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Konrad, Kai A. (2016): Light for Europe. An Electricity Tax for the European Union Budget. Working Papers for the Brussels Symposium on 14 January 2016,

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Abstract

This report takes the First Assessment Report of the High Level Group on Own Resources (HILGOR) as the starting point for an economic analysis of a possible tax on electricity use within the EU. It first characterizes implementation options and offers some estimates on its economic effects and proper-ties. It considers the likely performance of a tax on electricity along the list of desirable characteristics mentioned in the HILGOR report by comparing it with the financial transaction tax. We suggest that the electricity tax performs well along characteristics such as equity/fairness, efficiency, sufficiency/stability, transparency, and democratic accountability. We are not arguing for the introduction of this tax. The analysis merely suggests that this tax would be superior compared to some of its alternatives.

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