The main objective of this study (Lot 1) is to support DG Energy in the revision of the Energy Taxation Directive. For this, it provides quantitative and qualitative assessment of the effects of fiscal, non-fiscal charges and levies, as well as their interaction with possible carbon border adjustments in order to assess the best portfolio of actions necessary for the achievement of the long-term energy and climate objectives. This allows to improve the understanding and knowledge of the impacts of combine/final price signals have on energy consumption and energy-related investments, including the investigation whether some options would lead to “path dependency” or technology/fuel lock-ins.

The studies enhances the understanding of the impacts of:
• Final prices of energy carriers;
• Different energy taxes (EU wide and at MS level);
• Other charges and levies (including tradable and non-tradable permits) and levies;
• Combined energy price signals and the influence of a revision of the Energy Taxation Directive;
• The Carbon Border Adjustment Mechanism and its interaction with energy taxation.

The projet is led by Trinomics with participation of E3-Modelling, Fraunhofer-ISI, DIW Berlin and Vivid Economics.