The E3-Brazil Model by Hector Pollitt in the Green Fiscal Policy Workshop, Brasilia (2015).
• E3-Brazil is a new model designed for the evaluation of tax reforms, including Green Fiscal Policy
• The model is empirical in nature and does not make assumptions about optimisation in human behaviour
• It therefore offers an alternative approach to CGE modelling
• We used the increase in CIDE as a test of the model’s properties
• Preliminary results showed that, over time, there would be a modest negative effect on GDP growth rates and employment
• However, CO2 emissions from road transport fall as well
• The next stage could be to test how this measure compares to other possible tax increases…”