GENERAL EQUILIBRIUM MODELLING OF SULFUR REGULATIONS IN POLAND

Abstract

This study presents an assessment of possible consequences of SO₂ emission reduction by the Polish economy according to international sulfur agreement. Computable General Equilibrium model has been used for this purpose. The model calibrated for the 1995 provides results for year 2010. The simulation results suggest that future emission reduction may have a positive effects on Polish economic indicators. We should not afraid a slump in emitting sectors. Some sectors may increase their SO₂ emission and abate it afterwards, rather than decrease their emission at once. The poor households may even gain, because their welfare effect will be positive.

Keywords: Computable general equilibrium model; Sulfur dioxide; Economy and environment