Energy Tax Reform and Poverty Alleviation in Mexico

• Autores: José María Labeaga Azcona, Xavier Labandeira Villot, Xiral López Otero
• Localización: Documentos de traballo do Departamento de Economía Aplicada, Nº. 1, 2018
• Idioma: inglés
• Enlaces
  • Texto completo (pdf)
• Resumen

  • Equity and efficiency are crucial issues behind any tax reform, but they are particularly relevant in countries with high inequality and large shares of poverty. This paper provides a comprehensive socio-economic empirical assessment of Mexico’s recently implemented tax reforms in the energy domain, and of a hypothetical (partial) removal of existing electricity subsidies. Using the rich National Household Income and Expenditure Survey within the context of a demand system adjustment of non-durable goods, this article provides the publicrevenue, environmental and distributional impacts from the simulation of different combinations of energy taxation, subsidyremoval and distributive offsets.