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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