Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/223923
Authors: 
Antosiewicz, Marek
Fuentes, J. Rodrigo
Lewandowski, Piotr
Witajewski-Baltvilks, Jan
Year of Publication: 
2020
Series/Report no.: 
IZA Discussion Papers No. 13481
Abstract: 
In this paper, we assess the distributional impact of introducing a carbon tax in Poland. We apply a two-step simulation procedure. First, we evaluate the economy-wide effects with a dynamic general equilibrium model. Second, we use a microsimulation model based on household budget survey data to assess the effects on various income groups and on inequality. We introduce a new adjustment channel related to employment changes, which is qualitatively different from price and behavioural effects, and is quantitatively important. We nd that the overall distributional effect of a carbon tax is largely driven by how the revenue is spent: distributing the revenues from a carbon tax as lump-sum transfers to households reduces income inequality, while spending the revenues on a reduction of labour taxation increases inequality. These results could be relevant for other coal-producing countries, such as South Africa, Germany, or Australia.
Subjects: 
climate policy
carbon tax
distributional effect
microsimulation
general equilibrium
employment
JEL: 
H23
P18
O15
Document Type: 
Working Paper

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