Keywords: computable general equilibrium model, economy and environment, Poland, sulphur dioxide
Economic modelling of sulphur regulations in Poland
This study presents an assessment of the possible consequences of reducing the emission of sulphur dioxide in Poland according to international sulphur agreement. A computable general equilibrium model was used for this purpose. The model, calibrated for 1995, provides results for year 2010 which suggest that future emission reductions may have positive effects on Polish economic indicators. We should not fear an economic slump in the emitting sectors. Some sectors may increase their sulphur dioxide emissions initially and abate them later, rather than decrease their emissions at once. Poor households may gain, because the welfare effect on them will be positive.