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Welfare implications of a carbon tax in a long-distance passenger market

Title: Welfare implications of a carbon tax in a long-distance passenger market
Authors: Cherbonnier, Frédéric; Ivaldi, Marc; Muller-Vibes, Catherine; Van der Straeten, Karine
Contributors: Toulouse School of Economics (TSE-R); Université Toulouse Capitole (UT Capitole); Communauté d'universités et établissements de Toulouse (Comue de Toulouse)-Communauté d'universités et établissements de Toulouse (Comue de Toulouse)-École des hautes études en sciences sociales (EHESS)-Centre National de la Recherche Scientifique (CNRS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE); Sciences Po Toulouse - Institut d'études politiques de Toulouse (IEP Toulouse); École des hautes études en sciences sociales (EHESS); Unknown; Institute for Advanced Study in Toulouse (IAST); Centre National de la Recherche Scientifique (CNRS)
Source: https://hal.science/hal-05183825 ; 2025.
Publisher Information: CCSD
Publication Year: 2025
Collection: Institut National de la Recherche Agronomique: ProdINRA
Subject Terms: Modal competition; environmental externalities; carbon tax; high-speed rail; [SHS.ECO]Humanities and Social Sciences/Economics and Finance
Description: National audience ; This study estimates the impact of a carbon tax on welfare, considering modal shifts to less carbon-intensive transport, as well as its effects on environmental and fiscal externalities. We calibrate a modal competition model using logit demand functions for a specific long-distance connection in France and simulate the introduction of a Pigouvian tax. Our key findings are: First, a €190/tCO2 carbon tax is nearly welfare-neutral but significantly detrimental to consumer surplus; Second, rail price regulation has the side effect of reducing greenhouse gas emissions by subsidizing the cleanest transport mode; Third, the widespread adoption of electric vehicles enhances overall welfare without significantly harming consumer surplus.
Document Type: report
Language: English
Availability: https://hal.science/hal-05183825; https://hal.science/hal-05183825v1/document; https://hal.science/hal-05183825v1/file/wp_tse_1656.pdf
Rights: https://about.hal.science/hal-authorisation-v1/ ; info:eu-repo/semantics/OpenAccess
Accession Number: edsbas.A4F85F1E
Database: BASE