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GTAP Resource #7906

"Different Paths, Different Outcomes: Comparing EU ETS Revenue Recycling Scenarios in a Hybrid CGE Model"
Authors: Veruete, Inaki, Vedunka Kopecna and Milan Scasny


Abstract
This paper assesses the macroeconomic, environmental and distributional impacts of different strategies for recycling EU ETS and ETS2 revenues in the Czech Republic, using a detailed hybrid general equilibrium model (MERCI-CZ) with an integrated bottom-up electricity module with technology-specific detail, and a discrete choice module capturing consumer preferences for vehicle technologies. The analysis confirms that carbon pricing can bring not only emission reductions, but also economic and social benefits if revenue recycling is set up appropriately. At the same time, it shows that the choice of revenue allocation method fundamentally affects the balance between short-term economic stability, long-term structural transformation and social equity.


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:
Created: Kopecna, V. (4/16/2026)
Updated: Kopecna, V. (6/16/2026)
Visits: 121
- Climate change policy
- Climate impacts
- Environmental policies
- Domestic policy analysis
- Partial and general equilibrium models
- Europe (Eastern)
- European Union


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  pdf File format Paper  (1.1 MB)   Replicated: 0 time(s)
  pdf File format Presentation  (1.7 MB)   Replicated: 0 time(s)


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