Economic modelling of sulfur regulations in Poland

This study presents an assessment of the possible consequences of reducing the emission of sulfur dioxide in Poland according to international sulfur agreement. A computable general equilibrium model was used for this purpose. The model, calibrated for 1995, provides results for year 2010 which suggest that future emission reductions may have positive effects on Polish economic indicators. We should not fear an economic slump in the emitting sectors. Some sectors may increase their sulfur dioxide emissions initially and abate them later, rather than decrease their emissions at once. Poor households may gain, because the welfare effect on them will be positive.