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About: Energy tax     Goto   Sponge   NotDistinct   Permalink

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An energy tax is a tax that increases the price of energy (Fisher et al., 1996, p. 416). Arguments in favour of energy taxes have included the pursuit of macroeconomic objectives, e.g., fiscal deficit reduction in the 1990s, as well as environmental benefits, i.e., reduced pollution (Nellor, 1994, p. 1). A weakness of energy taxes is that they impose a burden (or cost) in the form of reduced economic output and employment (p. 19).