<abstract xmlns="http://www.w3.org/1999/xhtml">

Taxation of CO2 emissions is expected to exert a strong upward effect on aggregate price development. Therefore, the envisaged return of CO2 revenues to private households should be implemented in a way that neutralises the increase of HCPI. This serves to avoid excessive secondary reactions from wage development, price setting and monetary policy, as seen in the wake of the energy crisis, and to ensure an employment-oriented macroeconomic policy with price stability.
</abstract>

Taxation of CO2 emissions is expected to exert a strong upward effect on aggregate price development. Therefore, the envisaged return of CO2 revenues to private households should be implemented in a way that neutralises the increase of HCPI. This serves to avoid excessive secondary reactions from wage development, price setting and monetary policy, as seen in the wake of the energy crisis, and to ensure an employment-oriented macroeconomic policy with price stability.

Wirtschaftsdienst

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Gesamtwirtschaftliche Preiseffekte der Rückgabe von CO-Abgaben

Taxation of CO2 emissions is expected to exert a strong upward effect on aggregate price development. Therefore, the envisaged return of CO2 revenues to...

Macroeconomic Price Effects of the Return of CO,Tax Revenues

Published Online: Mar 22, 2024

Page range: 193 - 199

DOI: https://doi.org/10.2478/wd-2024-0053

© 2024 Willi Koll, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.