Energy taxes with exemptions in Greece: an input-output analysis

Abstract

This paper examines the economic implications of sectoral exemptions from energy
taxation in Greece. This issue is being analysed in the context of an input-output
model of the Greek economy calibrated to 1994 data. The insights that emerge from
this study suggest that the level of prices and other macroeconomic variables rises,
while competitiveness seems to improve. Furthermore, the exemption of high energy
intensive industries from energy taxation causes a smaller shock in the Greek economy,
relatively to the case of the low energy intensive branches exemption.