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

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.

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Environmental Effects of Carbon Taxes: A Review and Case Study

World Journal of Social Science ◽

10.5430/wjss.v4n2p7 ◽

2017 ◽

Vol 4 (2) ◽

pp. 7 ◽

Cited By ~ 2

Author(s):

Zheng Li ◽

Junjing Zhao

Keyword(s):

Co2 Emissions ◽

Environmental Effects ◽

Carbon Tax ◽

Carbon Taxes ◽

Additional Costs ◽

Effective Instrument ◽

Carbon Taxation ◽

Reduce Emissions ◽

Carbon Dioxide Co2

A carbon tax imposes additional costs on emission-intensive fuels so as to reduce emissions. The primary aim of this paper is to investigate the environmental effects of carbon taxes. First, this paper reviews existing studies which evaluated the effects of carbon taxes on carbon dioxide (CO2) emissions for different countries. The review shows that carbon taxation is an effective instrument to reduce CO2 emissions. Then, Transportation and Environment Strategy Impact Simulator (TRESIS) is used to assess the impacts of a carbon tax on car use and CO2 emissions in the Sydney metropolitan area, and results shows that it would reduce CO2 emissions by 3.7 percent and reduce car kilometres driven by 3.5 percent in 2017. Its potential economic impact in terms of revenue generated is also presented in this paper.

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

Energy & Environment ◽

10.1177/0958305x18759920 ◽

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.

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Steering the Climate System: Using Inertia to Lower the Cost of Policy

The American Economic Review ◽

10.1257/aer.20150986 ◽

2017 ◽

Vol 107 (10) ◽

pp. 2947-2957 ◽

Cited By ~ 18

Author(s):

Derek Lemoine ◽

Ivan Rudik

Keyword(s):

Carbon Emissions ◽

Carbon Tax ◽

Economic Models ◽

Climate System ◽

Carbon Taxes ◽

Near Term ◽

The Cost

Common views hold that the efficient way to limit warming to a chosen level is to price carbon emissions at a rate that increases exponentially. We show that this Hotelling tax on carbon emissions is actually inefficient. The least-cost policy path takes advantage of the climate system's inertia to delay reducing emissions and allow greater cumulative emissions. The efficient carbon tax follows an inverse-U-shaped path and grows more slowly than the Hotelling tax. Economic models that assume exponentially increasing carbon taxes are overestimating the cost of limiting warming, overestimating the efficient near-term carbon tax, and overvaluing technologies that mature sooner. (JEL H23, Q54, Q58)

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Controlling carbon emissions in China

Environment and Development Economics ◽

10.1017/s1355770x99000303 ◽

1999 ◽

Vol 4 (4) ◽

pp. 493-518 ◽

Cited By ~ 53

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.

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Improved ELMv1-ECA simulations of zero-curtain periods and cold-season CH<sub>4</sub> and CO<sub>2</sub> emissions at Alaskan Arctic tundra sites

The Cryosphere ◽

10.5194/tc-15-5281-2021 ◽

2021 ◽

Vol 15 (12) ◽

pp. 5281-5307

Author(s):

Jing Tao ◽

Qing Zhu ◽

William J. Riley ◽

Rebecca B. Neumann

Keyword(s):

