Distributional effects of Finland's climate policy package - Calculations with the new income distribution module of the VATTAGE model
AbstractIn 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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Bibliographic InfoPaper provided by Government Institute for Economic Research Finland (VATT) in its series Working Papers with number 11.
Date of creation: 13 Nov 2009
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Find related papers by JEL classification:
- C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
- C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-11-21 (All new papers)
- NEP-CMP-2009-11-21 (Computational Economics)
- NEP-ENE-2009-11-21 (Energy Economics)
- NEP-ENV-2009-11-21 (Environmental Economics)
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