030603060双碳文全10592碳文库碳文库203060203060203060for 55 Package toward Net Zero Emissionsunder Different Revenue Recycling Schemes203060双碳Carlo OrecchiaFabiana de Cristofaro203060双碳文库Hasan Dudu'20R060双碳文库203060双碳文库203060双碳文库203060双碳文库2030WORLD BANK GROUPOctober 2023203060双碳文全POLICY RESEARCH WORKING PAPER 10592●203060双Abstract2One of Italy's key objectives is to reform and modernize the203060双碳文库different revenue recyclingschemes shifting the tax burdentax system to increase tax efficiency and improve environ-from major direct and indirect taxes to carbon emissions.mental sustainability and regional economic outcomes,inIt finds that well-targeted revenue recycling policies mightline with the European Union strategy.Within the frame-significantly reduce the negative effects.The analysis adoptswork of the European Green Deal,Italy is committed tothe Italian Regional and Environmental Computable Gen-203contributing to the goal of becoming the first climateeral Equilibrium of the Department of Finance model,neutral region by 2050 (the "Fit for 55"package).As anwhich is a new(recursive)dynamic computable generalintermediate step toward the 2050 target,the EuropeanUnion must reduce greenhouse gas emissions by at least 55Economy with technical assistance from the World Bankpercent by 2030 compared to 1990 levels,Carbon pricingIt has a detailed energy specification that allows for capital/is at the core of the proposal,but its full implementationlabor/energy substitution in production,intra-fuel energyis also expected to have regressive effects,harming poorersubstitution across all demand agents,a multi-output andmulti-input production structure,an extended energycompetitiveness.This paper evaluates the effects of thesystem with 11 different types of technologies,multiplecarbon pricing proposal of the "Fit for 55"package onhouscholds to address distributional impacts,and detailedwelfare,sectoral production,and income distribution.Toinformation on the Italian tax system.tackle the adverse social and economic effects,it compares203060双3060203060双203060双碳文库This paper is a product of the Macroeconomics,Trade and Investment Global Practice.It is part of a larger effort by theWorld Bank to provide open access to its research and make a contribution to development policy discussions around theworld.Policy Research Working Papers are also posted on the Web at http://www.worldbank.org/prwp.The authors maybe contacted at hdudu@imf.org.203060双碳文库203060双碳文库203060双碳文库203060双碳文库2030600双碳文库Produced by the Research Support Team