Distributional effects of emission pricing in a carbon-intensive economy: The case of Poland

dc.contributor.authorAntosiewicz, Marek
dc.contributor.authorFuentes, J. Rodrigo
dc.contributor.authorLewandowski, Piotr
dc.contributor.authorWitajewski-Baltvilks, Jan
dc.date.accessioned2025-01-20T22:01:28Z
dc.date.available2025-01-20T22:01:28Z
dc.date.issued2022
dc.description.abstractWe assess the distributional impact of introducing a carbon tax in a small open economy, using the case of Poland. We use a dynamic general equilibrium model with a search mechanism in the labour market, soft-linked to a microsimulation model based on household budget survey data. We evaluate the impact on various income groups and on inequality. We account for four key channels: the direct (energy) and indirect (other goods) price effects, behavioural adjustment of consumption, and changes in labour income. We consider three of ways to recycle the carbon tax revenue: lump-sum transfer, energy price subsidies, and labour tax reduction. We find that the distributional effects depend on the recycling of revenues. Using them to reduce labor taxation attenuates the negative effect of carbon tax on GDP and employment but increases inequality compared to a lump-sum transfer to households. This finding highlights the trade-off between efficiency and equity. Our results could be relevant for other countries producing fossil fuels, such as South Africa, Germany, or Australia.
dc.description.funderSONATA grant by the National Science Centre, Poland
dc.fuente.origenWOS
dc.identifier.doi10.1016/j.enpol.2021.112678
dc.identifier.eissn1873-6777
dc.identifier.issn0301-4215
dc.identifier.urihttps://doi.org/10.1016/j.enpol.2021.112678
dc.identifier.urihttps://repositorio.uc.cl/handle/11534/93835
dc.identifier.wosidWOS:000718539700007
dc.language.isoen
dc.revistaEnergy policy
dc.rightsacceso restringido
dc.subjectClimate policy
dc.subjectCarbon tax
dc.subjectDistributional effect
dc.subjectMicrosimulation
dc.subjectGeneral equilibrium
dc.subjectEmployment
dc.subject.ods12 Responsible Consumption and Production
dc.subject.ods08 Decent Work and Economic Growth
dc.subject.ods13 Climate Action
dc.subject.ods07 Affordable and Clean Energy
dc.subject.ods09 Industry, Innovation and Infrastructure
dc.subject.odspa12 Producción y consumo responsable
dc.subject.odspa08 Trabajo decente y crecimiento económico
dc.subject.odspa13 Acción por el clima
dc.subject.odspa07 Energía asequible y no contaminante
dc.subject.odspa09 Industria, innovación e infraestructura
dc.titleDistributional effects of emission pricing in a carbon-intensive economy: The case of Poland
dc.typeartículo
dc.volumen160
sipa.indexWOS
sipa.trazabilidadWOS;2025-01-12
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