IDEAS home Printed from https://ideas.repec.org/p/sce/scecf4/39.html
   My bibliography  Save this paper

Modelling the health related benefits of environmental policies and their feedback effects, a CGE analysis for the EU countries with GEM-E3

Author

Listed:
  • Denise Van Regemorter
  • Inge Mayeres

Abstract

A number of recent studies on taxation in the presence of externalities in a second-best framework consider the implications of taking into account the feedback effects of environmental quality. This paper explores by means of GEM-E3, a computable general equilibrium model for the EU countries, the importance of the feedback effects of the health related benefits from an environmental policy. The modelling framework implemented in GEM-E3 allows for three channels through which the feedback can occur: a decrease in medical expenditure, an increase in the consumers" available time and an increase of labour productivity in the production sectors. The results show that the explicit modelling of the health related effect of air pollution on consumers and producers allows for a better evaluation of the impact of environmental policies on private consumption and employment. However, in terms of global effect, the impacts of the feedback are small, compared to the standard GEM-E3 model where the health related benefits are evaluated ex-post

Suggested Citation

  • Denise Van Regemorter & Inge Mayeres, 2004. "Modelling the health related benefits of environmental policies and their feedback effects, a CGE analysis for the EU countries with GEM-E3," Computing in Economics and Finance 2004 39, Society for Computational Economics.
    • Handle: RePEc:sce:scecf4:39
    as

    Download full text from publisher

    File URL: http://repec.org/sce2004/up.4085.1076418670.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Gerking, Shelby & Stanley, Linda R, 1986. "An Economic Analysis of Air Pollution and Health: The Case of St. Louis," The Review of Economics and Statistics, MIT Press, vol. 68(1), pages 115-121, February.
    2. Roberton C. Williams III, 2002. "Environmental Tax Interactions When Pollution Affects Health or Productivity," Chapters, in: Lawrence H. Goulder (ed.), Environmental Policy Making in Economies with Prior Tax Distortions, chapter 13, pages 200-209, Edward Elgar Publishing.
    3. Jesse Schwartz & Robert Repetto, 2000. "Nonseparable Utility and the Double Dividend Debate: Reconsidering the Tax-Interaction Effect," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 15(2), pages 149-157, February.
    4. Inge Mayeres & Stef Proost, 1997. "Optimal Tax and Public Investment Rules for Congestion Type of Externalities," Scandinavian Journal of Economics, Wiley Blackwell, vol. 99(2), pages 261-279, June.
    5. Jennifer Chung–I Li, 2002. "Including the Feedback of Local Health Improvement in Assessing Costs and Benefits of GHG Reduction," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 14(3), pages 282-304, November.
    6. repec:bla:scandj:v:99:y:1997:i:2:p:261-79 is not listed on IDEAS
    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. Marten, Alex L. & Newbold, Stephen C., 2017. "Economy-Wide Effects of Mortality Risk Reductions from Environmental Policies," National Center for Environmental Economics-NCEE Working Papers 280938, United States Environmental Protection Agency (EPA).
    2. Omolo, Miriam W.O., 2014. "Construction of Social Accounting Matrix for Kenya 2009," Conference papers 332512, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. Ferris, Ann & Garbaccio, Richard & Marten, Alex & Wolverton, Ann, 2017. "The Impacts of Environmental Regulation on the U.S. Economy," National Center for Environmental Economics-NCEE Working Papers 280936, United States Environmental Protection Agency (EPA).
    4. repec:hal:wpaper:hal-00930936 is not listed on IDEAS
    5. Gjorgiev, Blazhe & Garrison, Jared B. & Han, Xuejiao & Landis, Florian & van Nieuwkoop, Renger & Raycheva, Elena & Schwarz, Marius & Yan, Xuqian & Demiray, Turhan & Hug, Gabriela & Sansavini, Giovanni, 2022. "Nexus-e: A platform of interfaced high-resolution models for energy-economic assessments of future electricity systems," Applied Energy, Elsevier, vol. 307(C).
    6. Mathieu-Bolh, Nathalie & Pautrel, Xavier, 2016. "Reassessing the effects of environmental taxation when pollution affects health over the life-cycle," Economic Modelling, Elsevier, vol. 52(PB), pages 310-321.
    7. Magnani, Natalia & Vaona, Andrea, 2013. "Regional spillover effects of renewable energy generation in Italy," Energy Policy, Elsevier, vol. 56(C), pages 663-671.
    8. Tourdyeva, Natalia & Bogatova, Irina & Vartanov, Sergey & Denisova, Irina & Chubarova, Tatiana & Shakleina, Marina & Polterovich, Victor, 2021. "Расчетная Модель Общего Равновесия Для Оценки Экономического Эффекта Ранней Диагностики Болезни Паркинсона [Computable general equilibrium model for assessing the economic effect of early diagnosis," MPRA Paper 105182, University Library of Munich, Germany.
    9. Michael Miess & Stefan Schmelzer & Milan Å Ä asný & VÄ›dunka KopeÄ ná, 2022. "Abatement Technologies and their Social Costs in a Hybrid General Equilibrium Framework," The Energy Journal, , vol. 43(2), pages 153-180, March.
    10. V. Kerry Smith & Min Qiang Zhao, 2016. "Evaluating Economy-Wide Benefit Cost Analyses," NBER Working Papers 22769, National Bureau of Economic Research, Inc.
    11. Nam, Kyung-Min & Selin, Noelle E. & Reilly, John M. & Paltsev, Sergey, 2010. "Measuring welfare loss caused by air pollution in Europe: A CGE analysis," Energy Policy, Elsevier, vol. 38(9), pages 5059-5071, September.
    12. Fangjin Xu & Qingxu Huang & Huanbi Yue & Xingyun Feng & Haoran Xu & Chunyang He & Peng Yin & Brett A. Bryan, 2023. "The challenge of population aging for mitigating deaths from PM2.5 air pollution in China," Nature Communications, Nature, vol. 14(1), pages 1-13, December.
    13. Nathalie Mathieu-Bolh & Xavier Pautrel, 2014. "Environmental taxation, health and the life-cycle," Working Papers hal-00990256, HAL.
    14. Jared C.Carbone & Yuzhou Shen, 2019. "Assessing the Benefits of Air-Quality Improvements in General Equilibrium: A Review," Working Papers 2019-05, Colorado School of Mines, Division of Economics and Business.

