Work Package 3: Simulation of carbon taxation and recycling scenarios
Scenario simulations will be conducted with the model developed in Work Package 2. Thereby the effects of the CO2 taxes and revenue recycling mechanisms elaborated in Work Package 1 on the different household types will be assessed. The model analysis will deliver results on the aggregate economic effects (i.e. changes in GDP, value added, and employment) as well as changes in greenhouse gas emissions until 2030 on the national level.
The scenario simulations will also show which household types are most vulnerable to rising energy prices, in terms of e.g. decreasing consumption opportunities or reduced employment opportunities. In addition, the results also reveal which recycling mechanisms are most adequate to alleviate the negative impacts on income distribution and competitiveness.
In order to validate the results a sensitivity analysis will be carried out.