Energy Cost Pass-Through in U.S. Manufacturing: Estimates and Implications for Carbon Taxes /
Ganapati, Sharat.
Energy Cost Pass-Through in U.S. Manufacturing: Estimates and Implications for Carbon Taxes / Sharat Ganapati, Joseph S. Shapiro, Reed Walker. - Cambridge, Mass. National Bureau of Economic Research 2016. - 1 online resource: illustrations (black and white); - NBER working paper series no. w22281 . - Working Paper Series (National Bureau of Economic Research) no. w22281. .
May 2016.
We study how changes in energy input costs for U.S. manufacturers affect the relative welfare of manufacturing producers and consumers (i.e., incidence). We also develop a methodology to estimate the incidence of input taxes which accounts for incomplete pass-through, imperfect competition, and substitution amongst inputs. For the several industries we study, 70 percent of energy price-driven changes in input costs get passed through to consumers in the short- to medium-run. The share of the welfare cost that consumers bear is 25-75 percent smaller (and the share producers bear is larger) than models featuring complete pass-through and perfect competition would suggest.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.
Energy Cost Pass-Through in U.S. Manufacturing: Estimates and Implications for Carbon Taxes / Sharat Ganapati, Joseph S. Shapiro, Reed Walker. - Cambridge, Mass. National Bureau of Economic Research 2016. - 1 online resource: illustrations (black and white); - NBER working paper series no. w22281 . - Working Paper Series (National Bureau of Economic Research) no. w22281. .
May 2016.
We study how changes in energy input costs for U.S. manufacturers affect the relative welfare of manufacturing producers and consumers (i.e., incidence). We also develop a methodology to estimate the incidence of input taxes which accounts for incomplete pass-through, imperfect competition, and substitution amongst inputs. For the several industries we study, 70 percent of energy price-driven changes in input costs get passed through to consumers in the short- to medium-run. The share of the welfare cost that consumers bear is 25-75 percent smaller (and the share producers bear is larger) than models featuring complete pass-through and perfect competition would suggest.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.