Publication type
EUROMOD Working Paper Series
Series Number
EM12/13
Series
EUROMOD Working Paper Series
Author
Publication date
July 30, 2013
Abstract:
We analyse the distributional effects of increased oil excises in Belgium by combining a
Computable General Equilibrium (CGE) model with the EUROMOD microsimulation framework
that exploits the rich detail of household-level data. The link between the CGE model and the
micro level is top-down, feeding changes in commodity prices, factor returns and employment by
sector into a non-behavioural microsimulation. The results suggest that policymakers face an
equity-efficiency trade-off driven by the choice of revenue recycling options. Distributional effects
of the environmental tax reform appear to depend strongly on changes in factor prices and welfare
payments.
Subjects
Paper download#521791