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Interactions between trade and environmental policies in the Czech economy

Author

Listed:
  • Olga Kiuila

    (Faculty of Economic Sciences, University of Warsaw)

Abstract

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.

Suggested Citation

  • Olga Kiuila, 2011. "Interactions between trade and environmental policies in the Czech economy," Working Papers 2011-16, Faculty of Economic Sciences, University of Warsaw.
    • Handle: RePEc:war:wpaper:2011-16
    as

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    File URL: http://www.wne.uw.edu.pl/inf/wyd/WP/WNE_WP56.pdf
    File Function: First version, 2011
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    References listed on IDEAS

    as
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    Cited by:

    1. Kiuila, O. & Rutherford, T.F., 2013. "The cost of reducing CO2 emissions: Integrating abatement technologies into economic modeling," Ecological Economics, Elsevier, vol. 87(C), pages 62-71.

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    More about this item

    Keywords

    calibration; competitiveness; computable general equilibrium modeling; pollutions; taxes;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • 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

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