R. Brannlund et B. Kristrom, Too hot to handle? Benefits and costs of stimulating the use of biofuels in the Swedish heating sector, RES ENER EC, 23(4), 2001, pp. 343-358
This paper evaluates the impact of changes in current Swedish energy taxati
on by analyzing a panel of approximately 150 district heating plants in Swe
den. We estimate plant-specific production functions and derive the economi
c repercussions of changing the energy tax system. We also estimate the res
ulting changes of emissions of Sulfur, NOx, particulates and CO2. Our resul
ts raise the issue of whether or not the Swedish tax system needs to be com
plemented with additional environmental taxes, covering, say, emissions of
particulates. Because the geographical variation of damages is likely to be
substantial, an overall re-assessment of current regulatory schemes seems
preferable. (C) 2001 Elsevier Science B.V. All rights reserved.