scholarly journals THE SENSITIVITY OF CO2 EMISSIONS UNDER A CARBON TAX TO ALTERNATIVE BASELINE FORECASTS

2018 ◽  
Vol 09 (01) ◽  
pp. 1840012 ◽  
Author(s):  
YUNGUANG CHEN ◽  
LAWRENCE H. GOULDER ◽  
MARC A. C. HAFSTEAD
Keyword(s):  
Energy Efficiency ◽  
Carbon Tax ◽  
Time Profile ◽  
Model Parameters ◽  
Carbon Taxes ◽  
Fuel Production ◽  
Fuel Prices ◽  
Highly Sensitive ◽  
Alternative Scenarios ◽  
Business As Usual

Future carbon dioxide (CO2) emissions under a carbon tax depend on the time-path of the economy under baseline (business-as-usual) conditions as well as the extent to which the policy reduces emissions relative to the baseline. Considerable uncertainties surround the baseline forecasts for fuel prices, energy efficiency (energy-GDP ratios), and GDP, as evidenced by the significant ranges in the forecasts by government agencies and research institutions in the U.S. This paper assesses the significance of these uncertainties to the path of CO2 emissions under a carbon tax. We do this by examining the emissions levels and quantities of abatement that result from the E3 general equilibrium model under a range of alternative baseline forecasts for fuel prices, energy efficiency, and GDP, where the different baselines are produced through suitable changes to key model parameters. In addition, we consider how the time-profile of the carbon tax needed to achieve specified CO2 abatement targets is affected by such forecast-linked changes in parameters. We find that the sensitivity of baseline emissions to alternative forecasts depends on the particular forecasted variable under consideration. Baseline CO2 emissions are highly sensitive to alternative scenarios related to the rate of energy efficiency improvements in the nonenergy sector and the rate of general economic growth. In contrast, such emissions are much less sensitive to alternative scenarios related to the productivity of fossil fuel production. The extent of abatement from the baseline is generally fairly insensitive to changes in the scenarios for time-paths of fuel prices, energy-efficiency and GDP. We also find that short-term emissions targets can be achieved with relatively moderate carbon taxes under all of the baseline scenarios considered.

IMPROVING PRODUCTION EFFICIENCY IN THE ICE CREAM INDUSTRY

2021 ◽  
Author(s):  
Nevena Veselinović ◽  
◽  
Jelena Nikolić
Keyword(s):  
Energy Efficiency ◽  
Renewable Energy ◽  
Production Efficiency ◽  
Carbon Tax ◽  
Renewable Energy Sources ◽  
Ice Cream ◽  
Energy Sources ◽  
Energy Prices ◽  
Carbon Taxes ◽  
Improve Energy Efficiency

The food industry is a large consumer of energy that depends on fossil fuels, the combustion of which releases large amounts of CO2. The paper examines the possibility of reducing the use of non – renewable energy sources through a detailed energy audit and consideration of measures to increase energy efficiency and renewable energy sources in the ice cream craft industry. The cost-effectiveness of the proposed measures is observed for two scenarios. The first scenario covers the current situation in Serbia, in which there are no carbon taxes, and the price of energy is relatively low compared to other countries in Europe. The second „German scenario“ implies carbon taxes in the amount of 55€/tCO2, which is expected to, with the same energy prices, significantly reduce the repayment period and affect the ranking of measures. The analysis is performed to consider how the carbon tax reflects on the motivation of craft producers to improve energy efficiency.

scholarly journals Can We Regulate Our Way to Energy Efficiency? Product Standards as Climate Policy

2018 ◽  
Author(s):  
Noah M. Sachs
Keyword(s):  
Energy Efficiency ◽  
Financial Incentives ◽  
Information Disclosure ◽  
Energy Demand ◽  
Energy Savings ◽  
The United States ◽  
Vital Role ◽  
Political Support ◽  
Carbon Taxes ◽  
Regulatory Approach

In this Article, I demonstrate that the regulatory strategy for energy efficiency is working. Although information disclosure, financial incentives, and other softer alternatives to regulation play a vital role in reducing energy demand, these should be viewed as complements to efficiency regulation, rather than replacements. The regulatory approach has led to substantial cost and energy savings in the past, it has enjoyed bipartisan political support, and it targets products and behaviors that are difficult to address through other policy tools. Given the politics of climate change in the United States, which make federal carbon taxes or a cap-and-trade system infeasible, the regulatory option should be expanded, not abandoned.

