Distributional Effects of Carbon Pricing in Ireland: A CGE Approach Using GTAP
12:00 - 13:30
A CGE model is developed which combines two different versions of the GTAP model, namely GTAP-E (Burniaux and Truong , McDougall and Golub ) and GTAP-MH (Gotor and Tsigas ). The first links together energy-related CO2 emissions and the economy, the second allows for multiple representative households. A number of features not present in GTAP-E or GTAP-MH are introduced too. Among these, renewables (hydro, wind and solar) are added within the electricity sector. The model is used to simulate the impact of a $20/tCO2 tax on the Irish economy, with a focus on distributional effects. Five revenue recycling schemes are considered and for each of them a separate scenario is run.