Can transition economies implement a carbon tax and hope for a double dividend? The case of Estonia

Olga Kiuila and Anil Markandya

Applied Economics Letters, 2009, vol. 16, issue 7, 705-709

Abstract: This article presents a simulation of the impact of the carbon tax reform on the Estonian economy using a computable general equilibrium model. Nine different scenarios have been considered. The long-term results of the proposed tax reform should not hamper the country's economic development, provided that the appropriate tax option is used. The reform has to be implemented as a package of changes in the entire tax system.

Date: 2009
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DOI: 10.1080/13504850701221816

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