Energy Cost Pass-Through in US Manufacturing: Estimates and Implications for Carbon Taxes
Energy Cost Pass-Through in US Manufacturing: Estimates and Implications for Carbon Taxes
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DOI:
10.1257/app.20180474
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发表时间:
2020-04-01
影响因子:
6.2
通讯作者:
Walker, Reed
中科院分区:
文献类型:
--
作者:
Ganapati, Sharat;Shapiro, Joseph S.;Walker, Reed
We study how changes in energy input costs for US 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 that accounts for incomplete pass-through, imperfect competition, and substitution among 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.