A number of recent studies on taxation in the presence of externalities in a second-best framework consider the implications of taking into account the feedback effects of environmental quality. This paper explores by means of GEM-E3, a computable general equilibrium model for the EU countries,...

The paper examines welfare improving and revenue neutral directions marginal policy reforms for an economy with nonidentical individuals and an externality that has a feedback effect on the consumption of taxed goods. It considers three types of policy instruments: the indirect taxes, the...

This paper examines the rationale for the different tax treatment of gasoline and diesel cars currently observed in Europe. First, we analyse possible justifications for a different tax treatment: pure tax revenue considerations, externality considerations and constraints on the tax instruments...

In this paper we present some numerical simulations with the MacGEM model to evaluate the consequences of the recent Marrakesh agreements and the defection of the USA for the Kyoto Protocol. MacGEM is a global marginal abatement cost model for carbon emissions from fossil fuel use based on the...

In this paper we present some numerical simulations with the MacGEM model to evaluate the consequences of the recent Marrakesh agreements and the defection of the USA for the Kyoto Protocol. MacGEM is a global marginal abatement cost model for carbon emissions from fossil fuel use based on the...

This report documents the JRC/IPTS modelling activities of the 2009 European Commission Communication "Towards a comprehensive climate change agreement in Copenhagen", which establishes the EU's position in the Copenhagen negotiations. According to the POLES model, the estimated global direct...

The PESETA research project integrates a set of high-resolution climate change projections and physical models into an economic modelling framework to quantify the impacts of climate change on vulnerable aspects of Europe. Four market impact categories are considered (agriculture, river floods,...

GDP and employment effects of climate policyCGEGDP and employment effects of climate policy