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.
Keywords:
Rredistributive effects, environmental taxes, computable general equilibrium models, econometric model estimation
JEL classes:
C510 - Model Construction and Estimation
C680 - Computable General Equilibrium Models
H230 - Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