The possible macroeconomic and sectoral impacts of carbon taxation on Turkey’s economy: A computable general equilibrium analyses

2018 ◽  
Vol 29 (5) ◽  
pp. 784-801
Author(s):  
Levent Aydın
Keyword(s):  
General Equilibrium ◽  
Carbon Emissions ◽  
Computable General Equilibrium ◽  
Carbon Tax ◽  
Model Simulation ◽  
Effective Means ◽  
Carbon Taxes ◽  
Rate Of Increase ◽  
Carbon Taxation ◽  
Per Capita

Although the idea of carbon tax was debated widely in the early 1970s, the first carbon taxes were imposed in some Northern European countries at the beginning of the 1990s. Since the Paris summit in 2015, there has been a growing interest in carbon tax that has begun to increase again. Although Turkey’s share of carbon emissions in terms of total global emissions is low, the rate of increase in emissions has increased in recent years and should be a cause for concern. Therefore, the aim of this paper is to analyze the possible effects of carbon taxes on Turkey’s economy by disaggregating the electricity sector a by using the computable general equilibrium model. Simulation results show that carbon taxation is a highly effective means to reduce carbon emissions. Despite all sectors being adversely affected, some low emission energy, textile, and other service sectors benefit from carbon pricing. The results also indicate macroeconomic costs of imposing a carbon tax at $7 per ton of carbon in terms of the decrease in GDP by 0.061% and associated with per capita utility of the representative household by 0.09% in scenario a. Imposition of successively higher carbon taxes in scenario b and scenario c results in 5.75, 12.02, and 16.95% reduction in carbon emissions at decreasing rate, respectively. However, these reductions are also accompanied by a decrease in real GDP and per capita utility from household expenditure, as macroeconomic costs, in scenarios a, b, and c at increasing rates.

scholarly journals Cost Optimization of a Zero-Emission Office Building

Buildings ◽  
2020 ◽  
Vol 10 (12) ◽  
pp. 222
Author(s):  
Nicola Lolli ◽  
Anne Gunnarshaug Lien ◽  
Øystein Rønneseth
Keyword(s):  
Energy Efficiency ◽  
Time Horizon ◽  
Net Present Value ◽  
Electricity Price ◽  
Office Building ◽  
Photovoltaic Panels ◽  
Energy Efficiency Measures ◽  
Efficiency Measures ◽  
Zero Emission ◽  
Business As Usual

The cost-effectiveness of energy efficiency measures meant to achieve a zero-emission office building is investigated and compared to business as usual energy efficiency measures. The laboratory for zero emission buildings, the ZEB Lab, located in Trondheim, Norway, is an office building designed and built to compensate its lifecycle emissions with the use of a large array of building-integrated photovoltaic panels, pursuing a zero-emissions ambition level. Three design alternatives are investigated by downgrading the building insulation level to the values recommended by the currently enforced Norwegian building code, the byggteknisk forskrift TEK17. A sensitivity analysis of the variation of the installed area of the photovoltaic panels is performed to evaluate if smaller areas give better cost performances. Net present values are calculated by using three scenarios of future increase of electricity price for a time horizon of 20 years. Results show that business as usual solutions give higher net present values. Optimized areas of the photovoltaic panels further increase the net present values of the business as usual solutions in the highest electricity price scenario. The zero-emission ambition level shows a higher net present value than that of the business as usual solutions for a time horizon of at least 36 years.

Optimal Dynamic Carbon Taxes in a Climate–Economy Model with Distortionary Fiscal Policy

2019 ◽  
Author(s):  
Lint Barrage
Keyword(s):  
Fiscal Policy ◽  
Optimal Taxation ◽  
Carbon Tax ◽  
Natural Capital ◽  
Income Taxes ◽  
Carbon Taxes ◽  
Capital Income ◽  
Economy Model ◽  
Lump Sum ◽  
Distortionary Taxes

Abstract How should carbon be taxed as a part of fiscal policy? The literature on optimal carbon pricing often abstracts from other taxes. However, when governments raise revenues with distortionary taxes, carbon levies have fiscal impacts. While they raise revenues directly, they may shrink the bases of other taxes (e.g. by decreasing employment). This article theoretically characterizes and then quantifies optimal carbon taxes in a dynamic general equilibrium climate–economy model with distortionary fiscal policy. First, this article establishes a novel theoretical relationship between the optimal taxation of carbon and of capital income. This link arises because carbon emissions destroy natural capital: they accumulate in the atmosphere and decrease future output. Consequently, this article shows how the standard logic against capital income taxes extends to distortions on environmental capital investments. Second, this article characterizes optimal climate policy in sub-optimal fiscal settings where income taxes are constrained to remain at their observed levels. Third, this article presents a detailed calibration that builds on the seminal DICE approach but adds features essential for a setting with distortionary taxes, such as a differentiation between climate change production impacts (e.g. on agriculture) and direct utility impacts (e.g. on biodiversity existence value). The central quantitative finding is that optimal carbon tax schedules are 8–24% lower when there are distortionary taxes, compared to the setting with lump-sum taxes considered in the literature.

