Institute for Economic
and Environmental Policy

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Macroeconomic Modelling of Government Interventions in the Field of Environmental Protection and their Impacts on the Macroeconomic Aggregates of the Czech Republic

Analyzing the influences of implemented administrative and economic instruments of environmental protection on macroeconomic aggregates (GDP and inflation rate).

Dynamic changes in environmental protection during the transformation period had a significant impact on macroeconomic variables in the Czech Republic. The introduction of strict limits for dangerous substances emissions or increased demands on the quality of water treatment plants caused considerable additional investments and costs for enterprises and households. It implicitly influenced the values chosen for macro-aggregates, e. g. growth of GDP or the inflation rate.
The aim of the project was to model the expected changes in state environmental policyv in the Czech Republic.

Funding Agency: Czech Ministry of the Environment
Duration: 2004-2005
Contact Person: Lenka Slavíková (slavikova@ieep.cz)
Researchers: Jan Pavel, Jan Slavík, Jan Brůha, Lenka Čamrová (Slavíková); Milan Ščasný; Eva Tošovská
In Cooperation with: Environment Centre-Charles University (Centrum pro otázky životního prostředí UK)
Outputs: Pavel J. (ed.) (2006): Národohospodářské modely dopadů opatření politiky životního prostředí na makroekonomické agregáty v České republice (Macroeconomic modelling of government interventions in the field of environmental protection and their impacts on the macroeconomic aggregates of the Czech Republic), Praha: IEEP VŠE, ISBN 80–86684–40–7.
Use of Results: The main output of the project was a macroeconomic model which enables the realization of an ex-ante evaluation of state interventions in the environmental field from the point of view of their macroeconomic impact.