scholarly journals Climate Policy and Innovation: A Quantitative Macroeconomic Analysis

2018 ◽  
Vol 10 (1) ◽  
pp. 90-118 ◽  
Author(s):  
Stephie Fried
Keyword(s):  
Carbon Tax ◽  
Oil Shocks ◽  
Energy Prices ◽  
Green Technologies ◽  
Dynamic General Equilibrium Model ◽  
Macroeconomic Analysis ◽  
Energy Innovation ◽  
Reduce Emissions ◽  
Quantitative Impact ◽  
Percent Decrease

A carbon tax can induce innovation in green technologies. I evaluate the quantitative impact of this channel in a dynamic, general equilibrium model with endogenous innovation in fossil, green, and nonenergy inputs. I discipline the parameters using evidence from historical oil shocks, after which both energy prices and energy innovation increased substantially. I find that a carbon tax induces large changes in innovation. This innovation response increases the effectiveness of the policy at reducing emissions, resulting in a 19.2 percent decrease in the size of the carbon tax required to reduce emissions by 30 percent in 20 years. (JEL H23, O31, Q41, Q48, Q54, Q55, Q58)

Improving the Environmental Outlook

2019 ◽  
pp. 255-270
Author(s):  
William G. Gale
Keyword(s):  
Climate Change ◽  
Carbon Dioxide ◽  
Carbon Tax ◽  
Energy Sources ◽  
Energy Prices ◽  
Full Cost ◽  
Oil And Natural Gas ◽  
Reduce Emissions ◽  
Effective Part

A carbon tax would burden emissions of carbon dioxide and other greenhouse gases that arise from the burning of coal, oil, and natural gas. When they are released in the atmosphere, these gases raise global temperatures and pollute in ways that threaten the environment and people’s livelihoods. Currently, businesses and people don’t need to consider how their decisions on what to make and what to buy will increase pollution and contribute to climate change because they don’t bear the full cost of their actions. A properly designed tax would make producers and consumers face those costs by raising energy prices, prompting them to use less, more efficient, and/or cleaner energy sources, which, in turn, would reduce emissions. For these reasons, the carbon tax is routinely considered an auspicious way to address global warming and would be an effective part of a package to resolve the long-term fiscal problem.

scholarly journals The Macro Effects of Climate Policy Uncertainty

2021 ◽  
Vol 2021 (015) ◽  
pp. 1-50
Author(s):  
Stephie Fried ◽  
◽  
Kevin Novan ◽  
William B. Peterman ◽  
◽  
...  
Keyword(s):  
Climate Policy ◽  
Equilibrium Model ◽  
Fossil Fuels ◽  
Carbon Tax ◽  
Policy Uncertainty ◽  
Dynamic General Equilibrium Model ◽  
Macroeconomic Impacts ◽  
Policy Risk ◽  
The Cost ◽  
The U.S

Uncertainty surrounding if and when the U.S. government will implement a federal climate policy introduces risk into the decision to invest in capital used in conjunction with fossil fuels. To quantify the macroeconomic impacts of this climate policy risk, we develop a dynamic, general equilibrium model that incorporates beliefs about future climate policy. We find that climate policy risk reduces carbon emissions by causing the capital stock to shrink and become relatively cleaner. Our results reveal, however, that a carbon tax could achieve the same reduction in emissions at less than half the cost.

scholarly journals Economic and ecological sustainability of the thermal building envelope: a cross-European perspective

2019 ◽  
Vol 282 ◽  
pp. 02003
Author(s):  
Tillman Gauer ◽  
Björn-Martin Kurzrock
Keyword(s):  
Carbon Tax ◽  
Residential Buildings ◽  
Ghg Emissions ◽  
Cost Savings ◽  
Heat Pumps ◽  
Building Envelope ◽  
Climate Agreements ◽  
Insulation Thickness ◽  
Electric Heat ◽  
Reduce Emissions

The building sector is crucial to reach the goals of common climate agreements. This paper contrasts three approaches to reduce emissions from typical residential buildings in Central Europe: the instalment of electric heat pumps (eHP), a thicker insulation of the thermal envelope and the encumbrance of a carbon tax. The use of less carbon intense fuels allows major savings of GHG emissions. An insulation thickness of 30 cm leads to GHG emission savings of 8% against a thickness of just 12 cm, while total cost savings (LCC) remain negligible. The introduction of a carbon tax of up to 250 €/t-CO2-eq. does not necessarily result in a reduction of GHG emissions due to increased costs of construction. It was further found that the focus of legal building regulations on heating demand is sufficient for now but needs to be revised as carbon intensities continue to decrease. The heating then reduces its share of the GHG emissions from 85 to 55% for typical residential buildings. The paper closes with a general expression of the lifecycle costs of a building which is dependent on the factors above.

Energy-Efficient Green Vehicle Routing Problem

2019 ◽  
Vol 12 (4) ◽  
pp. 27-41
Author(s):  
A. Sruthi ◽  
S.P. Anbuudayasankar ◽  
G. Jeyakumar
Keyword(s):  
Vehicle Routing ◽  
Vehicle Routing Problem ◽  
Carbon Tax ◽  
Ghg Emissions ◽  
Routing Problem ◽  
Energy Emission ◽  
Transportation Sector ◽  
Reduce Emissions ◽  
Conventional Models ◽  
Distance Minimization

The greenhouse gas emissions from the transportation sector are one of the major contributors to global warming today. Freight share to GHG emissions is likely to increase 2-fold by 2050. This makes it critical for CO2 emissions to be reduced through an optimized transportation strategy. Vehicle routing, when done efficiently, can reduce these emissions across countries. In this attempt, the traditional distance minimization objective of the vehicle routing problem has been replaced with an energy-emission-centric objective. A model is formulated taking energy and emissions into simultaneous consideration and a typical VRP problem has been evaluated using a genetic algorithm. The application of the proposed model is observed to reduce emissions significantly compared to conventional models. Considering the possibility of increase in carbon tax in future, energy-emission minimized routing would not only aid “green logistics,” but also reduce the environmental costs incurred.

