GTAP Resources: Resource Display

GTAP Resource #7755

"Towards Hybrid Economy-Wide Frameworks for the Distributional Assessment of Climate Policies"
Authors: Veruete, Inaki, Milan Scasny and Matej Opatrny


Abstract
We develop IO-DASMOD, a comparative-static, price-endogenous input–output
model with heterogeneous households designed for distributional fiscal and envi-
ronmental policy analysis. The model couples an 89-industry Leontief production
structure derived from Eurostat Supply and Use Tables with a microsimulation layer
built on approximately 3 200 individual households drawn from merged Household
Budget Survey and EU-SILC microdata for the Czech Republic. Unlike the stan-
dard IO tradition, which treats the demand-driven quantity model and the cost-push
price model as independent modules, IO-DASMOD solves prices and quantities si-
multaneously: industry prices enter household budgets through factor incomes, and
household consumption feeds back into sectoral output through the Leontief quan-
tity balance. We describe the multi-stage data preparation that traces household
expenditures from COICOP survey categories through CPA products and valuation
conversions to NACE industries, and present the full system of model equations.
We illustrate the model with a set of uniform carbon-pricing scenarios without rev-
enue recycling, finding that the gross burden is regressive: in the strongest scenario
(3 000 CZK/tCO2), real equivalised disposable income falls by 2.89% for the bot-
tom decile and by 0.84% for the top decile. The anchored poverty rate rises by 1.7
percentage points. The results demonstrate the model’s capacity to trace policy
shocks from industry costs through to household-level welfare indicators, providing
a transparent screening tool for distributional climate-policy design.


Resource Details () GTAP Keywords
Category: 2026 Conference Paper
Status: Published
By/In: Presented during the 29th Annual Conference on Global Economic Analysis (Kyoto, Japan)
Date: 2026
Version: 1
Created: Veruete, I. (4/13/2026)
Updated: Veruete, I. (6/9/2026)
Visits: 69
- Environmental policies
- Advances in quantitative methods
- Model integration and coupling
- Partial and general equilibrium models
- Europe (Eastern)


Attachments
If you have trouble accessing any of the attachments below due to disability, please contact the authors listed above.


Public Access
  pdf File format Paper  (1.3 MB)   Replicated: 0 time(s)
  pdf File format Presentation  (1.2 MB)   Replicated: 0 time(s)


Restricted Access
No documents have been attached.


Special Instructions
No instructions have been specified.


Comments (0 posted)
You must log in before entering comments.

No comments have been posted.