Environmental Taxes, Inefficient Subsidies and Income Distribution in Chile: A CGE framework
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.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lawrence H. Goulder, 1993. "Energy Taxes: Traditional Efficiency Effects and Environmental Implications," NBER Working Papers 4582, National Bureau of Economic Research, Inc.
- Kneese, Allen V., 1998. "No time for complacency," Environment and Development Economics, Cambridge University Press, vol. 3(04), pages 491-537, October.
- Lawrence H. Goulder, 1994. "Environmental Taxation and the "Double Dividend:" A Reader's Guide," NBER Working Papers 4896, National Bureau of Economic Research, Inc.
- Don Fullerton & Sarah West, 1999.
"Can Taxes on Cars and on Gasoline Mimic an Unavailable Tax on Emissions?,"
NBER Working Papers
7059, National Bureau of Economic Research, Inc.
- 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.
- 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).
- 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.
- Grossman, Gene & Krueger, Alan B, 1992.
"Environmental Impacts of a North American Free Trade Agreement,"
CEPR Discussion Papers
644, C.E.P.R. Discussion Papers.
- Gene M. Grossman & Alan B. Krueger, 1991. "Environmental Impacts of a North American Free Trade Agreement," NBER Working Papers 3914, National Bureau of Economic Research, Inc.
- 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.
- 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).
- 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.
- Bosello, Francesco & Carraro, Carlo & Galeotti, Marzio, 1999. "The Double Dividend Issue: Modelling Strategies and Empirical Findings," CEPR Discussion Papers 2117, C.E.P.R. Discussion Papers.
- 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.
- 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.
- 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.
- Parry, Ian & Oates, Wallace, 1998. "Policy Analysis in a Second-Best World," Discussion Papers dp-98-48, Resources For the Future.
- 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.
- 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.
- 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.
- 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 853-73, August.
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: ()
If references are entirely missing, you can add them using this form.