Abstract

ROMERO, Germán; ALVAREZ-ESPINOSA, Andrés; CALDERON, Silvia  and  ORDONEZ, Alejandro. Redistributive impacts of a carbon tax in Colombia: the link between models of microsimulations and general equilibrium. Lect. Econ. [online]. 2018, n.89, pp.163-198. ISSN 0120-2596.  https://doi.org/10.17533/udea.le.n89a06.

This paper examines the redistributive effects of taxing carbon dioxide emissions on household welfare through changes in prices of consumer goods. To this end, the results of a computable general equilibrium model are sequentially integrated with a household-level analysis based on microsimulation models (MSM). The analysis also allows for comparisons between the effects of using arithmetic and behavioral MSMs. Results show that a carbon tax has negative effects on population welfare, with higher-income households being the most affected and middle-class households the least. Finally, a number of policy recommendations for reducing emissions and including well-being criteria in mitigation measures are presented.

JEL: H20, Q50.

Keywords : carbon tax; microsimulations; AIDS; QAIDS; mitigation; climate change.

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