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Environmental Taxation and Environmental Sensitivity of Consumers

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  • Lionel Ragot

Abstract

This paper describes a dynamic applied general equilibrium model, with perfect foresight, designed for clarifying the questions concerning taxation and the environment. The first section gives an overview of the model, focusing on the way of introducing explicitly the environmental dimension in the agents' behaviour. In the second section, we conduct a global sensitivity analysis for reasonable perturbations of the parameters and we verify the Blanchard-Kahn conditions. The third section describes the long term and dynamic impact that changes in VAT rates exhibit on the various macroeconomic and environmental variables.

Suggested Citation

  • Lionel Ragot, 2000. "Environmental Taxation and Environmental Sensitivity of Consumers," Annals of Economics and Statistics, GENES, issue 57, pages 49-81.
  • Handle: RePEc:adr:anecst:y:2000:i:57:p:49-81
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    File URL: http://www.jstor.org/stable/20076214
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