Modelling the health related benefits of environmental policies - a CGE analysis for the eu countries with gem-e3



19

The CO2 tax is implemented at country level in the target period 2008-2012 with
the CO
2 reduction target for each country given by the last two columns in Table 3,
depending on the model version. Budget neutrality is obtained by using the revenues
generated by the CO
2 tax to reduce the social security contributions. We consider only
one policy instrument as our objective is to evaluate the impact of modelling the
feedback effects, rather than to compare policy instruments.

3.2. The Scenario Results

Table 4 presents the domestic CO2 taxes that are required to reach the Kyoto
target. As can be expected, the CO
2 tax is higher in the model with feedback for those
countries where the feedback effects imply a higher reduction target in 2010 (cf. Table
3). This reflects the fact that the marginal CO
2 abatement costs increase with the
abatement levels. At the EU level the marginal CO
2 abatement cost and therefore the
CO
2 tax is higher in the model with feedback. Table 4 shows that the social security
contributions can on average be reduced by more in the model with feedback. This is
made possible partly by the higher CO
2 tax revenues, but also by other factors which
will be discussed in more detail below. The lower social security contributions play a
role in the increase in the EU average real wage rate which is evident in Table 4.



More intriguing information

1. The Role of Land Retirement Programs for Management of Water Resources
2. Feeling Good about Giving: The Benefits (and Costs) of Self-Interested Charitable Behavior
3. Fiscal Sustainability Across Government Tiers
4. The name is absent
5. Permanent and Transitory Policy Shocks in an Empirical Macro Model with Asymmetric Information
6. Conflict and Uncertainty: A Dynamic Approach
7. The name is absent
8. Personal Experience: A Most Vicious and Limited Circle!? On the Role of Entrepreneurial Experience for Firm Survival
9. XML PUBLISHING SOLUTIONS FOR A COMPANY
10. Long-Term Capital Movements
11. Input-Output Analysis, Linear Programming and Modified Multipliers
12. The name is absent
13. The name is absent
14. Visual Perception of Humanoid Movement
15. Work Rich, Time Poor? Time-Use of Women and Men in Ireland
16. Computational Experiments with the Fuzzy Love and Romance
17. The name is absent
18. Real Exchange Rate Misalignment: Prelude to Crisis?
19. The name is absent
20. Notes on an Endogenous Growth Model with two Capital Stocks II: The Stochastic Case