Impacts of ecological taxation on household purchasing power: simulation of several redistribution scenarios. Focus N. 030-2019, March 2019

In this paper, the author aims at proposing a view of the situation of re-distributive effects of ecological taxation in France through a simulation of the impacts of different tax scenarios, the revenues of which would be redistributed among households. After a presentation of TAXIPP model which is used for the simulations, the author examines re-distributive effects of increases of some specific taxations (climate energy contribution, fuel taxation) among different revenue groups and between them. Then, he studies several scenarios of tax revenue redistribution for these taxes. These simulations suggest that, while redistributing the tax revenue among households, it is possible to design a progressive measure which could benefit to a large majority of modest income households