scholarly journals Effects of ups and downs of the Mongolian mining sector

2018 ◽  
Vol 23 (5) ◽  
pp. 527-542 ◽  
Author(s):  
Tsolmon Baatarzorig ◽  
Ragchaasuren Galindev ◽  
Hélène Maisonnave
Keyword(s):  
Computable General Equilibrium ◽  
Computable General Equilibrium Model ◽  
Dutch Disease ◽  
Fiscal Rules ◽  
Market Condition ◽  
Mining Sector ◽  
Export Shares ◽  
The Government ◽  
Stable Growth ◽  
Disease Effect

AbstractThe economy of Mongolia, a country rich in natural resources, is increasingly dependent upon the mining sector. International prices of mining commodities have been highly volatile in recent years. This paper uses a computable general equilibrium model to examine the short-term effects on the Mongolian economy of two scenarios: (1) a moderate boom in the coal market; and (2) a drop in the world price of metal ores. It is found that the Dutch disease effect generated by the shocks is insignificant given the structure of the economy (e.g., small export shares and low export intensity of manufacturing and agriculture commodities) and a labor market condition with high unemployment. Since the economy is largely dependent upon on the mining sector, the impacts of the shocks are jarring, implying that the government must abide by its fiscal rules for stable growth and prosperity.

scholarly journals Labor exports from Palestine to Israel: a boon or bane for the West Bank economy?

2020 ◽  
Vol 10 (1) ◽  
Author(s):  
Johanes Agbahey ◽  
Khalid Siddig ◽  
Harald Grethe ◽  
Scott McDonald
Keyword(s):  
Exchange Rate ◽  
Computable General Equilibrium ◽  
West Bank ◽  
Computable General Equilibrium Model ◽  
Dutch Disease ◽  
Policy Options ◽  
National Authority ◽  
The West ◽  
Labor Migrations ◽  
Household Incomes

AbstractThis article analyzes the effects on the West Bank economy of temporary Palestinian employment in Israel, using a new database and a computable general equilibrium model. The results show that Palestinian employment in Israel increases household incomes but distorts the operation of the West Bank labor market and increases domestic wages. Employment in Israel increases the real exchange rate of the West Bank leading to “Dutch disease” effects that inhibit the development of the West Bank economy. A decrease in the number of Palestinian workers in Israel reduces household welfare, and constraints on the West Bank economy restrict domestic absorption of the extra labor. Hence, the Palestinian National Authority may seek more labor exports to Israel. This article contributes to the broader discussion on the effects of migration policies on labor-sending economies by demonstrating the nontrivial benefits from labor migrations, but that these benefits come with costs. This article explores policy options for offsetting those costs.

scholarly journals Gold price volatility, tax revenue, and employment: can Burkina Faso's adaptation strategy avoid the natural resource curse?

2018 ◽  
Vol 23 (5) ◽  
pp. 543-557
Author(s):  
Delphine Carole Sisso ◽  
Olivier Beaumais
Keyword(s):  
Burkina Faso ◽  
Natural Resource ◽  
Computable General Equilibrium ◽  
Resource Curse ◽  
Price Volatility ◽  
Economic Benefits ◽  
Gold Price ◽  
Mining Sector ◽  
Natural Resource Curse ◽  
The Government

AbstractSince 2007, Burkina Faso's mining sector has grown quickly, with gold replacing cotton as the country's biggest export. The decline in gold prices since 2012, however, has hit the Burkina Faso economy hard. Using a static computable general equilibrium model, we assess whether – in a context of gold-price decline and volatility – an increase in the tax burden on the mining sector, as implemented by the government of Burkina Faso, is the appropriate way to avoid the natural resource curse. The results show that a tax policy based solely on increasing taxes on the gold sector brings only limited economic benefits, notably in terms of employment, and fails to significantly mitigate the effects of gold-price volatility.

