Studieområde: Ramvillkor, infrastruktur och kompetensförsörjning
The costs and benefits of supporting data centers: A general equilibrium analysis
Leverans: oktober 2023
The aim of this study is to analyze benefits and costs of supporting large-scale data centers ( LDC ) in a general equilibrium setting.
Large-scale data centers (LDC) enjoy government support in many countries. These centers are not labor-intensive, but energy-intensive, thus tending to push up electricity prices and possibly crowding out labor-intensive firms.
A tax reform designed as a reduction of the energy tax paid by LDCs provides a way of supporting such centers. Net benefits of such a policy depends crucially, in general equilibrium, on the value of a tax elasticity. It can be interpreted as a ‘sufficient statistic’ regarding the welfare impact of such a tax-reform (in the country where the tax exemption is made). The research question is whether it exist positive net benefits from the Swedish tax reform supporting LDCs?
The costs and benefits of supporting data centers: A general equilibrium analysis
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