Distributional effects of carbon taxation in passenger transport with lump-sum offset: low income households, retirees and families would benefit in Germany

Christine Eisenmann,Florian Koller,Felix Steck,Lars Hedemann,Barbara Lenz

doi:10.1186/s12544-020-00442-6

Christine Eisenmann, Florian Koller + Show 3 more

Open Access

https://doi.org/10.1186/s12544-020-00442-6

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Abstract

BackgroundThe introduction of a carbon tax on passenger transport is currently being discussed in Germany. Various stakeholders favour a consumption-based, revenue-neutral carbon tax with a uniform lump-sum offset for private households and a tax rate of 40 € per ton of CO2.ObjectiveIn this study, we examine the distributional effects of carbon taxation for the German passenger transport sector under the assumption of the proposed tax model. We discuss as to what extent which socioeconomic groups would be burdened and who might even benefit from carbon taxation. To answer these questions we use a uniquely modelled data set that encompasses all forms of passenger transport (i.e. in Germany and abroad) of the German resident population over 1 year. The national household travel survey Mobility in Germany 2017 is the basis of the microscopic data set. We derive annual CO2 emissions and carbon tax burdens for various population groups using the data on passenger transport, as well as specific emission factors.ResultsResults show that low income households, retirees, single parents and family households with two or more children would benefit from the proposed carbon taxation scheme due to below-average emissions per person; in contrast, working age households without children and car owners with heavy car use would be burdened. Our results are of particular relevance to transport researchers, transport politicians and decision makers as a basis for designing, developing and introducing a carbon taxation scheme.

Highlights

Within the framework of the Climate Protection Plan 2050, the German Federal Government has set itself the goal of reducing greenhouse gas (GHG) emissions across multiple sectors by 80% to 95% by 2050, compared to 1990 [1]
4.1 Practical implications In summary, the results identified the distribution of financial benefits and burdens related to passenger transport payments across German population groups resulting from broad carbon taxation
5 Conclusions In this study, we have analysed to what extent certain socioeconomic groups of the German resident population would be burdened and who might even benefit from carbon taxation in the transportation sector

Summary

Introduction

Within the framework of the Climate Protection Plan 2050, the German Federal Government has set itself the goal of reducing greenhouse gas (GHG) emissions across multiple sectors by 80% to 95% by 2050, compared to 1990 [1]. For Germany and other European countries, many experts claimed potential carbon emission savings of 10% to 20% compared to a business-as-usual baseline if applied to production and consumption [4,5,6]. A more recent study by Andersson [7] revealed that, for the time between 1990 and 2005, the introduction of a broad carbon tax in Sweden led to an average reduction of 6.3% in transport CO2 emissions (i.e., metric tons per capita) compared to a hypothetical state without levying the tax. Broad carbon taxation is able to successfully reduce CO2 emissions in the transport sector. Various stakeholders favour a consumption-based, revenue-neutral carbon tax with a uniform lump-sum offset for private households and a tax rate of 40 € per ton of CO2

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