Green Jobs and Renewable Electricity Policies: Employment Impacts of Ontario's Feed-in Tariff

2012 ◽  
Vol 12 (1) ◽  
Author(s):  
Christoph Böhringer ◽  
Nicholas J. Rivers ◽  
Thomas F. Rutherford ◽  
Randall Wigle
Keyword(s):  
Renewable Energy ◽  
Labour Market ◽  
Computable General Equilibrium ◽  
Labour Force ◽  
Labour Force Participation ◽  
Computable General Equilibrium Model ◽  
Green Jobs ◽  
The Government ◽  
Feed In Tariff ◽  
Employment Impacts

Abstract Policy makers justify renewable energy promotion policies partly on the grounds that such policies have positive employment impacts. We apply a computable general equilibrium model to assess the labour market impacts of the feed-in tariff policy used by the Government of Ontario. We find that although the policy is successful at increasing the employment in the `green' sectors of the economy, the policy is also likely to increase the rate of unemployment in the province, and to reduce overall labour force participation. We conclude that policies designed to promote renewable energy should be promoted for the sake of their environmental impacts, not for their labour market effects.

The Effects of Reducing the Motor Fuels Excise Tax on Agriculture in the United States

1997 ◽  
Vol 8 (1) ◽  
pp. 45-63
Author(s):  
Noel D. Uri ◽  
Roy Boyd
Keyword(s):  
United States ◽  
Diesel Fuel ◽  
Computable General Equilibrium ◽  
The United States ◽  
Computable General Equilibrium Model ◽  
Excise Tax ◽  
Goods And Services ◽  
Motor Fuels ◽  
The Government ◽  
The Impact

The analysis in this paper examines the impact of reducing the federal excise tax on gasoline and diesel fuel on the United States economy in general and the agricultural sectors in particular. The analytical approach used in the analysis consists of a computable general equilibrium model composed of fourteen producing sectors. fourteen consuming sectors, six household categories classified by income and a government. The effects of a 4.3 cents per gallon reduction in the excise tax on gasoline and diesel fuel in prices and quantities are examined. The results suggest. for example, a decrease in the tax would result in higher output by the producing sectors (by about $2.86 billion), a decline in output in the agricultural sectors of about 0.01 percent or $18.4 million. an expansion in the consumption of goods and services (by about $3.84 billion), and an increase in welfare (by about $3.59 billion). The government would realize a decrease in revenue of about $2.37 billion. When subjected to a sensitivity analysis. the results are reasonably robust with regard to the assumption of the values of the substitution elasticities.

CARBON TAX FOR ACHIEVING CHINA’S NDC: SIMULATIONS OF SOME DESIGN FEATURES USING A CGE MODEL

2018 ◽  
Vol 09 (03) ◽  
pp. 1850006 ◽  
Author(s):  
GOVINDA R. TIMILSINA ◽  
JING CAO ◽  
MUN HO
Keyword(s):  
Computable General Equilibrium ◽  
Carbon Tax ◽  
Computable General Equilibrium Model ◽  
Market Mechanism ◽  
Economic Consequences ◽  
Design Features ◽  
Lump Sum ◽  
Constant Rate ◽  
The Government ◽  
Distortionary Taxes

China has set a goal of reducing its CO2 intensity of GDP by 60–65% from the 2005 level in 2030 as its nationally determined contribution (NDC) under the Paris Climate Change Agreement. While the government is considering series of market and nonmarket measures to achieve its target, this study assesses the economic consequences if the target were to meet through a market mechanism, carbon tax. We used a dynamic computable general equilibrium model of China for the analysis. The study shows that the level of carbon tax to achieve the NDC target would be different depending on its design features. An increasing carbon tax that starts at a small rate in 2015 and rises to a level to meet the NDC target in 2030 would cause smaller GDP loss than the carbon tax with a constant rate would do. The GDP loss due to the carbon tax would be smaller when the tax revenue is utilized to cut existing distortionary taxes than when it is transferred to households as a lump-sum rebate.

scholarly journals To Whom Should We Grant a Power Plant? Economic Effects of Investment in Nuclear Energy in Poland

Energies ◽  
2020 ◽  
Vol 13 (11) ◽  
pp. 2687 ◽  
Author(s):  
Katarzyna Zawalińska ◽  
Jouko Kinnunen ◽  
Piotr Gradziuk ◽  
Dorota Celińska-Janowicz
Keyword(s):  
Computable General Equilibrium ◽  
Nuclear Power ◽  
Power Plants ◽  
Nuclear Power Plants ◽  
Computable General Equilibrium Model ◽  
Point Of View ◽  
Economic Effects ◽  
Dutch Disease ◽  
Regional Economic ◽  
Technical Parameters

