IDEAS home Printed from https://ideas.repec.org/p/ekd/009007/9648.html
   My bibliography  Save this paper

Input vs. output taxation - a DSGE approach to modelling resource decoupling

Author

Listed:
  • Marek Antosiewicz
  • Piotr Lewandowski
  • Jan Witajewski-Baltvilks

Abstract

Explore two forms of taxation (input and output tax) and their ability to induce resource efficiency. Details in paper. Large scale Multisector DSGE model containing endogenous technological change mechanism calibrated for EU and Kalman filter simulations. Details in paper. Input taxation more efficient in inducing resource efficiency at lower macroeconomic cost. Details in paper.

Suggested Citation

  • Marek Antosiewicz & Piotr Lewandowski & Jan Witajewski-Baltvilks, 2016. "Input vs. output taxation - a DSGE approach to modelling resource decoupling," EcoMod2016 9648, EcoMod.
  • Handle: RePEc:ekd:009007:9648
    as

    Download full text from publisher

    File URL: http://ecomod.net/system/files/Antosiewicz_InputVsOutput.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Bovenberg, A Lans & Goulder, Lawrence H, 1996. "Optimal Environmental Taxation in the Presence of Other Taxes: General-Equilibrium Analyses," American Economic Review, American Economic Association, vol. 86(4), pages 985-1000, September.
    2. Heathcote, Jonathan & Perri, Fabrizio, 2002. "Financial autarky and international business cycles," Journal of Monetary Economics, Elsevier, vol. 49(3), pages 601-627, April.
    3. Reyer Gerlagh & Bob van der Zwaan, 2006. "Options and Instruments for a Deep Cut in CO2 Emissions: Carbon Dioxide Capture or Renewables, Taxes or Subsidies?," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 25-48.
    4. Fischer, Carolyn & Newell, Richard G., 2008. "Environmental and technology policies for climate mitigation," Journal of Environmental Economics and Management, Elsevier, vol. 55(2), pages 142-162, March.
    5. Bovenberg, A.L. & Goulder, L.H., 1996. "Optimal environmental taxation in the presence of other taxes : General equilibrium analyses," Other publications TiSEM 5d4b7517-c5c8-4ef6-ab76-3, Tilburg University, School of Economics and Management.
    6. Azusa OKAGAWA & Kanemi BAN, 2008. "Estimation of substitution elasticities for CGE models," Discussion Papers in Economics and Business 08-16, Osaka University, Graduate School of Economics.
    7. Kuper, Gerard H. & van Soest, Daan P., 2003. "Path-dependency and input substitution: implications for energy policy modelling," Energy Economics, Elsevier, vol. 25(4), pages 397-407, July.
    8. Mortensen, Dale T, 1999. "Equilibrium Unemployment Dynamics," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(4), pages 889-914, November.
    9. Koschel, Henrike, 2000. "Substitution elasticities between capital, labour, material, electricity and fossil fuels in German producing and service sectors," ZEW Discussion Papers 00-31, ZEW - Leibniz Centre for European Economic Research.
    10. Popp, David C., 2001. "The effect of new technology on energy consumption," Resource and Energy Economics, Elsevier, vol. 23(3), pages 215-239, July.
    11. Christopher A. Pissarides, 2000. "Equilibrium Unemployment Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262161877.
    12. Kemfert, Claudia, 1998. "Estimated substitution elasticities of a nested CES production function approach for Germany," Energy Economics, Elsevier, vol. 20(3), pages 249-264, June.
    13. Joshua Linn, 2008. "Energy Prices and the Adoption of Energy-Saving Technology," Economic Journal, Royal Economic Society, vol. 118(533), pages 1986-2012, November.
    14. Skelton, Alexandra C.H. & Allwood, Julian M., 2013. "The incentives for supply chain collaboration to improve material efficiency in the use of steel: An analysis using input output techniques," Ecological Economics, Elsevier, vol. 89(C), pages 33-42.
