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Economic Repercussions of Environmental Regulations in Poland: the Case of the Second Sulfur Protocol

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  • Olga Kiuila

    (Warsaw University)

Abstract

This study uses computable general equilibrium (CGE) modeling to show and analyze the economic consequences of some specific environmental policies. The main question is: Will the fulfillment by Poland of commitments resulting from the participation in the Second Sulfur Protocol (SSP) have negative economic consequences for the country as whole? In order to fulfill the commitments required by the SSP, Poland needs to achieve about a 50% reduction of SO2 emission in relation to 1992 no later than 2010. Using a CGE model for Poland, likely impacts of taxes on coal and other fuel inputs and SO2 emission taxes on the Polish economy are simulated. The model has been adjusted to reflect certain behavioral and institutional characteristics of the sectors that play a key role in implementing the Protocol. Simulation results show possible changes in price and production of different sectors. They indicate that there exist scenarios allowing the Polish economy to meet the SSP requirements without suppressing the total output excessively. Certain individual industries, however, may suffer, which calls for careful remedial actions by the government.

Suggested Citation

  • Olga Kiuila, 1999. "Economic Repercussions of Environmental Regulations in Poland: the Case of the Second Sulfur Protocol," Computing in Economics and Finance 1999 732, Society for Computational Economics.
  • Handle: RePEc:sce:scecf9:732
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