Abstract for: CA_RE: Assessing Carbon Reduction through the introduction of a carbon tax. The case of Italy

In this model, we assess the impact of the introduction of a carbon tax on CO2 emissions in Italy. Tax revenue is redistributed between investments in photovoltaic installations and in energy efficiency interventions in the building sector. Results show high potential of environmental taxation as a complementary tool of market based instruments (i.e. tradable permits) in achieving environmental quality.