Poland is the most coal-dependent economy and one of the biggest polluters in the EU. In order to alleviate this problem, meet CO2 emission requirements set by EU, and improve the country’s energy security, Poland decided to introduce nuclear power to its energy mix. So far, several potential locations for nuclear power plants have been officially proposed, mainly based on technical parameters, but no comparisons of the economic impact of such locations have been considered. Consequently, the main goal of this paper is to compare the national and regional economic effects of investments in nuclear power plants—for both the construction and exploitation phases—in the four most probable locations, which are similarly beneficial from a technical point of view. In order to simulate these effects, the spatial recursive dynamic Computable General Equilibrium model was calibrated until 2050 including agglomeration effects and featuring the regional economies of all Polish regions. The results show that although the construction phase is beneficial for economic development in all four regions, the exploitation phase is good for only one. The economies of the other regions suffer, to a greater or lesser extent, from the Dutch disease. The paper argues that the regional economic effects of such an investment differ significantly, due to differences in the regions’ economic structures; hence, they should always be taken into account in the final decisions on the power plants’ locations.

scholarly journals TRADE LIBERALIZATION AND ITS EFFECTS ON SUGAR TABLE INDUSTRY, WELFARE, AND ECONOMY: A CASE OF INDONESIA

2018 ◽  
Vol 2 (1) ◽  
Author(s):  
Gunawan Muhamad ◽  
Ario Seno Nugroho
Keyword(s):  
General Equilibrium ◽  
Trade Liberalization ◽  
Equilibrium Model ◽  
Computable General Equilibrium ◽  
Consumer Welfare ◽  
Computable General Equilibrium Model ◽  
General Equilibrium Model ◽  
Tariff Rate ◽  
Input Output ◽  
The Government

ABSTRACT:       This paper examines the effects of trade liberalization on the sugar industry, the consumer welfare, and the whole economy in Indonesia using a computable general equilibrium model based on 2008 Indonesia Input-Output Table. The common argument concerning the effects of trade liberalization is that consumers benefit from trade liberalization while domestic industries suffer from that. However, this paper found that both the consumers and the domestic industries suffer from trade liberalization scenario. The smaller the tariff rate, even if the subsidy rate was applied, the lower the welfare and the utility. The more decrease in the consumer’s welfare and in the utility would be suffered when the trade liberalization scenario was financed by increasing the production tax rate or the income rate. Finally, when the tariff rate was increased and assumed that the government consumption would adjust, the consumer’s welfare, the utility and the overall producer’s income would increase. Even though, the domestic producer in the sugarcane and sugar refinery industry would suffer. Finally, manufacturing sector seems has the highest benefit from trade liberalization while in the agriculture sector is estimated has a minor outcome. Key Words: Trade Liberalization, Computable General Equilibrium (CGE), Sugar, Welfare, UtilityABSTRACT:       Makalah ini membahas dampak liberalisasi perdagangan terhadap industri gula, kesejahteraan konsumen, dan keseluruhan ekonomi di Indonesia dengan menggunakan computable general equilibrium model yang dihitung berdasarkan Tabel Input-Output Indonesia tahun 2008. Perdebatan umum mengenai efek dari liberalisasi perdagangan adalah bahwa konsumen mendapat manfaat dari liberalisasi perdagangan sementara industri dalam negeri menderita dari perdagangan bebas. Namun, dari hasil penelitian ini, peneliti menemukan bahwa konsumen dan industri domestik, sama-sama menderita dari skenario liberalisasi perdagangan. Semakin kecil tingkat tarif, meskipun dengan pemberian subsidi oleh pemerintah, maka semakin rendah tingkat kesejahteraan konsumen dan utilitas. Penurunan kesejahteraan konsumen dan utilitas yang lebih besar akan diderita ketika skenario liberalisasi perdagangan dibiayai dengan menaikkan tarif pajak produksi atau tarif pajak penghasilan.  Akhirnya, ketika tingkat tarif meningkat dan diasumsikan bahwa konsumsi pemerintah akan disesuaikan, kesejahteraan konsumen, utilitas dan pendapatan produsen secara keseluruhan akan meningkat. Meski demikian, produsen dalam negeri di industri tebu dan gula rafinasi akan menderita. Akhirnya, sektor manufaktur diperkirakan mendapat manfaat tertinggi dari liberalisasi perdagangan, sedangkan di sektor pertanian, diperkirakan mendapat manfaat yang rendah.Kata kunci: Liberalisasi Perdagangan, Computable General Equilibrium (CGE) Gula,  Kesejahteraan, Utilitas