Co2 Emissions ◽

Carbon Emissions ◽

Field Measurements ◽

Arctic Tundra ◽

Absolute Error ◽

Cold Season ◽

Earth System ◽

Environmental Controls ◽

Soil Temperatures ◽

Carbon Dioxide Co2

Abstract. Field measurements have shown that cold-season methane (CH4) and carbon dioxide (CO2) emissions contribute a substantial portion to the annual net carbon emissions in permafrost regions. However, most earth system land models do not accurately reproduce cold-season CH4 and CO2 emissions, especially over the shoulder (i.e., thawing and freezing) seasons. Here we use the Energy Exascale Earth System Model (E3SM) land model version 1 (ELMv1-ECA) to tackle this challenge and fill the knowledge gap of how cold-season CH4 and CO2 emissions contribute to the annual totals at Alaska Arctic tundra sites. Specifically, we improved the ELMv1-ECA soil water phase-change scheme, environmental controls on microbial activity, and the methane module. Results demonstrate that both soil temperature and the duration of zero-curtain periods (i.e., the fall period when soil temperatures linger around 0 ∘C) simulated by the updated ELMv1-ECA were greatly improved; e.g., the mean absolute error (MAE) in zero-curtain durations at 12 cm depth was reduced by 62 % on average. Furthermore, the MAEs of simulated cold-season carbon emissions at three tundra sites were improved by 72 % and 70 % on average for CH4 and CO2, respectively. Overall, CH4 emitted during the early cold season (September and October), which often includes most of the zero-curtain period in Arctic tundra, accounted for more than 50 % of the total emissions throughout the entire cold season (September to May) in the model, compared with around 49.4 % (43 %–58 %) in observations. From 1950 to 2017, both CO2 emissions during the zero-curtain period and during the entire cold season showed increasing trends, for example, of 0.17 and 0.36 gC m−2 yr−1 at Atqasuk. This study highlights the importance of zero-curtain periods in facilitating cold-season CH4 and CO2 emissions from tundra ecosystems.

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Carbon Taxes in Theory and Practice

Annual Review of Resource Economics ◽

10.1146/annurev-resource-102519-113630 ◽

2021 ◽

Vol 13 (1) ◽

Author(s):

Gilbert E. Metcalf

Keyword(s):

Carbon Tax ◽

Policy Instruments ◽

Theory And Practice ◽

Empirical Literature ◽

Annual Review ◽

Publication Date ◽

Carbon Taxes ◽

Reduce Emissions ◽

Hybrid Carbon

As of 2020, carbon taxes were in effect in 30 jurisdictions around the world. This article provides a theoretical overview of carbon taxes along with some empirical evidence on the macroeconomic impacts of existing taxes, including emission reductions. It compares and contrasts carbon taxes with other policy instruments to reduce emissions. It also highlights issues that have recently attracted the attention of researchers on which additional research would be beneficial. Those include ( a) the role of border adjustments in a unilaterally imposed carbon tax, ( b) hybrid carbon tax systems that increase the likelihood of hitting desired emission reduction targets, ( c) the optimal price path for a carbon tax, and ( d) the growing empirical literature on the economic impact of carbon taxes. Expected final online publication date for the Annual Review of Resource Economics, Volume 13 is October 2021. Please see http://www.annualreviews.org/page/journal/pubdates for revised estimates.

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Decarbonizing the Chilean Electric Power System: A Prospective Analysis of Alternative Carbon Emissions Policies

Energies ◽

10.3390/en14164768 ◽

2021 ◽

Vol 14 (16) ◽

pp. 4768

Author(s):

Frédéric Babonneau ◽

Javiera Barrera ◽

Javiera Toledo

Keyword(s):

Power System ◽

Electric Power ◽

Co2 Emissions ◽

Carbon Emissions ◽

Carbon Capture ◽

Carbon Tax ◽

Carbon Capture And Storage ◽

Electric Power System ◽

Total System ◽

Cost Efficient

In this paper, we investigate potential pathways for achieving deep reductions in CO2 emissions by 2050 in the Chilean electric power system. We simulate the evolution of the power system using a long-term planning model for policy analysis that identifies investments and operation strategies to meet demand and CO2 emissions reductions at the lowest possible cost. The model considers a simplified representation of the main transmission network and representative days to simulate operations considering the variability of demand and renewable resources at different geographical locations. We perform a scenario analysis assuming different ambitious renewable energy and emission reduction targets by 2050. As observed in other studies, we show that the incremental cost of reducing CO2 emissions without carbon capture or offset alternatives increases significantly as the system approaches zero emissions. Indeed, the carbon tax is multiplied by a factor of 4 to eliminate the last Mt of CO2 emissions, i.e., from 2000 to almost 8500 USD/tCO2 in 2050. This result highlights the importance of implementing technology-neutral mechanisms that help investors identify the most cost-efficient actions to reduce CO2 emissions. Our analysis shows that Carbon Capture and Storage could permit to divide by more than two the total system cost of a 100% renewable scenario. Furthermore, it also illustrates the importance of implementing economy-wide carbon emissions policies that ensure that the incremental costs to reduce CO2 emissions are roughly similar across different sectors of the economy.

