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Julius Andersson

Assistant Professor of Economics

Stockholm Institute of Transition Economics

I am an Assistant Professor of Economics at Stockholm Institute of Transition Economics (SITE), a research and policy center at the Stockholm School of Economics. I hold a PhD in Environmental Economics from the London School of Economics (LSE) where I am currently an associate researcher at the Department of Geography and Environment. I am also an affiliated researcher at the Mistra Center for Sustainable Markets (Misum). I conduct research in environmental and public economics, studying the effects of climate change mitigation policies in practice. My research interests are in the fields of environmental economics, public economics, and political economy.

Interests

  • Environmental Economics
  • Public Economics
  • Political Economy

Education

  • PhD Environmental Economics, 2019

    London School of Economics

  • MSc Economics, 2014

    University College London

  • MSc Environmental Economics and Climate Change, 2013

    London School of Economics

  • BSc Economics, 2012

    Lund University

Publications

Andersson, Julius. J. 2019. Carbon Taxes and CO2 Emissions: Sweden as a Case Study. American Economic Journal: Economic Policy, 11(4): 1-30. (link)

Winner of the 2022 AEJ:Economic Policy Best Paper Award. (link)

The article was featured in AEA’s Research Highlight series on November 15, 2019: “An efficient way to reduce emissions”. (link)

Click for Abstract
This quasi-experimental study is the first to find a significant causal effect of carbon taxes on emissions, empirically analyzing the implementation of a carbon tax and a value-added tax on transport fuel in Sweden. After implementation, carbon dioxide emissions from transport declined almost 11 percent, with the largest share due to the carbon tax alone, relative to a synthetic control unit constructed from a comparable group of OECD countries. Furthermore, the carbon tax elasticity of demand for gasoline is three times larger than the price elasticity. Policy evaluations of carbon taxes, using price elasticities to simulate emission reductions, may thus significantly underestimate their true effect.

Working Papers

Andersson, Julius J. The Distributional Effects of a Carbon Tax on Gasoline: The Role of Income Inequality (link)

Click for Abstract
We present a simple model that shows how the two parameters of income inequality and the income elasticity of demand determine changes in the distributional effect of a consumption tax; with rising inequality increasing the regressivity of a consumption tax on necessities. We test the model's predictions by analysing the Swedish carbon tax on transport fuel. We find that the tax is increasingly regressive over time, which is highly correlated with a rise in income inequality, and that the tax incidence moves from regressive to progressive when switching from annual income to the more evenly distributed measure of lifetime income.

Andersson, Julius J. The "Meatigation" of Climate Change: Environmental and Distributional Effects of a Greenhouse Gas Tax on Animal Food Products

Click for Abstract
Livestock products are responsible for just under 15 percent of global anthropogenic greenhouse gas emissions and are thereby a major contributor to climate change. Furthermore, estimated emission reductions from improved productivity and livestock management will be cancelled out by growth in livestock numbers since global demand for animal food products is estimated to almost double by 2050. Consequently, a more efficient mitigation approach is to reduce emissions through efforts to lower consumption. This study analyses the climate change mitigation potential, welfare, and distributional effects of a greenhouse gas consumption tax on animal food products in Sweden. The results show that a tax set at the level of 1180 SEK ($130) per ton of carbon dioxide equivalents will reduce annual emissions from food consumption by 6-10 percent depending on the number of animal food products that are taxed. Additionally, the distributional effect will be proportional when measured against lifetime income but regressive when measured against annual income, and with diverse impacts on changes in diets dependent on disposable income. These findings indicate that the tax will be environmentally efficient but how it is implemented is crucial for its acceptance among the general public.

Teaching

Stockholm School of Economics, 2021-

  • 5327 Environmental Economics (graduate, course director)
  • 1403 The Future of Europe (graduate)

London School of Economics, 2015-2017

  • GY121 Sustainable Development

Awards: LSE Class Teacher Award, 2016