ASSESSMENT OF ECONOMIC EFFECTS FROM DIFFERENT CARBON TAXATION SCENARIOS IN UKRAINE
Анотація
Computable general equilibrium model for Ukraine was used to assess the economic impact of CO2 tax rates changes under different use of revenues from this tax in Ukraine. The initial assumptions and structure of the general equilibrium model for Ukraine were described. The simulation results show that the best option for using CO2 tax revenues is to invest in industry to improve energy efficiency. Using revenues to compensate households for raising prices for goods and services is only a short-term option, as is redistributing revenues to the government. As for the price of CO2 (tax rates), it is shown that at a tax rate of more than 75 euros per ton of CO2 equivalent, Ukraine's economy is experiencing a significant decline. The best thing for Ukraine is to gradually raise the tax rate to the European level in 2040-2050.
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