Distributional effects of Finland's climate policy package - Calculations with the new income distribution module of the VATTAGE model

Juha Honkatukia, Kimmo Marttila and Jouko Kinnunen

No 11, Working Papers from VATT Institute for Economic Research

Abstract: In this report we present a new version of the VATTAGE AGE (Applied General Equilibrium) model, which enables distributional analysis of policy changes. We also report estimation results of LES consumption function for eight socioeconomic groups. We use climate policy as an example for the distributional effects. Our model results show that the planned climate policy measures are not very regressive in their nature. In contrast, they seem to distribute the costs of climate policy rather evenly. An exception to this rule is farmer households, the real consumption of which seems to reduce less than that of other groups.

Keywords: Rredistributive effects, environmental taxes, computable general equilibrium models, econometric model estimation, Energy, Energia, Environment, Ympäristö, Income distribution, Tulonjako, Policy analysis and modelling, Päätöksenteon tuki ja mallintaminen, C510 - Model Construction and Estimation, C680 - Computable General Equilibrium Models, H230 - Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies, (search for similar items in EconPapers)
Date: 2009
New Economics Papers: this item is included in nep-cmp, nep-ene and nep-env
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Citations: View citations in EconPapers (4)

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