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Distributional effects of Finland's climate policy package - Calculations with the new income distribution module of the VATTAGE model

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  • Jouko Kinnunen
  • Kimmo Marttila
  • Juha Honkatukia
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    Abstract

    In this report we present a new version of the VATTAGE AGE (Applied General Equilibrium) model, which enables distributional analysis of policy changes. We also report estimation results of LES consumption function for eight socioeconomic groups. We use climate policy as an example for the distributional effects. Our model results show that the planned climate policy measures are not very regressive in their nature. In contrast, they seem to distribute the costs of climate policy rather evenly. An exception to this rule is farmer households, the real consumption of which seems to reduce less than that of other groups.

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    File URL: http://www.vatt.fi/file/vatt_publication_pdf/wp11.pdf
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    Bibliographic Info

    Paper provided by Government Institute for Economic Research Finland (VATT) in its series Working Papers with number 11.

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    Date of creation: 13 Nov 2009
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    Handle: RePEc:fer:wpaper:11

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    Related research

    Keywords: Rredistributive effects; environmental taxes; computable general equilibrium models; econometric model estimation;

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