Illustrated comparison inspired by the place and case. Conceptual scenes, not a photographic before and after.
How the change works
- 01 / Public decision
The price of carbon and the use of the revenue
- 02 / Physical change
Consumption and investments change
- 03 / Possible outcome
Emissions lower than the counterfactual studied
A stable economic signal can reduce fuel demand and encourage lower emission investments.
Research and local documents ↓What the evidence tells us
Andersson estimates transport emissions by almost 11% lower than a synthetic control after carbon tax and VAT on fuels, with the largest share attributed to the carbon tax.
Conditions and limits
This is a counterfactual estimate for Sweden. Cost distribution, exemptions, and availability of alternatives change the outcome.
Other possible benefits
Possibility to finance alternatives and compensations.
Research and local documents
- Evidence for this findingAndersson · AEJ: Economic Policy, 2019 ↗
Andersson estimates transport emissions by almost 11% lower than a synthetic control after carbon tax and VAT on fuels, with the largest share attributed to the carbon tax.
- Local project or policy documentGovernment Offices of Sweden · Sweden's carbon tax ↗
Structure and history of the tax, to be distinguished from the causal estimate of the study.
- Scientific basis of the mechanismIPCC AR6 WGIII · Chapter 6: Energy Systems, 2022 ↗
Scientific synthesis on sources, networks and decarbonization of the energy system. It does not attribute personal CO₂ savings to the individual project.
