The effect of the Swedish carbon dioxide tax : an econometric analysis

This thesis investigates the existing tax on Carbon Dioxide in Sweden and tries reveal if it has any effect on the emission levels of carbon dioxide. The thesis theoretical ideas rests on the thought that taxes is a way to internalize negative externalities. Global warming is the danger with carbon dioxide. To reach an answer on the effectiveness of the tax a regression analysis has been performed on the variables tax, emission levels and development of gross domestic product. In the household sector, which is the biggest source of pollution the regression result shows that taxes have effect. The attempt to investigate the aggregated level has however proven to be harder. The estimated model for the household sector showed on a statistically significant level that increases in the tax would lead to a reduction in emissions. A one percent increase in the tax would lead to a reduction of emissions with 0,128 percentValiderat; 20101217 (root