Modelling the Economy-Wide Effects of Unilateral Co2 Pricing Under Different Revenue Recycling Schemes in Austria - Part B: Potentials for a Triple Dividend

28 Pages Posted: 27 Jul 2023

See all articles by Claudia Kettner

Claudia Kettner

Austrian Institute of Economic Research

Thomas Leoni

University of Applied Sciences Wiener Neustadt

Judith Köberl

affiliation not provided to SSRN

Dominik Kortschak

affiliation not provided to SSRN

Mathias Kirchner

affiliation not provided to SSRN

Mark Sommer

affiliation not provided to SSRN

Laura Wallenko

University of Graz

Gabriel Bachner

University of Graz

Jakob Mayer

University of Graz

Nathalie Spittler

affiliation not provided to SSRN

Veronika Kulmer

University of Graz

Abstract

In this paper we identify policy implications for implementing carbon pricing in Austria, taking into account model structure uncertainty (see Part A: Kirchner et al., 2023). Methodologically, we compare the results of two macroeconomic models, DYNK and WEGDYN_AT, to evaluate the effects of carbon pricing under different revenue recycling options. Specifically, we examine the model results with respect to their findings regarding a potential triple dividend, that we define as a reduction in CO2 emissions, positive effects on GDP and employment, and distributionally progressive improvements in household consumption possibilities. Accounting for model structure uncertainty improves the robustness of our results; at least within the macroeconomic frameworks applied here. Our results confirm the tradeoff between equity and efficiency identified in previous analyses. A triple dividend is likely to emerge only for a combination of the recycling options of non-wage labor cost reductions combined with lump-sum per-capita transfers (also known as “climate bonus”).

Keywords: revenue recycling, macroeconomic impacts, distributional impacts, model comparison, Austria, Carbon pricing

Suggested Citation

Kettner, Claudia and Leoni, Thomas and Köberl, Judith and Kortschak, Dominik and Kirchner, Mathias and Sommer, Mark and Wallenko, Laura and Bachner, Gabriel and Mayer, Jakob and Spittler, Nathalie and Kulmer, Veronika, Modelling the Economy-Wide Effects of Unilateral Co2 Pricing Under Different Revenue Recycling Schemes in Austria - Part B: Potentials for a Triple Dividend. Available at SSRN: https://ssrn.com/abstract=4523091 or http://dx.doi.org/10.2139/ssrn.4523091

Claudia Kettner (Contact Author)

Austrian Institute of Economic Research ( email )

P.O. Box 91
Wien, A-1103
Austria

Thomas Leoni

University of Applied Sciences Wiener Neustadt ( email )

Wiener Neustadt
Austria

Judith Köberl

affiliation not provided to SSRN ( email )

No Address Available

Dominik Kortschak

affiliation not provided to SSRN ( email )

No Address Available

Mathias Kirchner

affiliation not provided to SSRN ( email )

No Address Available

Mark Sommer

affiliation not provided to SSRN ( email )

No Address Available

Laura Wallenko

University of Graz ( email )

Universitaetsstrasse 15 / FE
A-8010 Graz, 8010
Austria

Gabriel Bachner

University of Graz ( email )

Brandhofgasse 5
A-8010 Graz, 8010
Austria

Jakob Mayer

University of Graz ( email )

Universitaetsstrasse 15 / FE
A-8010 Graz, 8010
Austria

Nathalie Spittler

affiliation not provided to SSRN ( email )

No Address Available

Veronika Kulmer

University of Graz ( email )

Universitaetsstrasse 15 / FE
A-8010 Graz, 8010
Austria

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
17
Abstract Views
134
PlumX Metrics