Impact of Optimal Economic Taxes Setting on Achieving Sustainable Development – an Experimental CGE Model Approach

Abstract :

the paper focus on the construction of a static CGE model of experimental nature and follows upon simulations on optimal sales and income tax rates setting under the consideration of an objective function encapsulating  the goal of ecological improvement. We conclude that while each of the economic taxes can impact on the fulfillment of environmental objective, the manipulation of sales tax brings about better outcomes in this regard as compared to income tax determination.