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A Theoretical Inquiry of the Offset Mechanism in Mitigating Global Warming: Economic Welfare Implications of the Clean Development Mechanism Investment

Environment and Natural Resources Research ◽

10.5539/enrr.v7n1p76 ◽

2017 ◽

Vol 7 (1) ◽

pp. 76

Author(s):

Morio Kuninori ◽

Masayuki Otaki

Keyword(s):

Global Warming ◽

Co2 Emissions ◽

Developing Economies ◽

Economic Welfare ◽

Theoretical Inquiry ◽

Advanced Economies ◽

Welfare Implications ◽

Trading Scheme ◽

Carbon Dioxide Co2 ◽

The Right

This study attentively examines the role of the offset mechanism like the Clean Develop Mechanism (CDM) in mitigating global warming problems and considers its economic welfare implications in a theoretical offset environment. The CDM is a kind of offset trading scheme of carbon dioxide (CO2) emissions between advanced and developing economies. Formulating the essence of the offset market into a simple model, we interpret the right to trade CO2 emissions at an ideal price as rewards to advanced economies for investing in more CO2 saving technologies and/or factories in developing economies. Our model shows that under some conditions the CDM can succeed in suppressing CO2 emissions and become a second-best measure to mitigate global warming. Nevertheless, we also clarify that the prices of carbon offset in advanced economies are not generally sustainable without the help of the outside agencies such as the governments. This fact suggests that offset mechanism like the CDM incurs an additional burden, such as taxes to advanced economies for preserving the scheme, although the resultant transfer evidently equalizes the international income distribution.

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The role of surface oxidation and Fe-Ni synergy in Fe-Ni-S catalysts for CO2 hydrogenation

Faraday Discussions ◽

10.1039/d0fd00137f ◽

2021 ◽

Author(s):

Claire Mitchell ◽

David Santos-Carballal ◽

Andrew Michael Beale ◽

Wilm Jones ◽

David John Morgan ◽

...

Keyword(s):

Climate Change ◽

Carbon Dioxide ◽

Co2 Emissions ◽

Surface Oxidation ◽

Co2 Hydrogenation ◽

Carbon Dioxide Co2

Increasing carbon dioxide (CO2) emissions, resulting in climate change, have driven the motivation to achieve the effective and sustainable conversion of CO2 into useful chemicals and fuels. Taking inspiration from...

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The role of services in the environmental Kuznets curve

Economics and Business Letters ◽

10.17811/ebl.9.4.2020.326-333 ◽

2020 ◽

Vol 9 (4) ◽

pp. 326-333

Author(s):

Manuel Cantavella

Keyword(s):

Co2 Emissions ◽

Environmental Kuznets Curve ◽

Kuznets Curve ◽

Economic Activities ◽

Services Sector ◽

Distributed Lag ◽

Autoregressive Distributed Lag ◽

Curve Model ◽

Carbon Dioxide Co2

This paper examines the influence of services activity in the environmental Kuznets curve (EKC) model regarding carbon dioxide (CO2) emissions. The analysis is applied for Spain during the period 1940-2014. It compares the standard environmental Kuznets curve model and its modification by isolating the evolution of services effect. The results through the autoregressive distributed-lag (ARDL) estimation strategy confirm that even though all economic activities tend to be more and more sustainable, it is the evolution of services sector that becomes fundamental in the reduction of per capita CO2 emissions.

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