scholarly journals Sectoral Responses, Macroeconomic Impact and Household Welfare: GST Policy for Malaysia Economy

2020 ◽  
Vol 15 (1) ◽  
pp. 21-39
Author(s):  
Juliana Mohd Abdul Kadir ◽  
Mohamed Aslam Gulam Hassan ◽  
Zarinah Yusof
Keyword(s):  
Computable General Equilibrium ◽  
Government Expenditure ◽  
Computable General Equilibrium Model ◽  
Household Welfare ◽  
Government Revenue ◽  
Goods And Services ◽  
Income Groups ◽  
Negative Effect ◽  
Macroeconomic Impact ◽  
The Impact

Goods and services tax (GST) has been a controversial topic in Malaysia when it was first implemented. This study examines the impact of the GST on the Malaysian economy from three major perspectives. First, it investigates the consequent changes in sectoral responses, including output and prices for 15 main sectors. Second, the study presents the results of GST impact on seven macroeconomic variables, namely, consumption, investment, government revenue, government expenditure, export, import, and gross domestic product. Third, the results of household welfare are discussed. A computable general equilibrium model is utilized to simulate GST impact on the Malaysian economy, and a simple comparative static model is performed. The results prove that the higher the GST rate, the higher is the impact on each sector. The sectors most affected by GST are communication and ICT, and the electricity and gas sectors. By contrast, agriculture, forestry and logging, and the petroleum and natural gas sectors are the least affected. Consumption and investment receive the largest negative effect, whereas government revenue and expenditure show the largest positive effect. The study likewise finds that by lowering GST rate, the welfare loss was minimized and the higher-income groups were affected more than the lower-income groups.

scholarly journals Green Tax Reform in Australia in the Presence of Improved Environment-Induced Productivity Gain: Does It Offer Sustainable Recovery from a Post-COVID-19 Recession?

2020 ◽  
Vol 12 (16) ◽  
pp. 6514
Author(s):  
Maruf Rahman Maxim ◽  
Kerstin K. Zander
Keyword(s):  
Computable General Equilibrium ◽  
Tax Reform ◽  
Computable General Equilibrium Model ◽  
Payroll Tax ◽  
Green Tax Reform ◽  
Goods And Services ◽  
Novel Approach ◽  
Productivity Gain ◽  
Positive Externality ◽  
The Impact

Disasters and pandemics such as COVID-19 will change the world in many ways and the road to redemption from the ongoing economic distress may require a novel approach. This paper proposes a path towards economic recovery that keeps sustainability at the forefront. A computable general equilibrium model is used to simulate different green tax reform (GTR) policies for triple dividend (TD), consisting of lower emissions, higher GDP and higher employment. The GTR design consists of an energy tax coupled with one of three tax revenue recycle methods: (i) reduction of payroll tax, (ii) reduction of goods and services tax (GST) and (iii) a mixed-recycling approach. The paper also presents the impact of higher productivity on the tax reform simulations, which is a possible positive externality of lower emissions. The study is based on the Australian economy and the salient findings are twofold: (i) productivity gain in the GTR context improves the GDP and employment outcomes in all three different simulation scenarios and (ii) GST reduction has the highest TD potential, followed by reduction of payroll tax.

The Effects of Reducing the Motor Fuels Excise Tax on Agriculture in the United States

1997 ◽  
Vol 8 (1) ◽  
pp. 45-63
Author(s):  
Noel D. Uri ◽  
Roy Boyd
Keyword(s):  
United States ◽  
Diesel Fuel ◽  
Computable General Equilibrium ◽  
The United States ◽  
Computable General Equilibrium Model ◽  
Excise Tax ◽  
Goods And Services ◽  
Motor Fuels ◽  
The Government ◽  
The Impact

