Distributional impacts of carbon taxation in Mexico

The main aim of this paper is to analyze the different impacts carbon taxation inMexican households at income levels. First, we estimate a household demandsystem for non-durable goods with special emphasis on energy-related goods. Then, weuse results simulate introduction tax. We look potential toraise revenue implementing redistributive policies in order toaddress issues inequality and poverty. Moreover, evaluate effects carbontaxes demand emissions reduction.