    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. Inge Mayeres & Denise Van Regemorter, 2003. "Modelling the health related benefits of environmental policies - a CGE analysis for the eu countries with gem-e3," Energy, Transport and Environment Working Papers Series ete0310, KU Leuven, Department of Economics - Research Group Energy, Transport and Environment.
    2. Ian W. H. Parry & Antonio Bento, 2001. "Revenue Recycling and the Welfare Effects of Road Pricing," Scandinavian Journal of Economics, Wiley Blackwell, vol. 103(4), pages 645-671, December.
    3. Llop Llop, Maria, 2016. "A second-best analysis of alternative instruments for the preservation of natural resources?," Working Papers 2072/261533, Universitat Rovira i Virgili, Department of Economics.
    4. Henri L. F. De Groot & Gert‐Jan Linders & Piet Rietveld & Uma Subramanian, 2004. "The Institutional Determinants of Bilateral Trade Patterns," Kyklos, Wiley Blackwell, vol. 57(1), pages 103-123, February.
    5. Çağatay Koç, 2007. "Environmental Quality, Medical Care Demand and Environmental Tax Interactions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(2), pages 431-443, June.
    6. A. Bovenberg, 1999. "Green Tax Reforms and the Double Dividend: an Updated Reader's Guide," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 6(3), pages 421-443, August.
    7. repec:hal:wpaper:hal-00930936 is not listed on IDEAS
    8. Jean-Christophe Caffet, 2005. "Health effects and optimal environmental taxes in welfare state countries," Cahiers de la Maison des Sciences Economiques v05049, Université Panthéon-Sorbonne (Paris 1).
    9. William Jaeger, 2011. "The Welfare Effects of Environmental Taxation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 49(1), pages 101-119, May.
    10. Nathalie Mathieu-Bolh & Xavier Pautrel, 2014. "Environmental taxation, health and the life-cycle," Working Papers hal-00990256, HAL.
    11. Mathieu-Bolh, Nathalie & Pautrel, Xavier, 2016. "Reassessing the effects of environmental taxation when pollution affects health over the life-cycle," Economic Modelling, Elsevier, vol. 52(PB), pages 310-321.
    12. Östblom, Göran & Samakovlis, Eva, 2004. "Costs of Climate Policy when Pollution Affects Health and Labour Productivity. A general Equilibrium Analysis Applied to Sweden," Working Papers 93, National Institute of Economic Research.
    13. Marcelo Arbex & Christian Trudeau, 2015. "Heterogeneous preferences, atmospheric externalities, and environmental taxation," Working Papers 1503, University of Windsor, Department of Economics, revised Jun 2016.
    14. Marten, Alex L. & Newbold, Stephen C., 2017. "Economy-Wide Effects of Mortality Risk Reductions from Environmental Policies," National Center for Environmental Economics-NCEE Working Papers 280938, United States Environmental Protection Agency (EPA).
    15. Jean-Christophe Caffet, 2005. "Health effects and optimal environmental taxes in welfare state countries," Post-Print halshs-00194917, HAL.
    16. Cinzia Di Novi, 2007. "An Economic Evaluation of Life-Style and Air-pollution-related Damages: Results from the BRFSS," JEPS Working Papers 07-001, JEPS.
    17. MUNK, Knud J., 2011. "Optimal taxation in the presence of a congested public good and an application to transport policy," LIDAM Discussion Papers CORE 2011057, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    18. Parry Ian W. H. & West Sarah E & Laxminarayan Ramanan, 2009. "Fiscal and Externality Rationales for Alcohol Policies," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 9(1), pages 1-48, July.
    19. Jensen, Henning Tarp & Keogh-Brown, Marcus R. & Shankar, Bhavani & Aekplakorn, Wichai & Basu, Sanjay & Cuevas, Soledad & Dangour, Alan D. & Gheewala, Shabbir H. & Green, Rosemary & Joy, Edward J.M. & , 2019. "Palm oil and dietary change: Application of an integrated macroeconomic, environmental, demographic, and health modelling framework for Thailand," Food Policy, Elsevier, vol. 83(C), pages 92-103.
    20. Kuang-Feng Cheng & Chien-Shu Tsai & Chu-Chuan Hsu & Szu-Chung Lin & Ting-Chung Tsai & Jen-Yao Lee, 2019. "Emission Tax and Compensation Subsidy with Cross-Industry Pollution," Sustainability, MDPI, vol. 11(4), pages 1-23, February.
    21. Joseph E. Stiglitz, 2015. "In Praise of Frank Ramsey's Contribution to the Theory of Taxation," Economic Journal, Royal Economic Society, vol. 0(583), pages 235-268, March.

    More about this item

    Keywords

    applied general equilibrium model; non-separable externalities; CO2 tax; environment; ancillary benefits;
    All these keywords.

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • D62 - Microeconomics - - Welfare Economics - - - Externalities

    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:sce:scecf4:39. See general information about how to correct material in RePEc.

    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: Christopher F. Baum (email available below). General contact details of provider: https://edirc.repec.org/data/sceeeea.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.