Události

Prof. Hakki Yazici

University of Bristol, United Kingdom

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Meeting number: 2742 493 2705
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Authors: Stanley Barrell-Kane and Hakki Yazici

Abstract: This paper studies the distributional consequences of carbon taxation over the life cycle. Using an environmentally-extended input-output table linked with the US Consumer Expenditure Survey, we show that the carbon intensity of expenditure declines with income but rises with age, largely due to differences in energy expenditure shares. We develop a heterogeneous-agent overlapping-generations model with non-homothetic preferences and age-dependent energy needs that matches these patterns. We evaluate a carbon tax path consistent with the U.S. net-zero target under the Paris Agreement. We find that, although higher energy prices disproportionately affect poorer and older households in the short run, lifetime welfare costs are broadly similar across income groups and display a U-shape over age, with middle-aged cohorts most affected. Crucially, these distributional outcomes depend on the timing of carbon taxes: front-loaded paths are more regressive and hurt older households more, while back-loaded paths shift the burden toward middle-aged cohorts and richer households.

Full Text: Carbon tax incidence over the life cycle