Title: AGE assessment of interactions between climate change policy instruments and pre-existing taxes: the case of Ireland

Authors: Wiepke Wissema, Rob Dellink

Addresses: Department of Economics, Trinity College Dublin, Ireland; Environmental Economics and Natural Resources Group, Wageningen University, The Netherlands. ' Institute for Environmental Studies, VU University Amsterdam, The Netherlands; Environmental Economics and Natural Resources Group, Wageningen University, The Netherlands

Abstract: We introduce a computable general equilibrium model for Ireland to investigate the impact of climate policy on the Irish economy, taking special notice of interactions with the existing tax structure. To this end, we extend the model with a detailed representation of the tax system using separate tax data on all transactions, both intermediate and final demand. We simulate the implementation of auctioned CO2 emissions trading and specific CO2 taxation in Ireland and compare different methods to recycle the revenues. The extended tax specification facilitates a thorough second-best analysis.

Keywords: applied general equilibrium; climate change; energy taxes; Ireland; policy instruments; pre-existing taxes; equilibrium modelling; climate policy; CO2 emissions; carbon emissions; greenhouse gases; GHG emissions; emissions trading; carbon taxation; carbon dioxide.

DOI: 10.1504/IJGENVI.2010.042091

International Journal of Global Environmental Issues, 2010 Vol.10 No.1/2, pp.46 - 62

Published online: 26 Aug 2011 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article