Environmental Pricing
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Environmental Pricing

Studies in Policy Choices and Interactions

Edited by Larry Kreiser, Mikael S. Andersen, Birgitte E. Olsen, Stefan Speck, Janet E. Milne and Hope Ashiabor

Environmental taxes can be efficient tools for successful environmental policy. Their use, however, has been limited in many countries. This thoughtful book explores the scope of environmental pricing and examines a variety of national experiences in environmental policy integration, to identify the most effective use of taxation and policy for environmental sustainability.
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Chapter 3: Subsidies to fossil energy consumption in Italy: assessment and interaction with the electricity market

Marianna Antenucci and Michele Governatori


This chapter provides an evaluation of some of the environmentally harmful subsidies in the Italian tax and energy bills system (at least 6 billion €/y in total) and assesses how a carbon tax on fuels would interact with the wholesale electricity market. Such interaction allows then to evaluate how a carbon tax will impact revenues of electricity generation from renewable sources, which currently receive in Italy subsidies for over 10 billion €/y. This allows us to argue to what extent a carbon tax would make a reduction of such green subsidies possible with no harm to profits or competitiveness of green power generators.

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