scholarly journals A New Green Efficiency-Based Carbon Taxing Policy and Its Effects on a Production-Inventory System with Random Carbon Emissions and Green Investment

2020 ◽  
Vol 2020 ◽  
pp. 1-13
Author(s):  
Tapan Kumar Datta
Keyword(s):  
Carbon Tax ◽  
Profit Maximization ◽  
Inventory System ◽  
Environmental Benefits ◽  
Independent Random Variables ◽  
Model Parameters ◽  
Green Technologies ◽  
Numerical Examples ◽  
Production Inventory ◽  
Production Inventory System

In this study, the author proposes a new carbon taxing policy. This proposed carbon tax has two tax components. The first component is constant, and the second component depends on the green efficiency of production. The green efficiency of production is measured by the average amount of emissions per unit production in an assessment year. The green efficiency-based tax component can be reset every year. Lesser average emission rate indicates better green efficiency. The second component of this proposed carbon tax forces the firm to improve the green efficiency of production, which results in cleaner production. The author incorporates this new carbon tax policy in a production-inventory system with a price-sensitive demand rate. A rule is provided for the implementation of this new tax. Emissions during setup, production, and storage are considered as independent random variables. The firm has the opportunity of investing in green technologies to improve green efficiency. A profit maximization policy is adopted to solve the developed model. A solution algorithm is also provided. The model is illustrated by numerical examples with randomly generated model parameters. The results of numerical examples show the environmental benefits of the proposed carbon tax.

scholarly journals Exploring the Role of Carbon Taxation Policies on CO2 Emissions: Contextual Evidence from Tax Implementation and Non-Implementation European Countries

2020 ◽  
Vol 12 (20) ◽  
pp. 8680 ◽  
Author(s):  
Assaad Ghazouani ◽  
Wanjun Xia ◽  
Mehdi Ben Jebli ◽  
Umer Shahzad
Keyword(s):  
Co2 Emissions ◽  
Carbon Emissions ◽  
Carbon Tax ◽  
Developing Economies ◽  
Pollutant Emissions ◽  
Carbon Taxes ◽  
Tax Reforms ◽  
Policy Tool ◽  
Carbon Dioxide Co2

During the past decades, environmental related taxes, energy, and carbon taxes has been recommended by environmental scientists as a policy tool to mitigate pollutant emissions in developed and developing economies. Among developed nations, Denmark, Finland, Sweden, the Netherlands, and Norway were the first regions to adopt a tax on carbon dioxide (CO2) emissions and research into the impacts of carbon tax on carbon emissions bring significant implications. The prime objective and goal of this work is to explore the role of carbon tax reforms for environmental quality in European economies. This is probably the first study to conduct a comparative study in European context for carbon-tax implementation and non-implementation policies. To this end, the present study reports new conclusions and implications regarding the effectiveness of environmental regulations and policies for climate change and sustainability. In the present study, the authors exhaustively explore the impacts of the carbon-tax on the mitigation of CO2 emissions. Using the propensity score matching method, the results of the estimation of the different matching methods allow us to observe a positive and significant impact of the adoption of the carbon-tax on stimulating the reduction of carbon emissions.

Setting Targets and the Choice of Policy Instruments for Limiting CO2 Emissions1

1994 ◽  
Vol 5 (4) ◽  
pp. 327-341 ◽  
Author(s):  
Zhongxiang Zhang
Keyword(s):  
Policy Making ◽  
Carbon Tax ◽  
Policy Instruments ◽  
Economic Instruments ◽  
Carbon Taxes ◽  
Emission Permits ◽  
Control Approach ◽  
Energy Taxes ◽  
And Control ◽  
Tradeable Carbon Permits

Increasing concern in scientific and policy making circles about the possibility of global warming induced by the accumulation of CO2 and other GHGs in the atmosphere has advanced for consideration of policies to limit emissions of these GHGs. This paper gives an overview of policy instruments that might be used to control CO2 emissions, including command-and-control approach, energy taxes, carbon taxes, and tradeable carbon permits, with special attention paid to the economic instruments. It highlights the differences between energy taxes and carbon taxes in terms of target achievement. It presents some main findings arising from those studies on carbon taxes, with the emphasis placed on some aspects of domestic carbon tax design and incidence. The allocations of emission permits (or reimbursement of carbon tax revenues) are also discussed. Moreover, a comparison of carbon taxes with tradeable carbon permits is briefly made. This paper ends with some conclusions.

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