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Introducing a new Waste Hierarchy Tax in Sweden: A General Equilibrium Analysis

Lokrantz, Elin LU (2019) NEKP01 20191
Department of Economics
Abstract
The European Commission has recognised the need for a transition to a circular economy paradigm which promotes resource efficiency and sustainable waste management. To achieve such transition, there is a need to introduce new policy instruments that leads to waste management improvements. Quantitative macroeconomic modelling in this area is still scarce and provides few insights about the consequences of policies for waste. This thesis presents a static, closed economy computable general equilibrium model for Sweden, applied to investigate the impact a new waste tax. The tax is based on the European Commission’s five step waste hierarchy that states the priority order of waste treatment options. The impact of the new tax is illustrated by... (More)
The European Commission has recognised the need for a transition to a circular economy paradigm which promotes resource efficiency and sustainable waste management. To achieve such transition, there is a need to introduce new policy instruments that leads to waste management improvements. Quantitative macroeconomic modelling in this area is still scarce and provides few insights about the consequences of policies for waste. This thesis presents a static, closed economy computable general equilibrium model for Sweden, applied to investigate the impact a new waste tax. The tax is based on the European Commission’s five step waste hierarchy that states the priority order of waste treatment options. The impact of the new tax is illustrated by comparing the model’s outcomes in four different policy scenarios. The results show that a tax that complies with the waste hierarchy can contribute to prevent waste generation. Moreover, the results highlight the importance of macroeconomic implications when designing policies for waste. (Less)
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author
Lokrantz, Elin LU
supervisor
organization
course
NEKP01 20191
year
type
H2 - Master's Degree (Two Years)
subject
keywords
CGE model, waste, taxes, Sweden
language
English
id
8980756
date added to LUP
2019-08-08 10:24:41
date last changed
2019-08-08 10:24:41
@misc{8980756,
  abstract     = {The European Commission has recognised the need for a transition to a circular economy paradigm which promotes resource efficiency and sustainable waste management. To achieve such transition, there is a need to introduce new policy instruments that leads to waste management improvements. Quantitative macroeconomic modelling in this area is still scarce and provides few insights about the consequences of policies for waste. This thesis presents a static, closed economy computable general equilibrium model for Sweden, applied to investigate the impact a new waste tax. The tax is based on the European Commission’s five step waste hierarchy that states the priority order of waste treatment options. The impact of the new tax is illustrated by comparing the model’s outcomes in four different policy scenarios. The results show that a tax that complies with the waste hierarchy can contribute to prevent waste generation. Moreover, the results highlight the importance of macroeconomic implications when designing policies for waste.},
  author       = {Lokrantz, Elin},
  keyword      = {CGE model,waste,taxes,Sweden},
  language     = {eng},
  note         = {Student Paper},
  title        = {Introducing a new Waste Hierarchy Tax in Sweden: A General Equilibrium Analysis},
  year         = {2019},
}