Darlington Agbonifi*, Camille Hainnaux**
Lucie Giorgi : lucie.giorgi[at]univ-amu.fr
Ricardo Guzman : ricardo.guzman[at]univ-amu.fr
Natalia Labrador : natalia.labrador-bernate[at]univ-amu.fr
Nathan Vieira : nathan.vieira[at]univ-amu.fr
*This paper presents an integrated methodology to simultaneously estimates the socioeconomic and environmental impacts of public-financed investments in green projects on the labor markets, value-added, and households induced consumption expenditures in a multiregional economy in equilibrium. I construct a novel dataset and then implement an environmentally integrated multiregional social accounting matrix (EI-MRSAM) modelling techniques on the regional macroeconomic investment analyses for Italy. The results show that Lombardy’s intra-regional investment impact on value-added (GDP) share accounts for almost 78%, while 22% accrues to the rest of Italy in terms of interregional value-added spillover effects through trade channels. The intra and interregional value-added benefits impact decreases by almost 10% net-effects after internalizing the social costs of environmental externalities associated with industrial greenhouse gas (GHG) emissions. I then conduct a counterfactual ex-ante macro-policy evaluation of an endogenous increase in the reallocation of investment funds from 4.4% to 20% that support the digital transformation of the public-administration and, acceleration of the timing of judicial proceedings. I find additional increase of 3.3% on potential regional value-added growth relative to the baseline scenario. The distributional impact on households’ consumption expenditures induced by the investments is also consistent with those of value-added.
**This paper explores optimal alternatives to carbon taxation using already existing taxes in the economy and their impact on inequality. I build a two-sector Ramsey model with heterogeneous agents and a climate component, in which climate damages harm the final good sector's productivity and individual utility. I find that there exists an alternative to the standard carbon tax, both in a first- and second-best setting. Under this alternative, the carbon tax on emissions is replaced by a tax on total energy production and a subsidy to abatement. Studying the optimal Ramsey fiscal policy, an additional tax is needed along the carbon tax because of heterogeneity in consumption. Income taxes also become non-zero. Due to the general equilibrium impact of alternatives to carbon taxation, the fiscal alternative to carbon taxation affects inequality through several channels.