Environmental Taxes, Inefficient Subsidies and Income Distribution in Chile: A CGE framework

Raúl O'Ryan (), Sebastian Miller and Carlos de Miguel

No 98, Documentos de Trabajo from Centro de Economía Aplicada, Universidad de Chile

Abstract: Successful economic growth followed by Chile, based on open market and export strategy, is characterised by a high dependence on natural resources, and by polluting production and consumption patterns. There is an increasing concern about the need to make potentially significant trade-offs between economic growth and environmental improvements. Additionally, policy-makers have been reluctant to impose standards that could have regressive consequences, making the poor poorer. Using the ECOGEM-Chile model we study the direct and indirect effects of imposing green taxes in Chile for PM10, SO2 and NOx as well as taxes on gasoline. We analyse the effects over macroeconomic variables as well as sectoral, distributive and environmental variables. We also analyse eliminating distotionary subsidies that produce environmental and welfare losses. Evidence of welfare gains, besides environmental gains, and trade-off among sectors is presented that can justify tax/subsidies reforms in developing countries, replacing inefficient taxes/subsidies for more efficient ones.

Date: 2001
New Economics Papers: this item is included in nep-ene and nep-res
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.cea-uchile.cl/wp-content/uploads/doctrab/ASOCFILE120030404113211.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:edj:ceauch:98

Access Statistics for this paper

More papers in Documentos de Trabajo from Centro de Economía Aplicada, Universidad de Chile Contact information at EDIRC.
Bibliographic data for series maintained by ().