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Distributional effects of Finland’s climate policy package – Calculations with the new income distribution module of the VATTAGE model

Author

Listed:
  • Honkatukia, Juha
  • Kinnunen, Jouko
  • Marttila, Kimmo

Abstract

In this report we present a new version of the VATTAGE AGE (Applied General Equilibrium) model, which enables distributional analysis of policy changes. We also report estimation results of LES consumption function for eight socioeconomic groups. We use climate policy as an example for the distributional effects. Our model results show that the planned climate policy measures are not very regressive in their nature. In contrast, they seem to distribute the costs of climate policy rather evenly. An exception to this rule is farmer households, the real consumption of which seems to reduce less than that of other groups.

Suggested Citation

  • Honkatukia, Juha & Kinnunen, Jouko & Marttila, Kimmo, 2009. "Distributional effects of Finland’s climate policy package – Calculations with the new income distribution module of the VATTAGE model," Conference papers 331821, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331821
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