Keywords
sustainable development
computable general equilibrium
energy
dynamic models
política ambiental
desarrollo sustentable
equilibrio general computable
energía
modelos dinámicos
How to Cite
Abstract
The objective of this work is to evaluate the effectiveness of an environmental policy that promotes the substitution of fossil fuels for renewable alternatives, to reduce carbon dioxide emissions. A dynamic computable general equilibrium model is used for the Mexican economy simulating economic scenarios with two elasticities of substitution, when two of the energy goods that use fossil fuels are taxed together. The impacts on aggregate production and social well-being are quantified or measured. The analysis shows that the effectiveness of the policy depends on the elasticity of substitution. The rigid scenario is partially effective, since the demands of all the energies, fossils and renewable are reduced. The flexible scenario
turns out to be effective, favoring the substitution between energies. The demand of all energies is further reduced in the rigid scenario than in the flexible. In each scenario, increasing the tax reduces GDP and social
welfare in relation to the reference equilibrium.
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