Energy, Economy, and Equity Interactions in a CGE Model for Pakistan

Many developing countries rely heavily on commodity taxes to raise public funds and commodity subsidies to faster social equality. In particular, taxes on energy products are often used to achieve these objectives. In this book the author develops an economy-wide inter industry model for pakistan (GE-PAK) capable of evaluating such policies. Features of the model are: an elaborate treatment of the energy industries and substitution between energy sources; multiple household types; and modelling of inter-region migration. The model is used to quantify the extent to which Pakistan's energy-tax policy is effective in achieving the governments announced objectives and to estimate the welfare costs of taxes on energy products. The author provides a complete set of equations of GE-PAK, a description of data sources and technical computing details. Researchers will find GE-PAK documentation a useful blue print for constructing similar models for other developing countries.