectCHEMICALS
dc.subjectCLEAN ENERGY
dc.subjectCLEAN ENERGY TECHNOLOGIES
dc.subjectCLEANER PRODUCTION
dc.subjectCLIMATE
dc.subjectCLIMATE CHANGE
dc.subjectCLIMATE CHANGE MITIGATION
dc.subjectCLIMATE CHANGE MITIGATION POLICIES
dc.subjectCLIMATE POLICY
dc.subjectCLIMATE PROTECTION
dc.subjectCLIMATIC CHANGE
dc.subjectCO
dc.subjectCO2
dc.subjectCOAL
dc.subjectCOMBUSTION
dc.subjectCOMPUTABLE GENERAL EQUILIBRIUM MODEL
dc.subjectCOST OF CARBON
dc.subjectCRUDE OIL
dc.subjectCRUDE OIL PRICE
dc.subjectDEMAND FOR ENERGY
dc.subjectDIESEL
dc.subjectDISPOSABLE INCOME
dc.subjectDOMESTIC SUPPLY
dc.subjectDRIVERS
dc.subjectDRIVING
dc.subjectECOLOGICAL ECONOMICS
dc.subjectECOLOGICAL ZONES
dc.subjectEFFICIENCY IMPROVEMENTS
dc.subjectELASTICITIES
dc.subjectELASTICITY
dc.subjectELASTICITY OF SUBSTITUTION
dc.subjectELECTRICITY
dc.subjectELECTRICITY GENERATION
dc.subjectELECTRICITY SUPPLY
dc.subjectEMISSION
dc.subjectEMISSION POLICIES
dc.subjectEMISSION REDUCTION
dc.subjectEMISSION REDUCTION POTENTIAL
dc.subjectEMISSION TAX
dc.subjectEMISSIONS
dc.subjectEMISSIONS FROM FUEL
dc.subjectEMISSIONS FROM LAND-USE CHANGE
dc.subjectEND-USE
dc.subjectENERGY CONSUMPTION
dc.subjectENERGY ECONOMICS
dc.subjectENERGY EFFICIENCY
dc.subjectENERGY INTENSITY
dc.subjectENERGY INTENSIVE
dc.subjectENERGY MIX
dc.subjectENERGY SERVICE
dc.subjectENERGY SOURCES
dc.subjectENERGY TAX
dc.subjectENERGY TRANSFORMATION
dc.subjectENVIRONMENTAL BENEFITS
dc.subjectENVIRONMENTAL DAMAGE
dc.subjectENVIRONMENTAL IMPACTS
dc.subjectENVIRONMENTAL POLICY
dc.subjectENVIRONMENTAL PROTECTION
dc.subjectENVIRONMENTAL RESEARCH
dc.subjectETHANOL
dc.subjectFOREST
dc.subjectFOREST LAND
dc.subjectFORESTRY
dc.subjectFOSSIL ENERGY
dc.subjectFOSSIL FUEL
dc.subjectFOSSIL FUEL BURNING
dc.subjectFOSSIL FUELS
dc.subjectFUEL CONSUMPTION
dc.subjectFUEL PRICE
dc.subjectFUEL SUPPLY
dc.subjectFUEL TAX
dc.subjectGAS PRODUCTION
dc.subjectGASOLINE
dc.subjectGHG
dc.subjectGLOBAL CARBON TAX
dc.subjectGLOBAL ENERGY MIX
dc.subjectGLOBAL ENERGY SUPPLY
dc.subjectGREENHOUSE
dc.subjectGREENHOUSE GAS
dc.subjectGREENHOUSE GAS EMISSION
dc.subjectGREENHOUSE GAS EMISSION MITIGATION
dc.subjectGREENHOUSE GASES
dc.subjectHOUSEHOLD EXPENDITURES
dc.subjectHOUSEHOLD SECTOR
dc.subjectIMPACTS OF FUEL PRICE
dc.subjectINCOME TAXES
dc.subjectINTERNATIONAL ENERGY AGENCY
dc.subjectIPCC
dc.subjectLAND USE
dc.subjectLAND USE CHANGE
dc.subjectLIQUID FUELS
dc.subjectMITIGATION POTENTIAL
dc.subjectNATURAL GAS
dc.subjectNEGATIVE IMPACTS
dc.subjectNUCLEAR POWER
dc.subjectOILS
dc.subjectPETROLEUM PRICE
dc.subjectPETROLEUM PRODUCTS
dc.subjectPOWER GENERATION
dc.subjectPRICE VOLATILITY
dc.subjectREFINED OIL
dc.subjectRENEWABLE ENERGY
dc.subjectRENEWABLE ENERGY SOURCES
dc.subjectROAD
dc.subjectROAD TRANSPORT
dc.subjectROAD TRANSPORT SECTOR
dc.subjectTAX POLICY
dc.subjectTAX RATE
dc.subjectTAX RATES
dc.subjectTAX REVENUE
dc.subjectTAX REVENUES
dc.subjectTAXATION
dc.subjectTOTAL ENERGY DEMAND
dc.subjectTRANSPORT
dc.subjectTRANSPORT SECTOR
dc.subjectTRANSPORT SERVICES
dc.subjectTRANSPORTATION
dc.subjectTRANSPORTATION FUEL
dc.subjectTRUE
dc.subjectWELFARE FUNCTION
dc.titleUnder What Conditions Does a Carbon Tax on Fossil Fuels Stimulate Biofuels?en
dspace.entity.typePublication
okr.crossref.titleUnder What Conditions Does a Carbon Tax on Fossil Fuels Stimulate Biofuels?
okr.date.disclosure2011-06-01
okr.date.doiregistration2025-04-10T11:26:49.064656Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110606142136
okr.globalpracticeTransport and ICT
okr.guid369341468149700560
okr.identifier.doi10.1596/1813-9450-5678
okr.identifier.externaldocumentum000158349_20110606142136
okr.identifier.internaldocumentum14300405
okr.identifier.reportWPS5678
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2011/06/06/000158349_20110606142136/Rendered/PDF/WPS5678.pdfen
okr.region.administrativeWorld
okr.region.administrativeWorld
okr.sectorEnergy efficiency in power sector
okr.sectorEnergy and mining
okr.topicTransport
okr.unitDevelopment Research Group (DECRG)
okr.unitDECRG: Agriculture & Rural Devt. (DECAR)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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