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.

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.

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.

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 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 Simulating the Impact of Exogenous Food Price Shock on Agriculture and the Poor in Nigeria: Results from a Computable General Equilibrium Model

2012 ◽  
Vol 1 (2) ◽  
pp. 141
Author(s):  
Nkang Nkang ◽  
Bolarin Omonona ◽  
Suleiman Yusuf ◽  
Omobowale Oni
Keyword(s):  
General Equilibrium ◽  
Computable General Equilibrium ◽  
Import Price ◽  
Computable General Equilibrium Model ◽  
Living Standards ◽  
Rural South ◽  
Poverty Measures ◽  
Imported Food ◽  
Food Price Shock ◽  
The Impact

<p>Motivated by the recent global economic crisis, this paper simulated the impact of a rise in the price of imported food on agriculture and household poverty in Nigeria using a computable general equilibrium (CGE) model and the Foster, Greer and Thorbecke (FGT) class of decomposable poverty measures on the 2006 social accounting matrix (SAM) of Nigeria and the updated 2004 Nigeria Living Standards Survey (NLSS) data. Results show that a rise in import price of food increased domestic output of food, but reduced the domestic supply of other agricultural commodities as well as food and other agricultural composites. Furthermore, a rise in the import price of food increased poverty nationally and among all household groups, with rural-north households being the least affected by the shock, while their rural-south counterparts were the most affected. A major policy implication drawn from this paper is that high import prices in import competing sectors like agriculture tend to favour the sector but exacerbate poverty in households. Thus, efforts geared at addressing the impact of this shock should strive to balance welfare and efficiency issues.</p>

scholarly journals DAMPAK PELAKSANAAN ACFTA TERHADAP PERDAGANGAN INTERNASIONAL INDONESIA

2010 ◽  
Vol 13 (1) ◽  
Author(s):  
Ibrahim Ibrahim ◽  
Meily Ika Permata ◽  
Wahyu Ari Wibowo
Keyword(s):  
Comparative Advantage ◽  
Equilibrium Model ◽  
Computable General Equilibrium ◽  
Export Performance ◽  
Production Capacity ◽  
Trade Agreements ◽  
Computable General Equilibrium Model ◽  
Trade Creation ◽  
Asean Countries ◽  
The Impact

This study analyze the impact of the implementation of trade agreements within the framework of ACFTA on Indonesia»s export by using the GTAP model; a Multi Regional Computable General Equilibrium Model. Results shows that ACFTA provide opportunities for increased export from Indonesia; Indonesia obtained a net trade creation of international trade amounted to 2% and total exports growth increased by 1.8. However, the export performance of Indonesia in the period showed a decrease of competitiveness, as shown by the decline in share of Indonesian export commodities which are highly competitive and high intra-industry linkage. This paper also find that because the commodity structure of China and the non compeeting behavior of ASEAN countries including Indonesia (tends to complement), China is relatively easier to penetrate export to the ASEAN market. The entering products from China should provide opportunities for domestic producers to increase production capacity in ASEAN, due to wider choice of relatively cheap capital goods imports.JEL Classification: C67, F14, R12Keywords: ACFTA, trade, export, GTAP, Revealed Comparative Advantage, CGE.

Sign in / Sign up

Export Citation Format

Share Document