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Table 14 Variables in the CEPE model

From: Cost distribution and equity of climate policy in Switzerland

Symbol

Description

Activity levels

Y g

Creation of industrial output or household utility

YX g

Transformation of output to domestic supply or exports

A i

Armington aggregate of domestic supply and imports

AS i, g

Market demand of good i by sector/consumer g

M i

Imports

W c

Welfare from consumption

KM

Imports of capital services

KX

Exports of capital services

LD i

Labor demand by industry i

LS c

Labor supply by aggregate household

KD i

Demand for capital services by industry i

KS c

Supply of capital services by aggregate household

ASE i, tec

Market demand of good i by technology tec

KES tec, c

Supply of technology-specific capital services by household

ETEC tec

Electricity generation

NCM c

Household income

Commodity prices

PW c

Price of household utility

P g

Price of activity g

PD g

Price of domestic supply

PA i

Price of Armington commodity i

PATE i, tec

Price of Armington commodity after taxes

PATS i, g

Price of Armington commodity after taxes

PM i

Price of imports of commodity i

PFX

Price of foreign exchange

PL

Gross wage rate

PLS c

Net employee wage rate

RK

Gross rental rate of capital

RKS c

Net rental rate of capital

RKE tec

Gross rent of tec specific capital

RKES tec, c

Net rent of tec specific capital

PFD f, i

Price of production factor f in industry i

PINC c

Price index of household income

PCO2ETS

Permit price in the Swiss ETS

PCO2

Price of CO 2 emissions from CO 22 tax

PEDT

Price of energy from energy taxation in standardized energy services

PMOT

Mineral oil tax

Consumers

RA c

Representative household

GOVT

Government (tax revenue agent)

Auxiliary variables

PINDEX

Consumer price index

EMICARB

Emissions outside ETS under CO 2 tax

\(MU^{E}_{e}\)

Energy demand under tax on energy good e

REC LS

Volume of transfers for compensating households for carbon and energy tax

REC LT

Reduction in labor tax rate for compensating households for carbon and energy tax

REC VAT

Reduction in value-added tax rate for compensating households for carbon and energy tax