Can a carbon permit system reduce Spanish unemployment?

Arbeitspapier

This paper analyses whether recycling revenues from carbon emission permit auctions can reduce unemployment in the Spanish economy. Spain's deviation from EU's intermediate emission goals is more serious than for most other EU countries, and the unemployment is also well above the EU average. We use a CGE model that includes a matching model with two types of labour, and which allows for different pricing rules and returns-to-scale assumptions. We find that abatement reduces unemployment due to beneficial impacts of recycling the revenue from permit sales. Unemployment is more effectively abated when revenues are used to reduce labour taxes rather than indirect taxes. Contrary to other studies of Europe, we find that the best option is to reduce payroll taxes on skilled labour. This reform is the most successful both in increasing demand and in dampening the supply response to rising wages. All the recycling schemes also generate dividends in terms of welfare, but none offset the abatement costs entirely.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Memorandum ; No. 2004,26

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Computable and Other Applied General Equilibrium Models ; Mobility, Unemployment, and Vacancies: Public Policy ; Nonrenewable Resources and Conservation: Government Policy
• Thema: Spanish unemployment ; Tax reform ; Emission Permit Auctions ; Employment dividend ; Matching functions ; Increasing returns to scale ; Computable general equilibrium models ; Arbeitslosigkeit ; Emissionsrechte ; Öffentliche Einnahmen ; Steuerreform ; Indirekte Steuer ; Beschäftigungseffekt ; Spanien ; Emissionshandel ; CGE-Modelling

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Fæhn, Taran ; Gómez-Plana, Antonio G. ; Kverndokk, Snorre
• Ereignis: Veröffentlichung
• (wer): University of Oslo, Department of Economics
• (wo): Oslo
• (wann): 2004

Weitere Informationen

• Handle: http://hdl.handle.net/10419/63137
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