Adjusting carbon tax incidence changes the budgetary impact of a carbon tax

PolicyEngine / policyengine-uk

The UK's only open-source static tax-benefit microsimulation model.

https://policyengine.github.io/policyengine-uk/

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Adjusting carbon tax incidence changes the budgetary impact of a carbon tax #774

Open MaxGhenis opened 10 months ago

MaxGhenis commented 10 months ago

For example, a £100/tonne carbon tax raises:

£32.6bn with 100% consumer incidence
£31.6bn with 80% consumer incidence

See https://github.com/PolicyEngine/policyengine-uk/blob/master/policyengine_uk/variables/contrib/ubi_center/carbon_tax.py

Based on shareholding, defined here

Might it be because corporate_wealth doesn't sum to parameters(period).household.wealth.national_balance_sheet.household.financial_net_worth @nikhilwoodruff?