EconPapers    
Economics at your fingertips  
 

A Real-Business-Cycle model with pollution and environmental taxation: the case of Bulgaria

Aleksandar Vasilev

Bulgarian Economic Papers (www.bep.bg) from St Kliment Ohridski University of Sofia, Faculty of Economics and Business Administration / Center for Economic Theories and Policies

Abstract: We introduce an environmental dimension into a real-business-cycle model augmented with a detailed government sector. We calibrate the model to Bulgarian data for the period following the introduction of the currency board arrangement (1999-2016). We investigate the quantitative importance of utility-enhancing environmental quality, and the mechanics of environmental ("carbon") tax on polluting production, as well as the effect of government spending on pollution abatement over the cycle. In particular, a positive shock to pollution emission in the model works like a positive technological shock, but its effect is quantitatively very small. Allowing for pollution as a by-product of production improves the model performance against data, and in addition this ex- tended setup dominates the standard RBC model framework, e.g., Vasilev (2009).

Keywords: Business cycles; pollution; environmental quality; environmental tax; abatement spending (search for similar items in EconPapers)
JEL-codes: E32 C68 Q2 Q4 Q54 Q58 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge, nep-ene, nep-env, nep-mac and nep-tra
Date: 2018-03, Revised 2018-03
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://www.uni-sofia.bg/index.php/eng/content/dow ... file/BEP-2018-03.pdf First version, 2018 (application/pdf)

Related works:
Journal Article: A Real-Business-Cycle model with pollution and environmental taxation: the case of Bulgaria (2018) Downloads
Working Paper: A Real-Business-Cycle model with pollution and environmental taxation: the case of Bulgaria (2018) Downloads
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:sko:wpaper:bep-2018-03

Access Statistics for this paper

More papers in Bulgarian Economic Papers (www.bep.bg) from St Kliment Ohridski University of Sofia, Faculty of Economics and Business Administration / Center for Economic Theories and Policies Contact information at EDIRC.
Bibliographic data for series maintained by Teodor Sedlarski ().

 
Page updated 2019-04-21
Handle: RePEc:sko:wpaper:bep-2018-03