The research questions that we answered in this work were as follows:What distribution effects can result from environmental regulation in the form of excise taxes for households of different income levels and with high heterogeneity defined by various demographic criteria? How important are the distributional effects in quantitative terms?The basis to answer these questions was an Almost Ideal Demand system (AID-System) which was structurally estimated using micro data from the current budget surveys (“Laufende Wirtschaftsrechnunge, LWR”) of the German statistical offices. While being a very important data source for economic analysis, LWR is still relatively little exploited for academic research. The results were both, price and income elasticities for different goods. Estimates were differentiated across income groups and according to demographic criteria. Moreover, the parameters estimated from the AID-System were used to carry out microsimulation exercises to measure changes in welfare and inequality due to increases in carbon taxes via energy prices.
01.03.2015 - 01.02.2016