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 Impacts of Investment Cost, Energy Prices and Carbon Tax on Promoting the Combined Cooling, Heating and Power (CCHP) System of an Amusement Park Resort in Shanghai

Energies ◽  
2020 ◽  
Vol 13 (16) ◽  
pp. 4252
Author(s):  
Liting Zhang ◽  
Weijun Gao ◽  
Yongwen Yang ◽  
Fanyue Qian
Keyword(s):  
Economic Performance ◽  
Carbon Dioxide Emissions ◽  
Carbon Tax ◽  
Energy Prices ◽  
Amusement Park ◽  
Energy Supply System ◽  
Market Competitiveness ◽  
Investment Cost ◽  
Combined Cooling ◽  
Investment Subsidy

Poor economic performance has limited the diffusion of the combined cooling, heating, and power (CCHP) system. Various factors influence the economic performance of the CCHP system. To analyze the impacts of these different factors and promote the CCHP system, this study evaluated its comprehensive performance through a multi-criteria method, using an amusement park resort in Shanghai as a research case. First, three CCHP systems with different penetration rates were presented and simulated in a transient simulation model for comparison. The economic and environmental performance of these different penetration CCHP systems were evaluated based on the dynamic payback period and carbon dioxide emissions. The impacts of investment cost, energy prices, investment subsidy and a carbon tax on the economic performance of the three systems were discussed, and a sensitivity analysis was used to compare these factors. The results show that the current subsidy can reduce the economic gap between the CCHP system and the conventional system, but it still needs to be increased by 1.71 times to achieve market competitiveness of the CCHP system with 100% penetration under the current investment cost and energy prices. In addition, the introduction of a carbon tax could accelerate the promotion of the CCHP system. When the carbon tax reaches 25 $/ton, the CCHP system becomes the best choice of energy supply system.

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.

Controlling carbon emissions in China

1999 ◽  
Vol 4 (4) ◽  
pp. 493-518 ◽  
Author(s):  
RICHARD F. GARBACCIO ◽  
MUN S. HO ◽  
DALE W. JORGENSON
Keyword(s):  
Carbon Emissions ◽  
Computable General Equilibrium ◽  
Capital Accumulation ◽  
Carbon Tax ◽  
Chinese Economy ◽  
Carbon Taxes ◽  
Dual Nature ◽  
Long Run ◽  
Changing Patterns ◽  
Reduce Emissions

We examine the use of carbon taxes to reduce emissions of CO2 in China. To do so, we develop a dynamic computable general equilibrium (CGE) model of the Chinese economy. In addition to accounting for the effects of population growth, capital accumulation, technological change, and changing patterns of demand, we also incorporate into our model elements of the dual nature of China's economy where both plan and market institutions exist side by side. We conduct simulations in which carbon emissions are reduced by 5, 10, and 15 per cent from our baseline. After initial declines, in all of our simulations GDP and consumption rapidly exceed baseline levels as the revenue neutral carbon tax serves to transfer income from consumers to producers and then into increased investment. Although subject to a number of caveats, we find potential for what is in some sense a 'double dividend', a decrease in emissions of CO2 and a long run increase in GDP and consumption.

scholarly journals Policy Watch: Corporate Average Fuel Economy Standards

1992 ◽  
Vol 6 (2) ◽  
pp. 171-180 ◽  
Author(s):  
Robert W Crandall
Keyword(s):  
Carbon Dioxide ◽  
Global Warming ◽  
Greenhouse Gas ◽  
Fuel Economy ◽  
Carbon Tax ◽  
Empirical Literature ◽  
Oil Shocks ◽  
Corporate Average Fuel Economy ◽  
The Past ◽  
Policy Watch

Initially, the minimum corporate average fuel economy (CAFE) program was promoted as a policy to reduce U.S. vulnerability to oil shocks. In the past two years, however, concern about global warming has resulted in new political pressures to raise CAFE once again to reduce the growth in U.S. emissions of carbon dioxide, a greenhouse gas. In this paper, I do not attempt to provide a detailed critique of these two objectives. I simply take the goals as given and draw upon estimates from the empirical literature to show that CAFE is a very costly instrument for achieving them. In addition, I compare the costs of meeting the same objectives through a fuel or carbon tax.

A MACROECONOMIC ANALYSIS OF GUEST WORKER PERMITS

2013 ◽  
Vol 19 (1) ◽  
pp. 189-220 ◽  
Author(s):  
Maroula Khraiche
Keyword(s):  
United States ◽  
Interest Rates ◽  
Wage Gap ◽  
Majority Vote ◽  
The United States ◽  
Point Of View ◽  
Native Population ◽  
Guest Worker ◽  
Dynamic General Equilibrium Model ◽  
Macroeconomic Analysis

This paper evaluates the optimality of a temporary worker permit policy from the point of view of the host country by using a two-country dynamic general equilibrium model, calibrated with data from the United States and Mexico. In the model, the decision to migrate and the corresponding decision to return are endogenous and take place within families that are heterogeneous in terms of human capital. After finding a migrant's optimal migration duration and the resulting shrinkage in the wage gap and change in interest rates, the paper derives the restriction on migrants' stay that maximizes natives' utility. It also derives the migrant length of stay that would pass a majority vote. When migration duration is restricted, the fraction of the native population made better off is maximized with a permit length of four years.

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