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Short-run impact of the implementation of EU climate and energy package for Poland: computable general equilibrium model simulations

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Abstract

The aim of the study is to analyse the short run impact of the EU climate and energy package on the Polish economy. We employ a computable general equilibrium (CGE) model and focus on the short-run reaction of the economy to the shock, before the persistent structural changes takes place, thereby allowing for short-term policy conclusions. The results show a relatively mild response of the economy to a seemingly significant shock in the costs of production. There is a considerable negative effect on private consumption. While the reaction of the economy depends on the flexibility of the labour market and the response of the investment demand, we observe that while budget-neutral transfers to the households dampen the negative response of private consumption, lowering of labour-related taxes reduce the burden on economic activity.

Suggested Citation

  • Jan Hagemejer & Zbigniew Żółkiewski, 2013. "Short-run impact of the implementation of EU climate and energy package for Poland: computable general equilibrium model simulations," Bank i Kredyt, Narodowy Bank Polski, vol. 44(3), pages 237-260.
    • Handle: RePEc:nbp:nbpbik:v:44:y:2013:i:3:p:237-260
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    1. World Bank, 2011. "Transition to a Low-Emissions Economy in Poland," World Bank Publications - Reports 27419, The World Bank Group.
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    6. Jan Hagemejer & Tomasz Jedrzejowicz & Zbigniew Zolkiewski, 2011. "Fiscal tightening after the crisis. A scenario analysis for Poland," Bank i Kredyt, Narodowy Bank Polski, vol. 42(3), pages 33-66.
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    8. Sam Meng & Mahinda Siriwardana & Judith McNeill, 2013. "The Environmental and Economic Impact of the Carbon Tax in Australia," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 54(3), pages 313-332, March.
    9. Capros, Pantelis & Mantzos, Leonidas & Parousos, Leonidas & Tasios, Nikolaos & Klaassen, Ger & Van Ierland, Tom, 2011. "Analysis of the EU policy package on climate change and renewables," Energy Policy, Elsevier, vol. 39(3), pages 1476-1485, March.
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    13. repec:eid:wpaper:04/10 is not listed on IDEAS
    14. Pascal da Costa & Oualid Gharbi & Pierre Le Mouel & Florent Pratlong & Danielle Schirmann-Duclos & Paul Zagamé, 2010. "Macroeconomic assessment for the EU 'Climate Action and Renewable Energy Package'," Working Papers hal-00995798, HAL.
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    Cited by:

    1. Kiuila, Olga, 2019. "How to avoid strange results in nonlinear dynamic general equilibrium modeling," Conference papers 333051, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Rokicki, Bartlomiej & de Souza, Kenia Barreiro & de Santana Ribeiro, Luiz Carlos, 2023. "Modelling the Effects of the EU Emissions Trading System in Poland: A Comparison Between IO And CGE Results," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 53(2), 14.

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    More about this item

    Keywords

    computable general equilibrium; environmental policy; climate change;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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