Interactions between trade and environmental policies in the Czech economy

Olga Kiuila

No 2011-16, Working Papers from Faculty of Economic Sciences, University of Warsaw

Abstract: Pollution charges are directly applied on exported and domestic, but not imported commodities. We investigate how environmental taxation affects foreign trade in the Czech Republic. Using computable general equilibrium modeling with bottom-up approach, we consider a small-open economy with endogenous unemployment, fixed exchange rate, ten types of taxes and six air-pollutants. Emission reduction is possible through substitution with less polluting inputs, a reduction of output, or abatement. The results show that the imports should not be affected, except coal and electricity. Exports will increase in the light and the biomass industries. The overall effect on the trade balance is slightly negative.

Keywords: calibration; competitiveness; computable general equilibrium modeling; pollutions; taxes (search for similar items in EconPapers)
JEL-codes: C68 H23 Q56 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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http://www.wne.uw.edu.pl/inf/wyd/WP/WNE_WP56.pdf First version, 2011 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:war:wpaper:2011-16

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