CO2 pricing and the reform of taxes and levies on electricity

With the repositioning of CO2 pricing in the German and European policy mix, the challenge arises to provide additional incentives to reduce emissions, but also to use the additional revenue from the various CO2 pricing instruments in a sensible and targeted manner. This requires a robust estimation of the revenue and an evaluation of the effects of redistribution strategies. In this project, we develop a reform concept and assess its robustness and flexibility for rasing and using its revenue. The focus is on assessing distributional effects between different sectors and intrasectoral distributional issues, especially in the area of private households.