The analysis in this paper examines the impact of reducing the federal excise tax on gasoline and diesel fuel on the United States economy in general and the agricultural sectors in particular. The analytical approach used in the analysis consists of a computable general equilibrium model composed of fourteen producing sectors. fourteen consuming sectors, six household categories classified by income and a government. The effects of a 4.3 cents per gallon reduction in the excise tax on gasoline and diesel fuel in prices and quantities are examined. The results suggest. for example, a decrease in the tax would result in higher output by the producing sectors (by about $2.86 billion), a decline in output in the agricultural sectors of about 0.01 percent or $18.4 million. an expansion in the consumption of goods and services (by about $3.84 billion), and an increase in welfare (by about $3.59 billion). The government would realize a decrease in revenue of about $2.37 billion. When subjected to a sensitivity analysis. the results are reasonably robust with regard to the assumption of the values of the substitution elasticities.

scholarly journals On the Way to a Sustainable European Energy System: Setting Up an Integrated Assessment Toolbox with TIMES PanEU as the Key Component

Energies ◽  
2020 ◽  
Vol 13 (3) ◽  
pp. 707 ◽  
Author(s):  
Pinar Korkmaz ◽  
Roland Cunha Montenegro ◽  
Dorothea Schmid ◽  
Markus Blesl ◽  
Ulrich Fahl
Keyword(s):  
Computable General Equilibrium ◽  
Integrated Assessment ◽  
Decomposition Analysis ◽  
Energy System ◽  
Computable General Equilibrium Model ◽  
Assessment Model ◽  
Energy System Model ◽  
Early Action ◽  
Negative Effect ◽  
The Impact

The required decarbonization of the energy system is a complex task, with ambitious targets under the Paris Agreement, and related policy analysis should consider possible impacts on the economy and society. By coupling the energy system model TIMES PanEU with the impact assessment model EcoSense and the computable general equilibrium model NEWAGE, we present an integrated assessment toolbox for the European energy system capable of internalizing health damage costs of air pollution while simultaneously accounting for demand changes in energy services caused by economic feedback loops. The effects of each coupling step are investigated in a scenario analysis. Additionally, CO2 decomposition analysis is applied to identify the main drivers to decarbonize the energy system. Our results show that integrating externalities forces the system to take early action, which provides benefits on the societal level. Including macro-economic variables has a negative effect on energy service demands and generally reduces the need for structural change, which are still the main drivers of decarbonization. The tighter the models are coupled, the fewer the iterations needed and the lower the CO2 prices resulting from the carbon cap and trade system. In this aspect, an integrated view can provide valuable insights to determine efficient and effective decarbonization paths.

scholarly journals CO2 emissions, agricultural productivity and welfare in Ethiopia

2020 ◽  
Vol 12 (5) ◽  
pp. 687-704
Author(s):  
Zerayehu Sime Eshete ◽  
Dawit Woubishet Mulatu ◽  
Tsegaye Ginbo Gatiso
Keyword(s):  
Climate Change ◽  
Computable General Equilibrium ◽  
Agricultural Productivity ◽  
Climate Change Impacts ◽  
Computable General Equilibrium Model ◽  
Green Economy ◽  
Vulnerable Groups ◽  
Household Welfare ◽  
Content Type ◽  
The Impact

Purpose Climate change has become one of the most important development challenges worldwide. It affects various sectors, with agriculture the most vulnerable. In Ethiopia, climate change impacts are exacerbated due to the economy’s heavy dependence on agriculture. The Ethiopian Government has started to implement its climate-resilient green economy (CRGE) strategy and reduce CO2 emissions. Therefore, the purpose of this study is to examine the impact of CO2 emission on agricultural productivity and household welfare. Design/methodology/approach This study aims to fill these significant research and knowledge gaps using a recursive dynamic computable general equilibrium model to investigate CO2 emissions’ impact on agricultural performance and household welfare. Findings The results indicate that CO2 emissions negatively affect agricultural productivity and household welfare. Compared to the baseline, real agricultural gross domestic product is projected to be 4.5% lower in the 2020s under a no-CRGE scenario. Specifically, CO2 emissions lead to a decrease in the production of traded and non-traded crops, but not livestock. Emissions also worsen the welfare of all segments of households, where the most vulnerable groups are the rural-poor households. Originality/value The debate in the area is not derived from a rigorous analysis and holistic economy-wide approach. Therefore, the paper fills this gap and is original by value and examines these issues methodically.

