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GTAP Resources: Resource Display

GTAP Resource #6111

"Climate policy design, competitiveness and income distribution"
by Vandyck, Toon, Matthias Weitzel, Krzysztof Wojtowicz, Luis Rey, Anamaria Maftei and Sara Riscado

To get all stakeholders on board, ambitious climate policies need to consider two important dimensions: competitiveness of industries and income distribution across households. Specific policy measures to address these concerns, such as grandfathered allocation of permits and targeted tax recycling schemes, are typically designed and studied separately, without giving much attention to the interaction between the two. Here, we explore different climate policy design options and their implications for international trade and income inequality across households in European countries in 2030 by combining an economy-wide computable general equilibrium model with a household-level microsimulation model. Results of quantitative simulations reveal opportunities and trade-offs in policy choices, and explore the extent to which combinations of policy measures can reconcile competitiveness and equity dimensions. In line with previous literature, preliminary findings suggest that lump-sum revenue recycling offsets regressive effects on the expenditure side.

Resource Details (Export Citation) GTAP Keywords
Category: 2020 Conference Paper
Status: Published
By/In: Presented during the 23rd Annual Conference on Global Economic Analysis (Virtual Conference)
Date: 2020
Version: Preliminary Draft
Created: Weitzel, M. (4/15/2020)
Updated: Weitzel, M. (5/17/2020)
Visits: 1,200
- Climate change policy
- Economic analysis of poverty
- European Union

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  File format Paper.pdf  (1.5 MB)   Replicated: 4 time(s)
       (Restricted to: 23rd Annual Conference Participant)

  File format 2020GTAPConf_Presentation_Weitzel.pdf  (1.2 MB)   Replicated: 4 time(s)
       (Restricted to: 23rd Annual Conference Participant)

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