    15. Goulder, Lawrence H., 2013. "Climate change policy's interactions with the tax system," Energy Economics, Elsevier, vol. 40(S1), pages 3-11.
    16. Sue Wing, Ian, 2008. "Explaining the declining energy intensity of the U.S. economy," Resource and Energy Economics, Elsevier, vol. 30(1), pages 21-49, January.
    17. Takeda, Shiro, 2007. "The double dividend from carbon regulations in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 21(3), pages 336-364, September.
    18. Oecd, 2002. "Access for Business," OECD Digital Economy Papers 67, OECD Publishing.
    19. Frank Smets & Raf Wouters, 2003. "An Estimated Dynamic Stochastic General Equilibrium Model of the Euro Area," Journal of the European Economic Association, MIT Press, vol. 1(5), pages 1123-1175, September.
    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. Antosiewicz, Marek & Fuentes, J. Rodrigo & Lewandowski, Piotr & Witajewski-Baltvilks, Jan, 2022. "Distributional effects of emission pricing in a carbon-intensive economy: The case of Poland," Energy Policy, Elsevier, vol. 160(C).
    2. Michał Antoszewski, 2020. "Macroeconomic, Sectoral and Fiscal Consequences of Decreasing Energy Intensity in the Polish Economy," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 3, pages 53-81.
    3. Hinterlang, Natascha & Martin, Anika & Röhe, Oke & Stähler, Nikolai & Strobel, Johannes, 2021. "Using energy and emissions taxation to finance labor tax reductions in a multi-sector economy: An assessment with EMuSe," Discussion Papers 50/2021, Deutsche Bundesbank.
    4. Doreen Fedrigo-Fazio & Jean-Pierre Schweitzer & Patrick Ten Brink & Leonardo Mazza & Alison Ratliff & Emma Watkins, 2016. "Evidence of Absolute Decoupling from Real World Policy Mixes in Europe," Sustainability, MDPI, vol. 8(6), pages 1-22, May.
    5. Colin M. Rose & Julia A. Stegemann, 2018. "From Waste Management to Component Management in the Construction Industry," Sustainability, MDPI, vol. 10(1), pages 1-21, January.
    6. Gonzalo F. de-Córdoba & Benedetto Molinari & José L. Torres, 2021. "Public Debt Frontier: A Python Toolkit for Analyzing Public Debt Sustainability," Sustainability, MDPI, vol. 13(23), pages 1-25, November.
    7. Chan, Ying Tung, 2020. "Optimal emissions tax rates under habit formation and social comparisons," Energy Policy, Elsevier, vol. 146(C).
    8. Ying Tung Chan, 2019. "Optimal Environmental Tax Rate in an Open Economy with Labor Migration—An E-DSGE Model Approach," Sustainability, MDPI, vol. 11(19), pages 1-38, September.
    9. Yevgeniya Arushanyan & Anna Björklund & Ola Eriksson & Göran Finnveden & Maria Ljunggren Söderman & Jan-Olov Sundqvist & Åsa Stenmarck, 2017. "Environmental Assessment of Possible Future Waste Management Scenarios," Energies, MDPI, vol. 10(2), pages 1-27, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marek Antosiewicz & Piotr Lewandowski & Jan Witajewski-Baltvilks, 2016. "Input vs. Output Taxation—A DSGE Approach to Modelling Resource Decoupling," Sustainability, MDPI, Open Access Journal, vol. 8(4), pages 1-17, April.
    2. Popp, David & Newell, Richard G. & Jaffe, Adam B., 2010. "Energy, the Environment, and Technological Change," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 873-937, Elsevier.
    3. Palatnik, Ruslana Rachel & Shechter, Mordechai, 2008. "Can Climate Change Mitigation Policy Benefit the Israeli Economy? A Computable General Equilibrium Analysis," Climate Change Modelling and Policy Working Papers 6361, Fondazione Eni Enrico Mattei (FEEM).
    4. Ross McKitrick, 2017. "Emission Taxes and Damage Thresholds in the Presence of Pre-existing Regulations," Working Papers 1705, University of Guelph, Department of Economics and Finance.
    5. Henriksson, Eva & Söderholm, Patrik & Wårell, Linda, 2012. "Industrial electricity demand and energy efficiency policy: The role of price changes and private R&D in the Swedish pulp and paper industry," Energy Policy, Elsevier, vol. 47(C), pages 437-446.
