Energy and Income Distribution in Sweden
This chapter develops an empirical framework for analyzing the consequences of energy taxation or price increases on income distribution. The total energy requirements of household consumption of all goods and services are evaluated using information on consumption patterns from family expenditure surveys and input / output energy intensities. Households are grouped with regard to factors that can be thought to influence energy utilization: disposable income, residential location, dwelling type, and family composition. The methodology and the results presented have served as an empirical basis for the evaluation of the distributional aspects of energy policy measures in a number of Swedish government investigations dealing with the energy question.
In the evaluation of the impact of energy policy measures or energy price changes on the household sector two questions are of prime interest. The first has to do with the effect on energy demand, that is, the degree to which a given tax or price increase affects the utilization of energy. The second concerns the distributional aspects or the impact of