Integrating environmental taxes on local air pollutants with fiscal reform in Hungary: Simulations with a computable general Equilibrium model

摘要

This paper describes the Fiscal Environmental Integration Model (FEIM) and its use to examine the merits of introducing a set of air pollutant emission taxes and strin- gent abatement requirements based on best commonly available control technology. These environmental protection strategies are examined both independently and in com- Bination. In addition, Hungary has very high VAT, employment, and income tax rates and Therefore might receive more than the usual advantage from using environmental tax rev- Enues to reduce other taxes.