Modeling impacts of policy measures in the Polish Country Study

As Poland has signed and ratified the Framework Convention on Climate Change (FCCC), proper methodology for modeling the response of the economic system to greenhouse gas (GHG) abatement measures should be developed. The scheme of the Polish Country Study modeling system as well as the modeling algorithm for creating GHG abatement scenarios at the country level are presented. The mechanism of encouraging GHG emission reduction by policy measures is considered. The problem is discussed both from micro- and macroeconomic perspectives. Analysis of externalities was found to be an important element of the Country Study.