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The E3-Brazil Model (Pollitt)

The E3-Brazil Model by Hector Pollitt in the Green Fiscal Policy Workshop, Brasilia (2015).

“Summary Conclusions

• 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…”

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