The Impact of the Public Expenditure Cuts Policy on the Labor Market in Vietnam

2012 ◽  
pp. 22-46
Author(s):  
Huong Nguyen Thi Lan ◽  
Toan Pham Ngoc
Keyword(s):  
Labor Market ◽  
Computable General Equilibrium ◽  
Impact Evaluation ◽  
Public Expenditure ◽  
Computable General Equilibrium Model ◽  
Living Standard ◽  
Input Output ◽  
Policy Makers ◽  
The Public ◽  
The Impact

The purpose of this study is to evaluate the impact of public expenditure cuts on employment and income to support policies for the development of the labor mar- ket. Impact evaluation is of interest for policy makers as well as researchers. This paper presents a method – that is based on a Computable General Equilibrium model – to analyse the impact of the public expenditure cuts policy on employment and income in industries and occupations in Vietnam using macro data, the Input output table, 2006, 2008 and the 2010 Vietnam Household Living Standard Survey.

scholarly journals An Analysis of Interaction Effects of China–South Korea and China– Australia FTAs and the Expanding TPP

2016 ◽  
Vol 62 (4) ◽  
pp. 12-22
Author(s):  
Sun Yuhong ◽  
Mu Yifei ◽  
Jun Yang
Keyword(s):  
South Korea ◽  
Foreign Trade ◽  
Trade Policy ◽  
Free Trade ◽  
Computable General Equilibrium ◽  
Computable General Equilibrium Model ◽  
Economic Welfare ◽  
Positive Effects ◽  
Negative Effect ◽  
The U.S

Abstract On 5 October 2015, the Trans-Pacific Partnership Agreement (TPP) led by the U.S. was signed. Already, 12 countries1 have joined the agreement, but China has not. Thus, lots of research has focused on the negative effect of the TPP on China’s foreign trade. On the other hand, China is moving forward in its own efforts to establish bilateral free trade agreements (FTAs) and free trade zones. In June 2015, China-South Korea and China-Australia signed bilateral FTAs which went into effect in December 2015. Several questions were raised: Since South Korea and Australia are the major trade partners in the Pacific area and the bilateral FTAs will be effective before the TPP, will these FTAs’ positive effects on China’s foreign trade offset some of the negative effects of the TPP? If China and the U.S. adopted a competitive trade policy, which countries would benefit? If China and the U.S. adopted a cooperative trade policy, how would the trade value and economic welfare change? This paper simulates and analyses the mutual effects of China-South Korea and China-Australia FTAs and the enlarging TPP using the computable general equilibrium model. The major conclusions drawn suggest that China-South Korea and China-Australia FTAs will significantly offset the TPP’s negative effect on China’s foreign trade. If China is not included, the U.S. economic benefit from the TPP will be limited. The economic welfare for a country like Australia, which joined both the bilateral FTA and the TPP, will be increased the most. In the long run, China joining the TPP would be the most beneficial decision for its national interest. However, if the TPP cannot be approved by the US congress, the U.S.’s economic indicators and export would be decreasing sharply. China’s economy and export will benefit from FTAs.

scholarly journals Analysis of the Impact Fiscal Fundamentals on Unemployment in Nigeria. Imperatives for Covid 19, Era

2021 ◽  
Vol 04 (05) ◽  
Author(s):  
Patrick Ologbenla ◽  
Keyword(s):  
Unemployment Rate ◽  
Government Expenditure ◽  
Research Work ◽  
Youth Unemployment ◽  
Government Revenue ◽  
Increase Productivity ◽  
Employment Generation ◽  
The Impact ◽  
The Relationship

