An applied dynamic general equilibrium model of environmental tax reforms and pension policy

Wendner, Ronald

doi:10.1016/s0161-8938(00)00025-9

Cited by 47 publications

(21 citation statements)

References 15 publications

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“…Vennemo [6] discussed the nature of environmental feedbacks on the Norwegian economy by using the general equilibrium model DREAM (Dynamic Resource/Environment Applied Model). Wendner [7] analyzed environmental tax reforms, which use the revenues from CO 2 taxation to partially finance the pension system within the framework of a dynamic computable general equilibrium model (DCGE). By using this DCGE model, Muto et al [8] simulated the automobile and the related carbon tax needed to accomplish the objective in the transport sector in Japan.…”

Section: Introductionmentioning

confidence: 99%

Scenarios Analysis of the Energies’ Consumption and Carbon Emissions in China Based on a Dynamic CGE Model

et al. 2014

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This paper investigates the development trends and variation characteristics of China's economy, energy consumption and carbon emissions from 2007 to 2030, and the impacts on China's economic growth, energy consumption, and carbon emissions under the carbon tax policy scenarios, based on the dynamic computable general equilibrium (CGE) model. The results show that during the simulation period, China's economy will keep a relatively high growth rate, but the growth rate will slow down under the benchmark scenario. The energy consumption intensity and the carbon emissions intensity per unit of Gross Domestic Product (GDP) will continually decrease. The energy consumption structure and industrial structure will gradually optimize. With the economic growth, the total energy consumption will constantly increase, and the carbon dioxide emissions are still large, and the situation of energy-saving and emission-reduction is still serious. The carbon tax is very important for energy-saving and emission-reduction and energy consumption structure optimization, and the effect of the carbon tax on GDP is small. If the carbon tax could be levied and the enterprise income tax could be reduced at the same time, the dual goals of reducing energy consumption and carbon emissions and increasing the GDP growth can be achieved. Improving the technical progress level of clean power while implementing a carbon tax policy is very meaningful to optimize energy consumption structure and reduce the carbon emissions, but it has some offsetting effect to reduce energy consumption. OPEN ACCESSSustainability 2014, 6 488

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Section: Introductionmentioning

confidence: 99%

Scenarios Analysis of the Energies’ Consumption and Carbon Emissions in China Based on a Dynamic CGE Model

et al. 2014

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“…As an example, when the revenue of the tax is recycled through a reduction in the rate of social contributions, the fulfillment of this equity criterion represents a "third dividend" contributing to the improvement of nonenvironmental welfare (Assouline and Fodha, 1998). In another vein, an original empirical contribution to the employment double dividend debate is provided by Wendner (1998), who analyses its feasibility in the perspective of an aging population and of wealth redistribution between younger and older generations. The author constructs an applied dynamic general equilibrium model for the Austrian economy with a nested structure of overlapping generations and explicit modeling of the functioning of the pension system.…”

Section: Further Issues In Double Dividend Analysismentioning

confidence: 99%

The double dividend issue: modeling strategies and empirical findings

Bosello

Carraro

Galeotti³

2001

Envir. Dev. Econ.

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract. This paper reviews recent developments in the study of the so-called "double dividend", i.e. the possibility of improving the environment and, at the same time, reducing the distortions of the tax system through revenue-neutral green taxes. Recent modeling advances are considered at both the theoretical and the empirical levels. In particular, we note that the most significant theoretical advances have been made in the direction of allowing for imperfectly competitive markets, especially the market for labor. At the same time, we argue that empirical work, particularly on the "employment double dividend", is still relatively scant and that much more needs to be done both in the direction of more realistic empirical models and of an extended sensitivity analysis of the main findings. Terms of use: Documents inOctober 1998. Keywords: Double Dividend, Environmental Fiscal Reform, Environmental Modeling. JEL Classification: H0, H2, H3.Paper presented at the Symposium on "Environment, Energy, Economy. A Sustainable Development", Toward the National Conference on Energy and Environment, Rome 12-13 October, 1998. 1 THE DOUBLE DIVIDEND ISSUE: MODELING STRATEGIES AND EMPIRICAL FINDINGS Non-Technical SummaryThis paper reviews recent developments in the study of the so-called "double dividend", i.e. the possibility of improving the environment and, at the same time, reducing the distortions of the tax system through revenue-neutral green taxes.Roughly speaking, the double dividend literature can be divided in two strands. A first group of contributions focuses upon the distortions of the tax system, before and after an environmental fiscal reform. The emphasis of this notion of double dividend, referred to as weak or strong double dividend, is typically on individual welfare, with less attention being paid to the specific modes in which the tax revenues are recycled and their consequences for the economy. A second crop of papers looks at the impact that recycled fiscal revenues can have on relevant macroeconomic variables, especially employment, output, or growth. The papers in this area are motivated by the persistently high levels of unemployment which have now afflicted Europe for a decade. This specific form of double dividend, where both emissions and unemployment are reduced by the fiscal reform, is usually named "employment double dividend". This paper aims at providing an updated review of the advances in the study of the double dividend issue. In ...

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“…Some recent studies that have used CGE methods to model the effects of an ETR. Bye [17][18][19][20][21][22][23] all found that a carbon tax on the United States economy could achieve a double dividend by recycling revenues in capital taxes. A literature review on CGE modeling and the double dividend can be found in Freire-González [24] which draws two main conclusions: first, an environmental tax improves environmental conditions, which is the main objective of imposing such a tax; and second, the post-reform improvement of economic conditions remains uncertain.…”

Section: Introductionmentioning

confidence: 99%

Environmental Fiscal Reform and the Double Dividend: Evidence from a Dynamic General Equilibrium Model

Freire‐González

2018

Sustainability

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An environmental fiscal reform (EFR) represents a transition of a taxation system toward one based in environmental taxation, rather than on taxation of capital, labor, or consumption. It differs from an environmental tax reform (ETR) in that an EFR also includes a reform of subsidies which counteract environmental policy. This research details different ways in which an EFR is not only possible but also a good option that provides economic and environmental benefits. We have developed a detailed dynamic CGE model examining 101 industries and commodities in Spain, with an energy and an environmental extension comprising 31 pollutant emissions, in order to simulate the economic and environmental effects of an EFR. The reform focuses on 39 industries related to the energy, water, transport and waste sectors. We simulate an increase in taxes and a reduction on subsidies for these industries and at the same time we use new revenues to reduce labor, capital and consumption taxes. All revenue recycling options provide both economic and environmental benefits, suggesting that the "double dividend" hypothesis can be achieved. After three to four years after implementing an EFR, GDP is higher than the base case, hydrocarbons consumption declines and all analyzed pollutants show a reduction.

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An applied dynamic general equilibrium model of environmental tax reforms and pension policy

Cited by 47 publications

References 15 publications

Scenarios Analysis of the Energies’ Consumption and Carbon Emissions in China Based on a Dynamic CGE Model

Scenarios Analysis of the Energies’ Consumption and Carbon Emissions in China Based on a Dynamic CGE Model

The double dividend issue: modeling strategies and empirical findings

Environmental Fiscal Reform and the Double Dividend: Evidence from a Dynamic General Equilibrium Model

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