2024-03-29T07:36:41
110643
Fri Mar 29 07:36:43 EDT 2024
Data and Code for "Energy Cost Pass-Through in U.S. Manufacturing: Estimates and Implications for Carbon Taxes"
Sharat Ganapati
Joseph Shapiro
Reed Walker
110643
https://doi.org/10.3886/E110643V1
We study how changes in energy input costs for U.S. manufacturers affect the relative
welfare of manufacturing producers and consumers (i.e., incidence). We also develop
a methodology to estimate the incidence of input taxes which accounts for incomplete
pass-through, imperfect competition, and substitution amongst inputs. For the several
industries we study, 70 percent of energy price-driven changes in input costs get passed
through to consumers in the short- to medium-run. The share of the welfare cost that
consumers bear is 25-75 percent smaller (and the share producers bear is larger) than
models featuring complete pass-through and perfect competition would suggest.
H22 Incidence
H23 Externalities • Redistributive Effects • Environmental Taxes and Subsidies
United States of America
1972 – 1997
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