MACROECONOMIC IMPACTS OF CO2 REDUCTION POLICIES

Heinz Glueck and Stefan P. Schleicher
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Heinz Glueck: Austrian National Bank, Department of Economics, P.O. Box 61. A-1011 Vienna, Austria
Stefan P. Schleicher: University of Graz, Department of Economics, Universitaetsstrasse 15/F4, A-8010 Graz, Austria

Chapter 8 in Link Proceedings 1991, 1992:Selected Papers from Meetings in Moscow, 1991, and Ankara, 1992, 1998, pp 172-182 from World Scientific Publishing Co. Pte. Ltd.

Abstract: AbstractWe present in this paper a synthesis of a bottom-up model of the energy sector with a macroeconomic model in order to simulate various options for CO2 reduction policies, as a shift to high efficiency technologies both in the application and transformation of energy and to renewable energy sources. Special emphasis is given to tax policies for stimulating these technologies and to the evaluation of the macroeconomic impacts of these policy options. The main result of our research indicates that a well designed tax reform package will not only encourage the implementation of the desired technologies but also have a positive impact on conventional economic indicators as GDP and employment.

Date: 1998
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