This
study presents an assessment of possible consequences of ecological tax reform
for the Polish economy. Computable general equilibrium model has been used. The
model calibrated for the base year 1995 provides results for the year 2005. Six
different scenarios have been considered. Final results confirm both
theoretical and practical implications of the ecological tax reforms
experiences in Western European countries. The reform is the most favorable
when it is based on the concept of shifting tax burden from labor force or
households' income to environmental pollution. Long-run effects of the proposed
tax reform in Poland would not slow down the economic growth. The reform,
however, has to be implemented as a package of changes in the entire tax
system. Such comprehensive reform could even contribute to economic growth of
the Polish economy.
Keywords: Ecological tax reform; Computable
general equilibrium modeling; Energy and environment