CLIMATE CLUBS WITH TAX REVENUE RECYCLING, TARIFFS, AND TRANSFERS

2021 ◽  
pp. 103-116
Author(s):  
DAIGEE SHAW ◽  
YU-HSUAN FU
Keyword(s):  
Tax Revenue ◽  
Revenue Recycling

scholarly journals U.S. CARBON TAX SCENARIOS AND BIOENERGY

2018 ◽  
Vol 09 (01) ◽  
pp. 1840010 ◽  
Author(s):  
RONALD D. SANDS
Keyword(s):  
Carbon Tax ◽  
Tax Revenue ◽  
Welfare Costs ◽  
Revenue Recycling ◽  
Tax Revenues ◽  
Lump Sum ◽  
Labor Tax ◽  
Capital Tax ◽  
Emf Model ◽  
And Storage

This paper documents application of the Future Agricultural Resources Model (FARM) to stylized carbon tax scenarios specified by the Stanford Energy Modeling Forum (EMF). Model results show that the method of tax revenue recycling makes a difference. Either labor-tax, or capital-tax, recycling can reduce the welfare cost of a carbon tax policy relative to lump sum recycling. Of the two tax recycling options, reducing capital taxes provides the greater reduction in welfare costs. However, carbon tax revenues decline with stringent carbon dioxide (CO2) emission targets and the availability of a negative-emissions technology such as bio-electricity with CO2 capture and storage (BECCS). As BECCS expands, net carbon tax revenues peak and decline due to an offsetting subsidy for carbon sequestration, limiting the potential for labor- or capital-tax recycling to reduce welfare costs of a climate policy.

scholarly journals The Distributional Effect of A Carbon Tax on Income in Taiwan

2020 ◽  
Vol 12 (4) ◽  
pp. 1530 ◽  
Author(s):  
Chun-Chiang Feng ◽  
Kuei-Feng Chang ◽  
Jin-Xu Lin ◽  
Shih-Mo Lin
Keyword(s):  
General Equilibrium ◽  
Computable General Equilibrium ◽  
Carbon Tax ◽  
Tax Revenue ◽  
Green Tax Reform ◽  
Revenue Recycling ◽  
Key Factor ◽  
Energy Environment ◽  
Systems Framework ◽  
The Impact

Environmental issues have become more important worldwide. A carbon tax is a strong tool for cutting carbon emissions directly through the internalization of the external costs of pollution. To mitigate the impact of carbon taxation, it is necessary to recycle the tax revenue into other taxes, subsidies, and transfers. In Taiwan, carbon tax policy has been under consideration. To analyze the effect of carbon tax and tax revenue recycling, this paper adopts a recursive dynamic computable general equilibrium (CGE) model—General Equilibrium Model for Energy, Environment, and Technology (GEMEET)—under a comprehensive economic systems framework. The results show that a suitable recycling mechanism is a key factor for the success of green tax reform for a significant improvement in the economy, environment, and in income distribution, simultaneously.

scholarly journals THE IMPACTS OF IMPLEMENTING THE CARBON TAX ON FOSSIL FUELS: A HYBRID CGE ANALYSIS FOR INDONESIA

2018 ◽  
Vol 40 (2) ◽  
pp. 91-105
Author(s):  
Herbert Wibert Victor Hasudungan
Keyword(s):  
Fossil Fuels ◽  
Carbon Tax ◽  
Action Plan ◽  
Ghg Emissions ◽  
Tax Revenue ◽  
Tax Rate ◽  
Revenue Recycling ◽  
Energy Economy ◽  
Ministry Of Finance ◽  
The Government

This paper investigates the environmental and economic impacts of introducing the CO2 taxation on carbon-based fuels using a detailed disaggregation of energy-economy-environmental CGE model for Indonesia. The carbon tax has yet to be implemented in Indonesia. However, this instrument has been considered in the Ministry of Finance report as one of the governments fiscal strategic framework to finance the countrys action plan in commitments to reduce the GHG emissions. Suppose that the government levies the tax of Rp. 100,000/ton CO2e under two possible revenue-recycling scenarios: the carbon tax revenue is recycled through a reduction of labour income tax rate or an increase of government spending on commodities. For comparison purpose, we also implement the non-compensated scenario of which the additional revenue from carbon tax is kept as government savings to run budget surplus. Overall, the results suggested that the carbon tax reduces the national emissions but adding more costs to the economy,resulting a fall in GDP. In terms of income distribution, the carbon tax tends to be progressive in both scenarios of revenue-recycling. However, when there is no compensating mechanism, the carbon tax tends to be regressive - the poorer households carry a higher share of the carbon tax burden.

