Carbon taxes and the double dividend hypothesis in a recursive-dynamic CGE model for Spain

Freire‐González, Jaume; Ho, Mun S.

doi:10.1080/09535314.2019.1568969

Cited by 51 publications

(9 citation statements)

References 32 publications

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“…New capital is putty‐clay type; that is, it can be destined for any sector but fixed after being allocated to the corresponding industry. New capital is allocated endogenously to balance capital returns across economic sectors, so sectoral capital accumulation rates are also endogenously determined based on previous investment levels (Diao & Thurlow, 2012; Freire‐González & Ho, 2019).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Funding schemes for infrastructure investment and poverty alleviation in Africa: Evidence from Guinea‐Bissau

Catéia

Bittencourt

Carvalho

et al. 2023

J of Intl Development

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This study examines the economic impacts of an infrastructure investment programme in Guinea‐Bissau for the period 2014–2030 using a dynamic computable general equilibrium model. Social accounting matrix (SAM) takes into account informal activities, and the model integrates funding schemes for infrastructure investment. We found that debt‐funded infrastructure investment will generate positive macro‐ and micro‐level externalities in terms of growth and well‐being outcomes across household groups in the urban and rural environments and contribute to inequality reduction. However, direct tax funding scheme is not the best economic development alternative for a country with a low per capita income.

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Section: Theoretical Frameworkmentioning

confidence: 99%

Funding schemes for infrastructure investment and poverty alleviation in Africa: Evidence from Guinea‐Bissau

Catéia

Bittencourt

Carvalho

et al. 2023

J of Intl Development

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“…On the other hand, Sanogo ( 2019 ) argues that fiscal decentralization affects the provision of public services, for example, health, water, and sanitation in rural areas. However, to control air pollution, Kamal et al ( 2021 ) suggest that entrepreneurs should be encouraged to adopt environmentally friendly technology through tax incentive policies while the carbon tax is found effective in reducing CO 2 emissions (Liu et al 2017 ; Freire-González and Ho 2019 ; Ojha et al 2020 ). However, the study of Halkos and Paizanos ( 2016 ) investigated the impact of both taxes and government expenditures on CO 2 emissions and concluded that deficit-financed government spending is more successful in improving the environment than deficit-financed taxes.…”

Section: Literature Reviewmentioning

confidence: 99%

Ensuring environmental inclusion in developing countries: the role of macroeconomic policies

Batool

Bhatti

Rehman

2022

Environ Sci Pollut Res

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In every society, there exist disadvantaged groups who have failed constantly to take part in the development of the economy and reap the benefits of economic growth as well. Along with economic and social factors, environmental factors are also accountable in making inclusion a challenge for the marginalized group. Contaminated drinking water, inappropriate sanitation systems, and pollution are the factors that affect health and wellbeing of the poor class by affecting their productivity. Thus, the lack of a clean environment leads the poor section towards further poverty and income inequality. Since the 2030 Agenda for Sustainable Development emphasizes three components to achieve sustainable development, namely economic, social, and environmental, this study inspects the role of macroeconomic policies in ensuring an inclusive clean environment in developing countries. Moreover, it considers the composite effect of fiscal policy and monetary policy on environmental inclusion by including interactive terms. This investigation uses FE-2SLS on a panel of 51 developing countries for the period of 1995–2019 to analyse the impact of macroeconomic policies on environmental inclusion. The study provides empirical evidence that fiscal and monetary policy has the potential to ensure an inclusive clean environment in developing countries. The findings imply that the macroeconomic policy actions depend on each other. Furthermore, governments in developing regions are required to cut nondeveloping expenditures and use expansionary monetary policy to promote green growth.

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“…in 2019 developed a dynamic CGE model with data from Spain, testing the impact of three different carbon taxes of €10, €20 and €30 per tonne of CO2, and for each tax studied four scenarios of revenue recycling reducing capital taxes, labour taxes, VAT and no revenue recycling. Their study expands on the double dividend of the carbon tax, finding that the double dividend of a low tax rate is significant and has a significant emission reduction effect, and that revenue recycling using carbon tax revenues to reduce existing tax distortions can significantly reduce the cost of imposing a carbon tax [12].…”

Section: The Double Dividend Of Carbon Taxmentioning

confidence: 99%

The International Practice of Carbon Tax and its Implications for China

Wu¹

2022

BCPBM

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With the emergence of environmental problems such as global warming, sea level rise and frequent climate extremes, countries around the world are now placing great emphasis on controlling carbon emissions, and China is also actively reforming its environmental tax by introducing a carbon tax to align with international standards. This paper summarises the experience of carbon taxation in Europe and Japan, and proposes policy recommendations in the light of the current economic development and actual situation in China, taking into account the experience of carbon taxation countries. This paper argues that China's carbon tax rate should develop in a stepwise manner, gradually increasing from low to high over time, and that the carbon tax should only be levied on the upstream production stage, but not on the downstream consumption stage for the time being, with the tax base based on the carbon content of energy products. In terms of carbon tax revenue, this paper argues that the "double dividend" effect of the carbon tax should be fully utilised to stimulate the economy, actively promote the rapid recovery and development of the affected industries in the post-epidemic era, and reduce the burden on households. In terms of tax relief, a certain degree of incentive should be given to enterprises that have achieved their emission reduction targets, and attention should be paid to the carbon tax balance of domestic industries in bilateral trade.

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Carbon taxes and the double dividend hypothesis in a recursive-dynamic CGE model for Spain

Cited by 51 publications

References 32 publications

Funding schemes for infrastructure investment and poverty alleviation in Africa: Evidence from Guinea‐Bissau

Funding schemes for infrastructure investment and poverty alleviation in Africa: Evidence from Guinea‐Bissau

Ensuring environmental inclusion in developing countries: the role of macroeconomic policies

The International Practice of Carbon Tax and its Implications for China

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