The reform of the European Energy Tax Directive: exploring potential economic impacts in the EU27

Abstract

The aim of this study is to analyze the effect that the Energy Tax Directive reform proposed in 2011 would have, if implemented, on the level of prices in the different sectors of the 27 countries of the European Union. We apply a multiregional and multisectoral model of trade flows that takes into account all the intersectoral and intercountry interdependences in the production processes. Using the World Input-Output Database we perform two different simulations. The first one considers the tax changes proposed by the reform; the second one shows the impact the reform would have entailed if it were applied also to sectors belonging to the European Trade System (...)