CLIMATE CLUBS WITH TAX REVENUE RECYCLING, TARIFFS, AND TRANSFERS

2020 ◽  
pp. 2040008
Author(s):  
DAIGEE SHAW ◽  
YU-HSUAN FU
Keyword(s):  
South Korea ◽  
Tax Revenue ◽  
Negative Effects ◽  
Revenue Recycling ◽  
The Core ◽  
The World ◽  
Trade Sanctions ◽  
International Transfers ◽  
Positive Impacts

The E3ME-FTT model is applied to assess the impacts of alternative climate club structures. We consider two kinds of climate club memberships: the World Climate Club (WCC), where every country in the world joins the club, and the Core Climate Club (CCC), with seven likely club members: EU[Formula: see text][Formula: see text][Formula: see text]5, Japan, South Korea, Canada, Brazil, Mexico, and Australia. First, we find that both the WCC and domestic revenue-neutral recycling matter a lot. The global CO2 emissions in 2050 could be reduced by 50% from BAU under the WCC. With domestic revenue-neutral recycling, there will be large positive impacts on GDP under both the WCC and the CCC. Secondly, the negative effects of trade sanctions on cumulative global GDP and global CO2 emissions make it unwelcome to be used as part of the club design. Lastly, the introduction of international transfers will result in a win–win solution that will not only increase the cumulative global GDP and reduce global CO2 emissions but also enhance the equality among club members and induce more likely participation in the climate club.

GROWTH EFFECTS OF CONSUMPTION AND LABOR-INCOME TAXATION IN AN OVERLAPPING-GENERATIONS LIFE-CYCLE MODEL

2010 ◽  
Vol 14 (S2) ◽  
pp. 151-175 ◽  
Author(s):  
Ben J. Heijdra ◽  
Jochen O. Mierau
Keyword(s):  
Life Cycle ◽  
Overlapping Generations ◽  
Negative Impact ◽  
Tax Revenue ◽  
Labor Income ◽  
Overlapping Generations Model ◽  
Revenue Recycling ◽  
Age Dependent ◽  
Labor Income Taxation ◽  
Consumption Saving

We study labor-income and consumption taxation in an overlapping-generations model featuring endogenous growth due to interfirm investment externalities. Consumption, saving, and labor supply display life-cycle features because mortality and labor productivity are age-dependent and because annuity markets may be imperfect. The government's method of revenue recycling critically affects the growth consequences of taxation. Purely consumptive government spending has a negative impact on growth. Redistribution of tax revenue from dissavers to savers may lead to an increase in growth due to beneficial intergenerational transfer effects.

scholarly journals EMF32 RESULTS FROM NEMS: REVENUE RECYCLING

2018 ◽  
Vol 09 (01) ◽  
pp. 1840014 ◽  
Author(s):  
VIPIN ARORA ◽  
DAVID DANIELS ◽  
IAN MEAD ◽  
RUSSELL TARVER
Keyword(s):  
Carbon Tax ◽  
Energy Modeling ◽  
Tax Revenue ◽  
Business Taxes ◽  
Revenue Recycling ◽  
Lump Sum

We show results from the National Energy Modeling System generated during the Energy Modeling Forum 32 study — focusing on macroeconomic responses to different methods of recycling carbon tax revenue. We find that recycling such revenue directly to consumers in the form of lump sum payments results in smaller negative GDP impacts than using the revenues to reduce business taxes.

THE IMPACT OF COAL RESOURCE TAX REFORM ON THE CHINESE ECONOMY: A CGE ANALYSIS

2018 ◽  
Vol 63 (03) ◽  
pp. 555-565 ◽  
Author(s):  
YU LIU ◽  
MEIFANG ZHOU
Keyword(s):  
Tax Reform ◽  
Negative Impact ◽  
Chinese Economy ◽  
Tax Revenue ◽  
Consumption Tax ◽  
Ad Valorem Tax ◽  
Revenue Recycling ◽  
Coal Resource ◽  
The Impact ◽  
Ad Valorem

China’s coal resource tax reform, introducing an ad valorem tax to replace previous volume-based tax from December 2014, marked a new stage of the resource pricing mechanism reform. In particular, coal, as a pollution-intensive energy, is the main source of energy for China. With this in mind, it is the time to ask what the impacts of this reform would be on Chinese economy. A computable general equilibrium (CGE) model is applied to explore the impact of a 5% ad valorem coal resource tax on Chinese economy under four scenarios involving distinguished electricity pricing mechanisms and tax revenue recycling scheme by deducting consumption tax. Simulation results show that levying ad valorem tax will reduce the output of energy-intensive industries with minor negative impact on economy. A consumption tax deduction can offset the negative impact on real GDP and help the economy to restructure. The concern that reform will push up inflation is unnecessary, even under the market price mechanism of electricity. In terms of winners, export-oriented industries benefit when no tax revenue recycling, while industries producing private consumption goods benefit when ad valorem coal resource tax revenue is used to deduct consumption tax.

Determinants of Property Tax Revenue : Lessons from Empirical Analysis

2020 ◽  
Author(s):  
Rajul Awasthi ◽  
Tuan Minh Le ◽  
Chenli You
Keyword(s):  
Empirical Analysis ◽  
Property Tax ◽  
Tax Revenue
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