4.1 Welfare Changes (continued)
The welfare measures in Tables 5 and 6 were based on three levels of total weekly expenditure. These expenditure levels were chosen for illustrative purposes. Within each household type, there is considerable variation. Table 7 reports the welfare changes at arithmetic mean weekly total expenditure levels for each household type (shown in Table 2), for the case of a $25 carbon tax. The welfare loss is about 1.3 percent for the $25 carbon tax, while the marginal welfare cost varies between approximately 15 and 18 cents for smoking households and 13 and 15 cents for non-smoking households per dollar of additional tax revenue.
| Household Type | Smokers | Non-Smokers | ||||||
|---|---|---|---|---|---|---|---|---|
| Mean Total Expenditure |
|
|
|
Mean Total Expenditure |
|
|
|
|
| 1 | 267 | 3.14 | 0.0128 | 2.86 | 274 | 3.65 | 0.0133 | 3.22 |
| 2 | 498 | 6.71 | 0.0135 | 5.67 | 540 | 7.21 | 0.0133 | 6.34 |
| 3 | 406 | 5.15 | 0.0127 | 4.32 | 437 | 5.58 | 0.0128 | 4.91 |
| 4 | 400 | 4.89 | 0.0122 | 4.23 | 403 | 5.12 | 0.0127 | 4.50 |
| 5 | 428 | 5.38 | 0.0126 | 4.58 | 438 | 5.41 | 0.0123 | 4.73 |
| 6 | 468 | 5.66 | 0.0121 | 4.83 | 475 | 5.76 | 0.0121 | 4.97 |
| 7 | 501 | 6.11 | 0.0122 | 5.02 | 539 | 6.49 | 0.0120 | 5.86 |
| 8 | 690 | 8.87 | 0.0129 | 7.66 | 766 | 9.92 | 0.0130 | 8.77 |
| 9 | 668 | 8.78 | 0.0131 | 7.43 | 763 | 9.92 | 0.0130 | 8.67 |
| 10 | 707 | 8.96 | 0.0127 | 7.83 | 896 | 11.29 | 0.0128 | 10.10 |
| 11 | 805 | 10.39 | 0.0129 | 9.04 | 844 | 10.66 | 0.0126 | 9.42 |
| 12 | 673 | 9.34 | 0.0139 | 7.95 | 822 | 10.51 | 0.0128 | 9.05 |
| 13 | 975 | 12.40 | 0.0127 | 10.69 | 992 | 12.90 | 0.0130 | 11.42 |
| 14 | 898 | 11.61 | 0.0129 | 10.03 | 1038 | 13.41 | 0.0129 | 11.83 |
| 15 | 826 | 11.50 | 0.0139 | 9.42 | 920 | 12.35 | 0.0134 | 10.52 |
| 16 | 1311 | 16.12 | 0.0123 | 14.25 | 1282 | 16.03 | 0.0125 | 13.96 |
| 17 | 1110 | 16.36 | 0.0147 | 13.83 | 1129 | 14.96 | 0.0133 | 12.62 |
| 18 | 1070 | 14.60 | 0.0136 | 12.47 | 925 | 12.90 | 0.0140 | 11.21 |


