Environmental tax reform and producer foresight : an intertemporal computable general equilibrium analysis
MetadataShow full item record
- Discussion Papers 
This paper analyses the non-environmental welfare costs of an environmental tax reform using a numerical intertemporal general equilibrium model for the Norwegian economy. The tax reform is revenue neutral such that an increase in the carbon tax rate is accompanied by a reduction in the payroll tax. By exploiting existing tax wedges in the labour market and between consumption and saving, the total non-environmental welfare effect of the tax reform is positive. The paper also analyses how imperfect price expectations for the investors in real capital influence the total welfare costs of the tax reform. The welfare effect is the same due to exploitation of initial distortions, but the transitional dynamics are quite different in the two paths. Keywords: Dynamic general equilibrium analysis, Environmental tax reforms, Imperfect expectations
PublisherStatistics Norway, Research Department
SeriesDiscussion Papers;No. 185
Showing items related by title, author, creator and subject.
Markets where buyers also are sellers : how realized home equity may work as an accelerator of house prices Larsen, Erling Røed (Discussion Papers;No. 618, Working paper, 2010)Abstract: The house price level is a function of buyers’ realized home equity, and buyers’ realized home equity is a function of the house price level. This interdependence follows from the fact that buyers are sellers ...
Bye, Brita (Discussion Papers;No. 242, Working paper, 1998)The working of the labour market is important for the total welfare effects of tax reforms. This paper analyses, by using a computable general equilibrium model for the Norwegian economy, how different assumptions about ...
Removing policy based comparative advantage for energy intensive production. Necessary adjustments of the real exchange rate and industry structure Bye, Torstein; Holmøy, Erling; Heide, Kim Massey (Discussion Papers;No. 462, Working paper, 2006)Abstract: National and international expansion of transmission networks and diminishing returns to scale in hydropower capacity expansion has raised the opportunity cost of electricity. The resulting changes in comparative ...