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A General-Equilibrium Analysis of European Carbon/Energy Taxation

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Welsch, H., Hoster, F. A General-Equilibrium Analysis of European Carbon/Energy Taxation. . Model Structure and Macroeconomic Results. Journal of Contextual Economics – Schmollers Jahrbuch, 115(2), 275-303. https://doi.org/10.3790/schm.115.2.275
Welsch, Heinz and Hoster, Frank "A General-Equilibrium Analysis of European Carbon/Energy Taxation. Model Structure and Macroeconomic Results. " Journal of Contextual Economics – Schmollers Jahrbuch 115.2, 1995, 275-303. https://doi.org/10.3790/schm.115.2.275
Welsch, Heinz/Hoster, Frank (1995): A General-Equilibrium Analysis of European Carbon/Energy Taxation, in: Journal of Contextual Economics – Schmollers Jahrbuch, vol. 115, iss. 2, 275-303, [online] https://doi.org/10.3790/schm.115.2.275

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A General-Equilibrium Analysis of European Carbon/Energy Taxation

Model Structure and Macroeconomic Results

Welsch, Heinz | Hoster, Frank

Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 115 (1995), Iss. 2 : pp. 275–303

3 Citations (CrossRef)

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Article Details

Welsch, Heinz

Hoster, Frank

Cited By

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  3. CO2 - Eine Herausforderung für die Menschheit

    Steuern zur CO2-Minderung in der Europäischen Union

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    1997

    https://doi.org/10.1007/978-3-642-60545-1_13 [Citations: 0]

Abstract

The paper provides a quantitative assessment of an EC-wide carbon/energy tax and a national energy tax in Germany. Emphasis is placed on the issue of tax recycling and on international feedback effects. The analysis utilizes a recursively-dynamic two-region general equilibrium model of- the European Community. The model takes account of both embodied and disembodied technical progress. Other features include the endogenous treatment of the interest rate and the flexible exchange rate of the EC vis a vis the rest of the world. Our results indicate that the macroeconomic effects of both taxes are systematically influenced by the way in which taxes are recycled into the economy. Also, we find that a purely national tax may be noteably less unfavorable than frequently expected.