IDEAS home Printed from https://ideas.repec.org/p/edj/ceauch/98.html
   My bibliography  Save this paper

Environmental Taxes, Inefficient Subsidies and Income Distribution in Chile: A CGE framework

Author

Listed:
  • Raúl O'Ryan

    ()

  • Sebastian Miller
  • Carlos J. de Miguel

Abstract

Successful economic growth followed by Chile, based on open market and export strategy, is characterised by a high dependence on natural resources, and by polluting production and consumption patterns. There is an increasing concern about the need to make potentially significant trade-offs between economic growth and environmental improvements. Additionally, policy-makers have been reluctant to impose standards that could have regressive consequences, making the poor poorer. Using the ECOGEM-Chile model we study the direct and indirect effects of imposing green taxes in Chile for PM10, SO2 and NOx as well as taxes on gasoline. We analyse the effects over macroeconomic variables as well as sectoral, distributive and environmental variables. We also analyse eliminating distotionary subsidies that produce environmental and welfare losses. Evidence of welfare gains, besides environmental gains, and trade-off among sectors is presented that can justify tax/subsidies reforms in developing countries, replacing inefficient taxes/subsidies for more efficient ones.

Suggested Citation

  • Raúl O'Ryan & Sebastian Miller & Carlos J. de Miguel, 2001. "Environmental Taxes, Inefficient Subsidies and Income Distribution in Chile: A CGE framework," Documentos de Trabajo 98, Centro de Economía Aplicada, Universidad de Chile.
  • Handle: RePEc:edj:ceauch:98
    as

    Download full text from publisher

    File URL: http://www.dii.uchile.cl/~cea/sitedev/cea/www/download.php?file=documentos_trabajo/ASOCFILE120030404113211.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Lawrence H. Goulder, 1994. "Environmental Taxation and the "Double Dividend:" A Reader's Guide," NBER Working Papers 4896, National Bureau of Economic Research, Inc.
    2. Hazilla, Michael & Kopp, Raymond J, 1990. "Social Cost of Environmental Quality Regulations: A General Equilibrium Analysis," Journal of Political Economy, University of Chicago Press, vol. 98(4), pages 853-873, August.
    3. Sébastien Dessus & David Roland-Holst & Dominique van der Mensbrugghe, 1994. "Input-Based Pollution Estimates for Environmental Assessment in Developing Countries," OECD Development Centre Working Papers 101, OECD Publishing.
    4. Lawrence H. Goulder, 1993. "Energy Taxes: Traditional Efficiency Effects and Environmental Implications," NBER Working Papers 4582, National Bureau of Economic Research, Inc.
    5. Fullerton, Don & West, Sarah E., 2002. "Can Taxes on Cars and on Gasoline Mimic an Unavailable Tax on Emissions?," Journal of Environmental Economics and Management, Elsevier, vol. 43(1), pages 135-157, January.
    6. Ballard, Charles L. & Medema, Steven G., 1993. "The marginal efficiency effects of taxes and subsidies in the presence of externalities : A computational general equilibrium approach," Journal of Public Economics, Elsevier, vol. 52(2), pages 199-216, September.
    7. Arthur M. Wiese & Adam Rose & Gerald Schluter, 1995. "Motor-Fuel Taxes and Household Welfare: An Applied General Equilibrium Analysis," Land Economics, University of Wisconsin Press, vol. 71(2), pages 229-242.
    8. Grossman, G.M & Krueger, A.B., 1991. "Environmental Impacts of a North American Free Trade Agreement," Papers 158, Princeton, Woodrow Wilson School - Public and International Affairs.
    9. Parry, Ian & Oates, Wallace, 1998. "Policy Analysis in a Second-Best World," Discussion Papers dp-98-48, Resources For the Future.
    10. John Beghin & Sébastien Dessus & David Roland-Holst & Dominique van der Mensbrugghe, 1996. "General Equilibrium Modelling of Trade and the Environment," OECD Development Centre Working Papers 116, OECD Publishing.
    11. Robinson, Sherman & Gehlhar, Clemen G., 1995. "Land, water, and agriculture in Egypt: the economywide impact of policy reform," TMD discussion papers 1, International Food Policy Research Institute (IFPRI).
    12. Bosello, Francesco & Carraro, Carlo & Galeotti, Marzio, 2001. "The double dividend issue: modeling strategies and empirical findings," Environment and Development Economics, Cambridge University Press, vol. 6(01), pages 9-45, February.
    13. Mukherjee, Natasha, 1996. "Water and land in South Africa: economywide impacts of reform a case study for the Olifants river," TMD discussion papers 12, International Food Policy Research Institute (IFPRI).
    14. Nestor, Deborah Vaughn & Pasurka, Carl Jr., 1995. "Alternative specifications for environmental control costs in a general equilibrium framework," Economics Letters, Elsevier, vol. 48(3-4), pages 273-280, June.
    15. Jorgenson, Dale W. & Wilcoxen, Peter J., 1990. "Intertemporal general equilibrium modeling of U.S. environmental regulation," Journal of Policy Modeling, Elsevier, vol. 12(4), pages 715-744.
    16. Kneese, Allen V., 1998. "No time for complacency," Environment and Development Economics, Cambridge University Press, vol. 3(04), pages 491-537, October.
    17. Mäler, Karl-Göran & Munasinghe, Mohan, 1996. "Macroeconomic policies, second-best theory and the environment," Environment and Development Economics, Cambridge University Press, vol. 1(02), pages 149-163, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pereira, Mauricio & De Miguel, Carlos J. & Ulloa, Andrés & O'Ryan, Raúl, 2009. "Síndrome holandés, regalías mineras y políticas de gobierno para un país dependiente de recursos naturales: el cobre en Chile," Medio Ambiente y Desarrollo 140, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    2. Eugenio Figueroa B. & Enrique Calfucura T., 2002. "Depreciación del Capital Natural, Ingreso y Crecimiento Sostenible: Lecciones de la Experiencia Chilena," Working Papers Central Bank of Chile 138, Central Bank of Chile.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:edj:ceauch:98. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/ceuclcl.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.