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Interactions between trade and environmental policies in the Czech economy

  • Olga Kiuila

    ()

    (Faculty of Economic Sciences, University of Warsaw)

Pollution charges are directly applied on exported and domestic, but not imported commodities. We investigate how environmental taxation affects foreign trade in the Czech Republic. Using computable general equilibrium modeling with bottom-up approach, we consider a small-open economy with endogenous unemployment, fixed exchange rate, ten types of taxes and six air-pollutants. Emission reduction is possible through substitution with less polluting inputs, a reduction of output, or abatement. The results show that the imports should not be affected, except coal and electricity. Exports will increase in the light and the biomass industries. The overall effect on the trade balance is slightly negative.

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File URL: http://www.wne.uw.edu.pl/inf/wyd/WP/WNE_WP56.pdf
File Function: First version, 2011
Download Restriction: no

Paper provided by Faculty of Economic Sciences, University of Warsaw in its series Working Papers with number 2011-16.

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Length: 29 pages
Date of creation: 2011
Date of revision:
Handle: RePEc:war:wpaper:2011-16
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  1. Kiuila, Olga & Sleszynski, Jerzy, 2003. "Expected effects of the ecological tax reform for the Polish economy," Ecological Economics, Elsevier, vol. 46(1), pages 103-120, August.
  2. Orrell, David & McSharry, Patrick, 2009. "System economics: Overcoming the pitfalls of forecasting models via a multidisciplinary approach," International Journal of Forecasting, Elsevier, vol. 25(4), pages 734-743, October.
  3. Kamil Dybczak & David Vonka & Nico van der Windt, 2008. "The Effect of Oil Price Shocks on the Czech Economy," Working Papers 2008/5, Czech National Bank, Research Department.
  4. Milan Scasny & Vitezslav Pisa & Hector Pollit & Unnada Chewpreecha, 2009. "Analyzing Macroeconomic Effects of Environmental Taxation in the Czech Republic with the Econometric E3ME Model," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 59(5), pages 460-491, December.
  5. Christoph Böhringer & Klaus Conrad & Andreas Löschel, 2003. "Carbon Taxes and Joint Implementation. An Applied General Equilibrium Analysis for Germany and India," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 24(1), pages 49-76, January.
  6. Martin Altemeyer-Bartscher & Dirk T. G. Rübbelke & Eytan Sheshinski, 2010. "Environmental Protection and the Private Provision of International Public Goods," Economica, London School of Economics and Political Science, vol. 77(308), pages 775-784, October.
  7. David G. Blanchflower & Andrew J. Oswald, 1995. "An Introduction to the Wage Curve," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 153-167, Summer.
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