    6. Roger Fouquet, 2012. "Economics of Energy and Climate Change: Origins, Developments and Growth," Working Papers 2012-08, BC3.
    7. Pang, Yu, 2019. "Taxing pollution and profits: A bargaining approach," Energy Economics, Elsevier, vol. 78(C), pages 278-288.
    8. Perrels, Adriaan, 2000. "Greenhouse Gas Policy Questions and Socio-economic Research Implications for Finland in a National and International Context," Discussion Papers 222, VATT Institute for Economic Research.
    9. Carraro, Carlo & De Cian, Enrica & Nicita, Lea & Massetti, Emanuele & Verdolini, Elena, 2010. "Environmental Policy and Technical Change: A Survey," International Review of Environmental and Resource Economics, now publishers, vol. 4(2), pages 163-219, October.
    10. Gillingham, Kenneth & Newell, Richard G. & Pizer, William A., 2008. "Modeling endogenous technological change for climate policy analysis," Energy Economics, Elsevier, vol. 30(6), pages 2734-2753, November.
    11. Antosiewicz, Marek & Fuentes, J. Rodrigo & Lewandowski, Piotr & Witajewski-Baltvilks, Jan, 2022. "Distributional effects of emission pricing in a carbon-intensive economy: The case of Poland," Energy Policy, Elsevier, vol. 160(C).
    12. Annicchiarico, Barbara & Correani, Luca & Di Dio, Fabio, 2018. "Environmental policy and endogenous market structure," Resource and Energy Economics, Elsevier, vol. 52(C), pages 186-215.
    13. Amedeo Argentiero, Tarek Atalla, Simona Bigerna, Silvia Micheli, and Paolo Polinori, 2017. "Comparing Renewable Energy Policies in EU-15, U.S. and China: A Bayesian DSGE Model," The Energy Journal, International Association for Energy Economics, vol. 0(KAPSARC S).
    14. Rozenberg, Julie & Vogt-Schilb, Adrien & Hallegatte, Stephane, 2020. "Instrument choice and stranded assets in the transition to clean capital," Journal of Environmental Economics and Management, Elsevier, vol. 100(C).
    15. Maurizio Ciaschini, Rosita Pretaroli, Francesca Severini, Claudio Socci, 2010. "Environmental tax reform and double dividend evidence," Working Papers 25-2010, Macerata University, Department of Studies on Economic Development (DiSSE), revised May 2010.
    16. Eduardo L. Giménez & Miguel Rodríguez, 2020. "Optimality of Relaxing Revenue-neutral Restrictions in Green Tax Reforms," Hacienda Pública Española / Review of Public Economics, IEF, vol. 233(2), pages 3-24, June.
    17. Rong Wang & Juan Moreno-Cruz & Ken Caldeira, 2017. "Will the use of a carbon tax for revenue generation produce an incentive to continue carbon emissions?," Post-Print hal-03226925, HAL.
    18. Gamtessa, Samuel & Olani, Adugna Berhanu, 2018. "Energy price, energy efficiency, and capital productivity: Empirical investigations and policy implications," Energy Economics, Elsevier, vol. 72(C), pages 650-666.
    19. Kruse-Andersen, Peter Kjær & Sørensen, Peter Birch, 2022. "Optimal energy taxes and subsidies under a cost-effective unilateral climate policy: Addressing carbon leakage," Energy Economics, Elsevier, vol. 109(C).
    20. David Grover, 2012. "Knowledge versus technique in SO2-saving technological change: A comparative test using quantile regression with implications for greenhouse gas compliance," GRI Working Papers 99, Grantham Research Institute on Climate Change and the Environment.

    More about this item

    Keywords

    EU27; General equilibrium modeling (CGE); Tax policy;
    All these keywords.

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

    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:ekd:009007:9648. 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: https://edirc.repec.org/data/ecomoea.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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Theresa Leary (email available below). General contact details of provider: https://edirc.repec.org/data/ecomoea.html .

    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.