scholarly journals Environmental Effects of Carbon Taxes: A Review and Case Study

2017 ◽  
Vol 4 (2) ◽  
pp. 7 ◽  
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.

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.

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.

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 Empirical Explanations of Carbon Mitigation during Periods of Economic Growth

2019 ◽  
Author(s):  
Ranran Wang ◽  
Valentina A. Assenova ◽  
Edgar Hertwich
Keyword(s):  
Economic Growth ◽  
Co2 Emissions ◽  
Economic Efficiency ◽  
Low Income ◽  
Empirical Relationship ◽  
Energy System ◽  
Emissions Reduction ◽  
Emissions Reductions ◽  
Reduce Emissions ◽  
Carbon Dioxide Co2

Prior research on the empirical relationship between anthropogenic carbon dioxide (CO2) emissions and economic growth, as measured by increases in gross domestic product (GDP), indicate that a 1% growth in GDP can lead to anything between an increase in emissions by 2.5% to a decline by 0.3%. Studies have paid little attention to independent mechanisms that reduce emissions. Statistical properties of the data undermine the estimation techniques used in many studies. To address these shortcomings, we used novel methods and panel data integrating emissions, economic, and energy-system characteristics across 70 economies over 1970-2013 to derive a universal GDP-emissions relationship and identify key emissions-reduction mechanisms. We found that, robust to a variety of estimation procedures, every 1% increase in GDP was associated with a 1% increase in CO2 emissions when controlling for other mechanisms. Emissions reductions were mainly driven by four mechanisms: (i) energy system decarbonization, (ii) increased economic efficiency, (iii) electrification, and (iv) deindustrialization. A 1% increase in these factors was associated with 0.2-1.8% reductions in CO2 emissions per year; together, these factors contributed to 18 petagrams of emissions reduction globally over 1970-2013. Decarbonization contributed most to emissions reductions in high-income economies, while economic efficiency and electrification contributed most to reductions in low-income economies.

Carbon Taxes

2021 ◽  
Author(s):  
Jorge H. García ◽  
Thomas Sterner
Keyword(s):  
Low Income ◽  
Social Cost ◽  
Carbon Tax ◽  
Carbon Price ◽  
Low Income Countries ◽  
Carbon Taxes ◽  
Social Cost Of Carbon ◽  
Carbon Pricing ◽  
Sectoral Differences ◽  
Carbon Taxation

Economists argue that carbon taxation (and more generally carbon pricing) is the single most powerful way to combat climate change. Since this is so controversial, we need to explain it better, and to be precise, the efficiency gains are largest when the costs of abatement are strongly heterogeneous. This is often—but not always—the case. When it is not, standards can fill much the same role. To internalize the climate externality, economic efficiency calls for a global carbon tax (or price) that is equal to the global damage or the so-called social cost of carbon. However, equity considerations as well as existing geographical and sectoral differences in the effectiveness of carbon taxation at reducing emissions, suggest earlier implementation of relatively high taxation levels in some sectors or countries—for instance, among richer economies followed by a more gradual phase-in among low-income countries. The number of national and subnational carbon pricing policies that have been implemented around the world during the first years following the Paris Agreement of 2015 is significant. By 2020, these programs covered 22% of global emissions with an average carbon price (weighted by the share of emissions covered) of USD15/tCO2 and a maximum price of USD120/tCO2. The share of emissions covered by carbon pricing as well as carbon prices themselves are expected to consistently rise throughout the decade 2021–2030 and beyond. Many experts agree that the social cost of carbon is in the range USD40–100/tCO2. Anti-climate lobbying, public opposition, and lack of understanding of the instrument are among the key challenges faced by carbon taxation. Opportunities for further expansion of carbon taxation lie in increased climate awareness, the communicative resources governments have to help citizens understand the logic behind carbon taxation, and earmarking of carbon tax revenues to address issues that are important to the public such as fairness.

Carbon Taxes in Theory and Practice

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.

scholarly journals Could revenue recycling make effective carbon taxation politically feasible?

2019 ◽  
Vol 5 (9) ◽  
pp. eaax3323 ◽  
Author(s):  
Liam F. Beiser-McGrath ◽  
Thomas Bernauer
Keyword(s):  
Carbon Tax ◽  
Public Support ◽  
The United States ◽  
Policy Instrument ◽  
Industrialized Countries ◽  
Carbon Taxes ◽  
Playing Field ◽  
Revenue Recycling ◽  
Carbon Taxation ◽  
Global Energy Supply

Carbon taxes are widely regarded as a potentially effective and economically efficient policy instrument for decarbonizing the global energy supply and thus limiting global warming. The main obstacle is political feasibility because of opposition from citizens and industry. Earmarking revenues from carbon taxation for spending that benefits citizens (i.e., revenue recycling) might help policy makers escape this political impasse. On the basis of choice experiments with representative samples of citizens in Germany and the United States, we examine whether revenue recycling could mitigate two key obstacles to achieving sufficient public support for carbon taxes: (i) declines in support as taxation levels increase and (ii) concerns over the international economic level playing field. For both countries, we find that revenue recycling could help achieve majority support for carbon tax levels of up to $50 to $70 per metric ton of carbon, but only if industrialized countries join forces and adopt similar carbon taxes.

