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Electricity Use of Automation or How to Tax Robots?

Year: 2025

Type: article

Abstract: ABSTRACT While automation technologies replace workers in ever more tasks, robots, 3D‐printers, and AI require substantial amounts of electricity. How are automation technologies affected by the price of electricity, and how do robot taxes and electricity taxes affect their adoption? To answer these questions, we generalize a standard economic growth model to incorporate automation and electricity use. In addition, we augment the model with electricity taxes and robot taxes and show the mechanisms by which these taxes affect automation. We find that an electricity tax—that is comparatively easy to implement—can serve a similar purpose as a robot tax.

Source: Scottish Journal of Political Economy

DOI: 10.1111/sjpe.70032

Authors: Emanuel Gasteiger, Michael Kuhn, Matthias Mistlbacher, Klaus Prettner

Institutions: Iscte – Instituto Universitário de Lisboa, TU Wien, Unidade de Investigação em Desenvolvimento Empresarial, International Institute for Applied Systems Analysis, Vienna University of Economics and Business

Language: English

Topic: Economic Growth and Productivity

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Affordable and clean energy, Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $2,900