Accounting for behavioral effects of increases in the carbon dioxide (CO2) tax in revenue estimation in Sweden

In this paper we describe how behavioral responses of carbon dioxide (CO2) tax increases are accounted for in tax revenue estimation in Sweden. The rationale for developing a method for this is a mix between that a CO2 tax is a primary climate policy tool aiming to reduce CO2 emissions and that the CO2 tax generates sizable tax revenues. (C) 2011 Elsevier Ltd. All rights reserved.