The study examined the impact of fiscal fundamental on unemployment rate in Nigeria from 1980 to 2020 focusing on COVID-19 imperatives. The research work embraces OLS estimating techniques to estimate the relationship between the variables. The result of the analysis revealed that government expenditure had positive and significant effect on the rate of unemployment. Also government revenue had a positive but insignificant impact on unemployment during. The implication of these findings for COVID-19 is that the narrative which is obtained from the analysis needs to be changed. Government revenue should be made to have significant impact on unemployment. The pandemic has led to a lot of job lost and the unemployment rate in Nigeria has risen by about 55% peaking at 36% youth unemployment rate as at last quarter of 2020. The study therefore, recommends that government should refocus expenditure and revenue in the country in such a way it will target development of infrastructural facilities so as to increase productivity and in turn facilitate employment generation.

scholarly journals The impact of tariff reduction on poverty in Zimbabwe, A CGE top-down approach

2015 ◽  
Vol 8 (1) ◽  
pp. 102-116 ◽  
Author(s):  
M Chitiga ◽  
R Mabugu
Keyword(s):  
Computable General Equilibrium ◽  
Policy Reform ◽  
Computable General Equilibrium Model ◽  
Tariff Reduction ◽  
Trade Liberalisation ◽  
Social Accounting Matrix ◽  
Micro Data ◽  
New Approach ◽  
Poor Households ◽  
The Impact

This paper uses a relatively new approach to quantify the effects of trade liberalisation on poverty.  It relies on the combination of a standard, social accounting, matrix-based, computable general equilibrium model and household micro-data. These two tools are used sequentially in order to simulate the impact of trade policy reform.  This framework enables the decomposition of the effects of trade liberalisation, which in turn allows for an analysis of alternative social policy packages.  The methodology is applied to Zimbabwe for illustration.  The results show that poverty is reduced by tariff reduction, although the poor households get the least benefits.

scholarly journals Economy-wide Implications of Low Carbon Electricity Based Mass Transport in Nepal

2014 ◽  
Vol 9 (1) ◽  
pp. 142-165
Author(s):  
Shree Raj Shakya
Keyword(s):  
Mass Transport ◽  
Computable General Equilibrium ◽  
Clean Energy ◽  
Computable General Equilibrium Model ◽  
Transport Systems ◽  
Transport Sector ◽  
Base Case ◽  
Household Welfare ◽  
Low Carbon

Development of low carbon electricity based mass transport is considered as one of the promising options for perusing the low carbon development (LCD) path in 21st century by the global communities. But long term economy-wide implications of such policy is very much country specifics citing their variations in the availability and tapping potential of indigenous clean energy resources, access to the clean technologies, affordability and acceptability of such technologies, and so on. This paper studies the economy-wide consequences of introducing different levels of electrified mass transport systems in Nepal on the long term basis. The study develops and uses a multi-sector, single region, recursive dynamic computable general equilibrium model of Nepal (Nepal-TRNSCGE) with technology level disaggregation in the transport and electricity sectors. The study indicates that under transport electrification scenarios consisting of 10% to 30% electrification of the transport sector as compared to the base case by 2050, the country would benefit economically with the value of cumulative undiscounted GDP increasing in the range of 2.6% to 3.1% and the value of cumulative undiscounted equivalent variation in income (household welfare) increasing in the range of 25.3% to 147.9% during 2005 to 2050. The policy would promote energy efficiency improvement and cleaner economic development with significant reduction in the energy intensity of GDP in the range of 3.1% to 4.1% and greenhouse gas intensity of GDP in the range of 4.7% to 7.1%. This highlights the potential role of low carbon electricity based transport in achieving the LCD path in the country. Introducing foreign direct investment would further increase GDP but reduce household welfare. DOI: http://dx.doi.org/10.3126/jie.v9i1.10679Journal of the Institute of Engineering, Vol. 9, No. 1, pp. 142–165

Sign in / Sign up

Export Citation Format

Share Document