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AGE assessment of interactions between climate change policy instruments and pre-existing taxes: the case of Ireland

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  • Wiepke Wissema
  • Rob Dellink

Abstract

We introduce a computable general equilibrium model for Ireland to investigate the impact of climate policy on the Irish economy, taking special notice of interactions with the existing tax structure. To this end, we extend the model with a detailed representation of the tax system using separate tax data on all transactions, both intermediate and final demand. We simulate the implementation of auctioned CO2 emissions trading and specific CO2 taxation in Ireland and compare different methods to recycle the revenues. The extended tax specification facilitates a thorough second-best analysis.

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  • Wiepke Wissema & Rob Dellink, 2010. "AGE assessment of interactions between climate change policy instruments and pre-existing taxes: the case of Ireland," International Journal of Global Environmental Issues, Inderscience Enterprises Ltd, vol. 10(1/2), pages 46-62.
    • Handle: RePEc:ids:ijgenv:v:10:y:2010:i:1/2:p:46-62
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    Cited by:

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    2. Wu, T. & Thomassin, P.J., 2018. "The Impact of Carbon Tax on Food Prices and Consumption in Canada," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 275913, International Association of Agricultural Economists.
    3. Jan Imhof, 2012. "Fuel Exemptions, Revenue Recycling, Equity and Efficiency: Evaluating Post-Kyoto Policies for Switzerland," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 148(II), pages 197-227, June.
    4. de Bruin, Kelly & Yakut, Aykut Mert, 2024. "Efficiency–equity trade-off in the Irish carbon tax: A CGE investigation of mixed revenue recycling schemes," Economic Modelling, Elsevier, vol. 134(C).
    5. de Bruin, Kelly & Monaghan, Eoin & Yakut, Aykut Mert, 2019. "The economic and distributional impacts of an increased carbon tax with different revenue recycling schemes," Research Series, Economic and Social Research Institute (ESRI), number RS95.
    6. Kelly Bruin & Aykut Mert Yakut, 2023. "The Impacts of Removing Fossil Fuel Subsidies and Increasing Carbon Taxation in Ireland," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 85(3), pages 741-782, August.

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