Abstract
This paper presents the first comprehensive, model-based impact analysis of the German environmental fiscal reform, addressing the effects on CO2 emissions, economic growth, employment, and personal income distribution. Both an econometric input-output model and a dynamic computable general equilibrium model are applied in order to enhance the credibility of our results. The macroeconomic results are linked with a micro-simulation model of the household sector, so that detailed household data can be used to determine the effect of the environmental fiscal reform on personal income distribution. We find a small 'double dividend' in that energy consumption and CO2 emissions decrease while employment rises. The impact on economic growth is found to be minimal. The fear that the environmental fiscal reform might interfere with the goals of social and income-distribution policy is found to be largely unjustified.
| Original language | English |
|---|---|
| Pages (from-to) | 803-811 |
| Number of pages | 9 |
| Journal | Energy Policy |
| Volume | 30 |
| Issue number | 9 |
| DOIs | |
| Publication status | Published - Jul 2002 |
| Externally published | Yes |
Keywords
- Environmental fiscal reform
- Impact analysis
- Micro-simulation model
- Multi-sector modeling
Cite this
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The effects of environmental fiscal reform in Germany : a simulation study. / Bach, Stefan; Kohlhaas, Michael; Meyer, Bernd; Praetorius, Barbara; Welsch, Heinz.
In: Energy Policy, Vol. 30, No. 9, 07.2002, p. 803-811.Research output: Contribution to journal › Article › Research › peer-review
TY - JOUR
T1 - The effects of environmental fiscal reform in Germany
T2 - a simulation study
AU - Bach, Stefan
AU - Kohlhaas, Michael
AU - Meyer, Bernd
AU - Praetorius, Barbara
AU - Welsch, Heinz
PY - 2002/7
Y1 - 2002/7
N2 - This paper presents the first comprehensive, model-based impact analysis of the German environmental fiscal reform, addressing the effects on CO2 emissions, economic growth, employment, and personal income distribution. Both an econometric input-output model and a dynamic computable general equilibrium model are applied in order to enhance the credibility of our results. The macroeconomic results are linked with a micro-simulation model of the household sector, so that detailed household data can be used to determine the effect of the environmental fiscal reform on personal income distribution. We find a small 'double dividend' in that energy consumption and CO2 emissions decrease while employment rises. The impact on economic growth is found to be minimal. The fear that the environmental fiscal reform might interfere with the goals of social and income-distribution policy is found to be largely unjustified.
AB - This paper presents the first comprehensive, model-based impact analysis of the German environmental fiscal reform, addressing the effects on CO2 emissions, economic growth, employment, and personal income distribution. Both an econometric input-output model and a dynamic computable general equilibrium model are applied in order to enhance the credibility of our results. The macroeconomic results are linked with a micro-simulation model of the household sector, so that detailed household data can be used to determine the effect of the environmental fiscal reform on personal income distribution. We find a small 'double dividend' in that energy consumption and CO2 emissions decrease while employment rises. The impact on economic growth is found to be minimal. The fear that the environmental fiscal reform might interfere with the goals of social and income-distribution policy is found to be largely unjustified.
KW - Environmental fiscal reform
KW - Impact analysis
KW - Micro-simulation model
KW - Multi-sector modeling
UR - http://www.scopus.com/inward/record.url?scp=0036645396&partnerID=8YFLogxK
U2 - 10.1016/S0301-4215(02)00005-8
DO - 10.1016/S0301-4215(02)00005-8
M3 - Article
VL - 30
SP - 803
EP - 811
JO - Energy Policy
JF - Energy Policy
SN - 0301-4215
IS - 9
ER -