This article presents a simulation of the impact of the carbon tax reform on the Estonian economy using a computable general equilibrium model. Nine different scenarios have been considered. The long-term results of the proposed tax reform should not hamper the country's economic development, provided that the appropriate tax option is used. The reform has to be implemented as a package of changes in the entire tax system.
Markandya, A., & Kiula, O. (2009). Can transition economies implement a carbon tax and hope for a double dividend? The case of Estonia. Applied Economics Letters, 16(7), 705-709. https://doi.org/10.1080/13504850701221816