Introducing Carbon Taxes in Russia: The Relevance of Tax-Interaction Effects

2014 ◽  
Vol 14 (3) ◽  
pp. 723-754 ◽  
Author(s):  
Anton Orlov ◽  
Harald Grethe
Keyword(s):  
Carbon Tax ◽  
International Mobility ◽  
Carbon Taxes ◽  
Welfare Gains ◽  
Lump Sum ◽  
Corrective Effect ◽  
Carbon Taxation ◽  
Distortionary Taxes ◽  
Tax Interaction ◽  
The Cost

Abstract The theoretical literature on the double-dividend concept is mainly focused on pre-existing distortionary taxes in the labour and capital markets; the relevance of interactions with other taxes is often neglected. Using an analytical model and a numerical general equilibrium model, we analyse the welfare effects of carbon taxes and their interaction with other taxes applied in Russia. We find that substituting carbon taxes for labour taxes in Russia can substantially reduce the cost of carbon taxation compared to returning carbon tax revenues to households in lump-sum form and can even result in welfare gains in Russia. In conclusion, introducing carbon taxes has an indirect corrective effect with respect to the distorting effect of export taxation on energy resources. Furthermore, welfare costs of carbon taxation can be significant under the assumption of perfect international mobility of capital. Nevertheless, the cost can be more than compensated in case of a high carbon trade price.

scholarly journals ENVIRONMENTAL BENEFITS FROM CO2 REDUCTION, DUE TO MODAL REPLACEMENT: CASE STUDY ON LIGHT RAIL VEHICLE IN BRASILIA CITY

2016 ◽  
Author(s):  
Paulo Henrique da Silva Costa ◽  
Leisy Mikaelly Alves Teixeira ◽  
Janaína Cardoso Pinheiro ◽  
Fabiana Serra Arruda ◽  
Augusto César de Mendonça Brasil
Keyword(s):  
Co2 Emissions ◽  
Co2 Reduction ◽  
Federal District ◽  
Environmental Benefits ◽  
Light Rail ◽  
Rail Vehicle ◽  
Private And Public ◽  
Carbon Dioxide Co2 ◽  
Reduction Of Co2

This work aims to measure the reduction of Carbon Dioxide (CO2) emissions in atmosphere by replacing the modal urban bus by Light Rail Vehicle (VLT). In order to accomplish this objective, a case study in Brasilia, Federal District, in the stretch of VLT which passes on Via W-3 South was conducted. The Theory of Externalities that discusses the right to ownership of private and public goods and responsibilities about the positive and negative externalities caused by the agents and individuals of society was used to support the analyses. It was used the Top-Down method, which allowed the calculation the direct emissions of CO2. The values obtained on the reduction of CO2 emissions were converted into values of carbon credits as a way to economically measure such reductions.  The results showed a significant reduction in CO2 emissions per year and consequent environmental benefit.DOI: http://dx.doi.org/10.4995/CIT2016.2016.3480 

scholarly journals Using Cartograms for Visualizing extended Floating Car Data (xFCD)

2019 ◽  
Vol 2 ◽  
pp. 1-7
Author(s):  
Christian Röger ◽  
Jukka M. Krisp
Keyword(s):  
Carbon Dioxide ◽  
Spatial Distribution ◽  
Co2 Emissions ◽  
Research Area ◽  
Floating Car Data ◽  
Spatial Subdivision ◽  
Carbon Dioxide Co2

<p><strong>Abstract.</strong> This study assesses the usefulness of cartograms when visualizing extended Floating Car Data (xFCD). Cartograms deform regions in a map proportionally to assigned values. We apply this method for visualizing highresolution extended Floating Car Data (xFCD). Elaborating on this, we perform a case study in Mönchengladbach, Germany using 1.8 Million record points containing information about carbon dioxide (CO2) emissions based on an xFCD dataset. Utilizing a diffusion-based approach, we compute cartograms. Findings indicate a good suitability for identifying areas with a higher (or lower) average emission of CO2. We provide a documented workflow to compute cartograms based on parameters from an extended floating car dataset. The quality and spatial distribution of the basic dataset turns out to be important. Choosing the correct spatial subdivision of the research area as a basis for deforming areas is significant as it strongly influences the visual output.</p>

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