6533b7defe1ef96bd1275c86
RESEARCH PRODUCT
An Assessment of Carousel Value-Added Tax Fraud in The European Carbon Market
Filippo Alessandro CiminoMaria Berrittellasubject
Computable general equilibriumEconomic policy020209 energymedia_common.quotation_subject05 social sciences02 engineering and technologyInternational economicscomputable general equilibrium modeling emission trading reverse charge value-added tax fraud welfareValue-added taxSettore SECS-P/03 - Scienza Delle FinanzeCarbon market0502 economics and businessValue (economics)0202 electrical engineering electronic engineering information engineeringEconomicsDeadweight lossmedia_common.cataloged_instanceSettore IUS/12 - Diritto TributarioEmissions trading050207 economicsEuropean unionLawGeneral Economics Econometrics and FinanceWelfaremedia_commondescription
AbstractThe literature on the European Union Emission Trading System (EU ETS) is by now very rich. Much is known about the efficiency, the effectiveness, and the environmental and distributional impacts of the EU ETS. Less, however, is known about the carousel value-added-tax (VAT) fraud phenomena in the European carbon market. This article evaluates the welfare effects of carousel VAT fraud in the EU ETS using a computable general equilibrium (CGE) analysis. According to our findings, if VAT fraud occurs in the EU ETS, the effects on welfare for the EU Member States are negative, with welfare loss significantly higher than the VAT fraud value. This article also discusses the reverse charge mechanism that EU Member States could adopt to reduce the VAT fraud phenomena in the European carbon market.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2017-04-08 |