The Effect of Environmental Stringency on End-Use Energy Prices: Evidence From High-Income Country Panels

Abstract

We estimate environmental stringency’s influence on end-use energy prices for high-income countries by examining the impact of four measures of environmental stringency on residential and industrial electricity prices and road gasoline and diesel prices. While we uncover some such influence on electricity prices, the most substantial and robust evidence for environmental stringency impacting end-use prices is for the effect of total environmental tax/GDP and energy tax/GDP on diesel and gasoline prices.