The impacts of environmental protection tax reform in resource-based regions based on the CGE model

Economic transformation and development serve as effective strategies for resource-based regions to avoid the "resource curse." By optimizing industrial structure and enhancing energy efficiency through government macro-regulation, these regions can achieve sustainable and environment-friendly growth. The general equilibrium model is widely employed to assess the effectiveness of economic transformation and development. In this study, we constructed a provincial social accounting matrix based on macro data from Shanxi, China, to examine the impact of different environmental protection tax rates on the macro economy, industrial structure, and energy consumption. The findings reveal that the implementation of environmental protection tax has successfully optimized the industrial structure and improved energy utilization efficiency. However, it has also led to a slight decline in total output. Hence, it is imperative to establish a more balanced and reasonable environmental protection tax rate to further promote economic transformation and development in resource-based areas. Consequently, this paper puts forth policy recommendations aimed at achieving a harmonious balance between ecological preservation and economic progress in resource-based regions, ultimately enhancing the overall quality of economic development in such areas.

Estimating the economic and social impact of conditional cash transfers from the Prospera Program in Mexico

This research analyses the Prospera program's impact on poverty and income distribution through a computable general equilibrium model. It concludes that transfers to households have a positive impact on the Mexican economy but hide the real problem-the low wage share-that, in the long term, prevents poverty from worsening but does not reduce the population in poverty or inequality. In a scenario without transfers, neither the population in poverty nor the Gini Index decreases significantly. The results obtained lead to an understanding of some of the causes of the high rates of poverty and inequality in Mexico, which in turn have been perpetuated since the economic crisis of 1995. This allows the design of public policies in line with the structural needs of the economy, which combat the problem from the root that generates it, in order to contribute to the reduction of inequality in accordance with the UN Sustainable Development Goal 10.

Comparing the impacts of fossil and renewable energy investments in Indonesia: A simple general equilibrium analysis

Increasing electricity capacity to support economic growth has become a national development priority in Indonesia. The construction of a power plant needs to consider not only economic but also social and environmental impacts because the government can choose between fossil-based and renewable energy-based power plants. Thus, the decision to invest in a particular type of power plant technology must consider sustainability criteria. Using the social accounting matrix, this study aimed to simulate the impacts of an investment in a coal-fired power plant and compare those to the impacts of investments in renewable energy-based plants (geothermal, hydro, wind, and solar). The simulation results revealed that geothermal and wind power plants required the most significant investment and would increase the gross domestic product by 0.67% and 0.66%, respectively, representing the highest net value added to the economy compared to that of the other power plant options. The construction of a wind power plant promotes employment the most, by 0.70%. However, none of the power plant construction significantly affected income disparity. Additionally, compared to certain renewable power plants, a coal power plant might require less investment and have better employment and economic impacts. Nevertheless, its continuous emission effect from operation needs to be considered.

Estimating the money flow in the economy attributed to rotavirus disease and vaccination in the Netherlands using a Social Accounting Matrix (SAM) framework

Background: The economics of rotavirus gastroenteritis in infants <5 years old is well-known within healthcare. The financial consequences for families, employers and authorities are not so well explored. The present study evaluates how vaccine prevention changes money flows among those involved in the management of disease, and its consequences. Methods: A Social Accounting Matrix (SAM) framework has been developed reflecting the distribution of income and spending at equilibrium affected by rotavirus disease among all those concerned for 1 year. The data came from official sources and published literature. A comparison of the financial equilibrium between with and without a national rotavirus immunization program has been conducted, along with sensitivity analysis for the results. Results: The total financial cost difference at equilibrium between presence and absence of rotavirus vaccination was +€26.758 million over one year as a net economic surplus. The payment of vaccination (€19.194 million) by the government was offset by the increase in tax revenue (€14.561 million) and by the lower spending in treatment care (€7.998 million). Conclusion: Studying the financial flows between different transacting agents can demonstrate the financial burden of a disease and the benefits of its prevention on agents' income and spending.

Tobacco-free economy: A SAM-based multiplier model to quantify the impact of changes in tobacco demand in Bangladesh

In Bangladesh, where tobacco use is pervasive, reducing tobacco use is economically beneficial. This paper uses the latest Bangladesh social accounting matrix (SAM) multiplier model to quantify the economy-wide impact of demand-driven changes in tobacco cultivation, bidi industries, and cigarette industries. First, we compute various income multiplier values (i.e. backward linkages) for all production activities in the economy to quantify the impact of changes in demand for the corresponding products on gross output for 86 activities, demand for 86 commodities, returns to four factors of production, and income for eight household groups. Next, we rank tobacco production activities by income multiplier values relative to other sectors. Finally, we present three hypothetical 'tobacco-free economy' scenarios by diverting demand from tobacco products into other sectors of the economy and quantifying the economy-wide impact. The simulation exercises with three different tobacco-free scenarios show that, compared to the baseline values, total sectoral output increases by 0.92%, 1.3%, and 0.75%. The corresponding increases in the total factor returns (i.e. GDP) are 1.57%, 1.75%, and 1.75%. Similarly, total household income increases by 1.40%, 1.58%, and 1.55%.