Next Article in Journal
Toward Sustainability: Novelties, Areas of Learning and Innovation in Urban Agriculture
Next Article in Special Issue
Designing Policy Mixes for Resource Efficiency: The Role of Public Acceptability
Previous Article in Journal
Evaluation of Interactive Website Design Indicators for e-Entrepreneurship
Previous Article in Special Issue
Using Scenarios to Assess Policy Mixes for Resource Efficiency and Eco-Innovation in Different Fiscal Policy Frameworks
Article Menu

Export Article

Open AccessArticle
Sustainability 2016, 8(4), 352; doi:10.3390/su8040352

Input vs. Output Taxation—A DSGE Approach to Modelling Resource Decoupling

1
Institute for Structural Research, Warsaw 02-516, Poland
2
Warsaw School of Economics, Warsaw 02-554, Poland
*
Author to whom correspondence should be addressed.
Academic Editors: Tomas Ekvall, Francesca Montevecchi, Martin Hirschnitz-Garbers, Martha Bicket and Patrick ten Brink
Received: 8 February 2016 / Revised: 1 April 2016 / Accepted: 5 April 2016 / Published: 12 April 2016
View Full-Text   |   Download PDF [3141 KB, uploaded 12 April 2016]   |  

Abstract

Environmental taxes constitute a crucial instrument aimed at reducing resource use through lower production losses, resource-leaner products, and more resource-efficient production processes. In this paper we focus on material use and apply a multi-sector dynamic stochastic general equilibrium (DSGE) model to study two types of taxation: tax on material inputs used by industry, energy, construction, and transport sectors, and tax on output of these sectors. We allow for endogenous adoption of resource-saving technologies. We calibrate the model for the EU27 area using an IO matrix. We consider taxation introduced from 2021 and simulate its impact until 2050. We compare the taxes along their ability to induce reduction in material use and raise revenue. We also consider the effect of spending this revenue on reduction of labour taxation. We find that input and output taxation create contrasting incentives and have opposite effects on resource efficiency. The material input tax induces investment in efficiency-improving technology which, in the long term, results in GDP and employment by 15%–20% higher than in the case of a comparable output tax. We also find that using revenues to reduce taxes on labour has stronger beneficial effects for the input tax. View Full-Text
Keywords: DSGE model; resource decoupling; technological change; environmental taxes; environmental policy; double dividend DSGE model; resource decoupling; technological change; environmental taxes; environmental policy; double dividend
Figures

Figure 1

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

Scifeed alert for new publications

Never miss any articles matching your research from any publisher
  • Get alerts for new papers matching your research
  • Find out the new papers from selected authors
  • Updated daily for 49'000+ journals and 6000+ publishers
  • Define your Scifeed now

SciFeed Share & Cite This Article

MDPI and ACS Style

Antosiewicz, M.; Lewandowski, P.; Witajewski-Baltvilks, J. Input vs. Output Taxation—A DSGE Approach to Modelling Resource Decoupling. Sustainability 2016, 8, 352.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics

1

Comments

[Return to top]
Sustainability EISSN 2071-1050 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top