 Carbon Abatement and its international effects in Europe including effects on other pollutants: a general equilibrium approachTerence Edwards and John P Hutton Discussion Papers from Department of Economics, University of York Abstract: This paper outlines the development of a CGE model as a tool for analysing many of the issues relating to the introduction of environmental taxation, such as interaction with other taxes, revenue recycling, international carbon 'leakage' and tax export effects. The model is linked to IIASA's RAINS model to expand the analysis to cover other cross-boundary pollution. Analysis of a 30 ECU per tonne carbon tax applied in Germany, the UK and the rest of the European Union indicate that it could achieve savings of the order of 20 per cent in carbon emissions compared to business as usual, at little economic cost to the EU countries. The emission savings may be slightly higher in Germany and lower in the UK than the rest of the EU, while the latter would also gain more from terms of trade effects. The tax would bring substantial savings in sulphur emissions. Alternatively, if emissions were allowed to stay constant, the saving on abatement technology would mean a modest improvement in the net cost of the tax. Effects on Nitrogen emissions are smaller. New Economics Papers: this item is included in nep-agr, nep-ene, nep-env, nep-pbe and nep-pub Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:yor:yorken:98/26 Access Statistics for this paper More papers in Discussion Papers from Department of Economics, University of York Department of Economics and Related Studies, University of York, York, YO10 5DD, United Kingdom. Contact information at EDIRC. |
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