Double-dividend analysis with SCREEN : an empirical study for Switzerland

This paper presents an empirical study that quantifies the effects of an ecological fiscal reform as recently rejected by the Swiss population. The measure aims to encourage employment and, at the same time, to dissuade from an excessive energy use and thereby decrease energy-induced external costs (CO2, etc.). The analysis is based on the model SCREEN, a general equilibrium model using the complementarity format for the hybrid description of economy-wide production possibilities where the electricity sector is represented by a bottom-up activity analysis and the other production sectors are characterised by top-down production functions. A dynamic formulation of the activity analysis of technologies allows for the reproduction of endogenous structural change (see Frei, C.W., Haldi, P.-A., Sarlos, G., 2003. Dynamic formulation of a top-down and bottom-up merging energy policy model. Energy Policy 31 (10), 1017–1031.). The labour market is formulated according to the microeconomically founded efficiency wages and calibrated for Switzerland. The study includes the development of a consistent set of top-down, bottom-up and labour data for Switzerland. The collection of bottom-up data on the electricity sector, just before liberalisation, was not easy. The electricity sector characterising data was prepared, based on original statistics about 140 Swiss electricity companies.