At the steering committee, we presented the first results of both the computable general equilibrium and the microsimulation models, as well as the results of the first survey on public acceptability.
The model results highlighted the labor market and distributional impacts of a standard climate tax shift (CTS) scenario. We found that such CTS could risk adding to current job polarization trends. Also, integrating wage impacts from a macroeconomic model into a microsimulation has the potential to enhance the standard analysis of the distributional impacts of CTS.
The first survey revealed a marked difference in acceptability of CTS according to their nature and to pre-existing attitudes towards climate change. Most notably, whereas climate skeptical audience segments display a low acceptance of CTS except for labour and VAT tax reduction.
The meeting of the steering committee was held at the Federal Planning Bureau.