Environmental Tax Policy Review of Romania

Annex F. Results with cross-price elasticities

This annex provides the modelling results including cross-price elasticities.

Figure A F.1. Impact on CO₂ emissions across policy scenarios with cross-price elasticities

% of 2005 emissions

Note: Scenario 1 models the introduction of the EU ETS2 assuming a carbon price of EUR 48 per tonne of CO₂. Scenario 2 introduces an excise tax reform. Scenario 3 adds an air pollution tax across all energy products. All impacts are reported relative to the baseline scenario.

Source: Author’s elaboration.

Figure A F.2. Impact on PM_2.5 emissions across policy scenarios with cross-price elasticities

% of 2005 emissions

Note: Scenario 1 models the introduction of the EU ETS2 assuming a carbon price of EUR 48 per tonne of CO₂. Scenario 2 introduces an excise tax reform. Scenario 3 adds an air pollution tax across all energy products. All impacts are reported relative to the baseline scenario.

Source: Author’s elaboration.