Mining booms and growth in Laos – empirical result from CGE model

2016 ◽  
Vol 15 (1) ◽  
pp. 51-61 ◽  
Author(s):  
Phouphet Kyophilavong
Keyword(s):  
Computable General Equilibrium ◽  
Design Methodology ◽  
Negative Impact ◽  
Value Added ◽  
Dutch Disease ◽  
Cge Model ◽  
Mining Sector ◽  
Content Type ◽  
The Impact ◽  
Practical Implications

Purpose This study aims to lay out a framework to quantify the impacts of mining booms on the macro-economy in Laos. Design/methodology/approach A computable general equilibrium (CGE) model is used to investigate the impact of the mining sector on the Laos’ economy by examining this sector’s increase in both stock and the productivity of capital. Findings It was found that higher capital stock and productivity lead to increased value added, production, exports and investment in the mining sector. These increases result in higher real gross domestic product, exports and investment. Unfortunately, the effects from the associated Dutch disease negatively impact real production and value added in the agriculture and industry. Suitable macroeconomic management and prudent administration of the windfall income from mining are therefore important. Practical implications The finding is important for policymakers to implement policy to deal with the negative impact of mining booms. Originality/value It is the first study to attempt to investigate the impact of the mining sector on the Lao economy using the CGE model. Second, we also provide recommendation to cope with the negative impact from mining booms which provide important implications for other developing countries that face the negative impact from mining booms.

The impact of the COVID-19 enforced lockdown and fiscal package on the South African economy and environment: a preliminary analysis

2021 ◽  
pp. 1-14
Author(s):  
Margaret Chitiga-Mabugu ◽  
Martin Henseler ◽  
Ramos Mabugu ◽  
Helene Maisonnave
Keyword(s):  
Computable General Equilibrium ◽  
Carbon Dioxide Emissions ◽  
Computable General Equilibrium Model ◽  
Negative Effects ◽  
Greenhouse Gas Balance ◽  
Policy Makers ◽  
Poor Households ◽  
Short Run ◽  
The Government ◽  
The Impact

Abstract This paper offers a quantitative assessment of the impacts of the COVID-19 pandemic-induced lockdown and government fiscal plan, containing ‘green’ elements on the economy and the environment of South Africa. The analysis uses a dynamic computable general equilibrium model operationalised using a social accounting matrix coupled with a greenhouse gas balance and emissions data. We find that while the economy is harshly impacted by the pandemic in the short term, the government fiscal package ameliorates and cushions the negative effects on poor households. Importantly, an adaptation of the fiscal package towards a ‘greener’ policy achieves the same economic outcome and reduces unemployment. Carbon dioxide emissions decrease in the short run due to economic slowdown. This improvement persists until 2030. These results can be used as decision support for policy makers on how to orient the post COVID-19 policies to be pro-poor and pro-environment, and thus, ‘build back better and fairer’.

Crisis Reactions and Their Consequences for the Real Sector of the Russian Economy

2011 ◽  
pp. 39-50
Author(s):  
V. Lushin
Keyword(s):  
Financial Crisis ◽  
Acute Phase ◽  
Dutch Disease ◽  
Added Value ◽  
Real Sector ◽  
The Real ◽  
Balanced Development ◽  
Russian Economy ◽  
The Government ◽  
State Modernization

The author analyzes factors that led to a deeper fall in output and profitability in the real sector of the Russian economy in comparison with other segments during the acute phase of the financial crisis. It is argued that some contradictions in the government anti-recession policy, activities of the financial sector and natural monopolies lead to pumping out added value created in manufacturing and agriculture, increase symptoms of the «Dutch disease», etc. It is shown that it may threaten the balanced development of the Russian economy, and a set of measures is suggested to minimize these tendencies and create a basis for the state modernization policy.

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