Distributional effects of emission pricing in a carbon-intensive economy: The case of Poland

Antosiewicz, Marek; Fuentes, J. Rodrigo; Lewandowski, Piotr; Witajewski-Baltvilks, Jan

doi:10.1016/j.enpol.2021.112678

Cited by 18 publications

(8 citation statements)

References 29 publications

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“…The investigation into a carbon tax continues to this day. Studies have investigated the impact of carbon taxes in countries including Spain, South Africa, China, India, and the United Kingdom, among others, and the results are comparable to those found in the aforementioned studies (Runst and Thonipara, 2020;Antosiewicz et al, 2022).…”

Section: Literature Reviewsupporting

confidence: 66%

RETRACTED: Carbon pricing and environmental response: A way forward for China’s carbon and energy market

Wang

Zhou

Anis

et al. 2022

Front. Environ. Sci.

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Addressing the conflict between fossil fuel exploitation, usage, and greenhouse gas emissions is a top priority for China’s low-carbon socioeconomic development. Scalable Axisymmetric Matrix “a computerized general equilibrium model” is used to assess the impact of carbon tax policies on energy usage, carbon pollution, and macroeconomic drivers at reduction levels of 10%, 20%, and 30% of emissions. In the meantime, we examine the impact of various carbon tax recycling schemes in line with the tax neutrality concept. Although the carbon tax successfully reduces carbon emissions, we conclude that it will have a detrimental effect on the economy and social well-being. To cope with China’s increasing pollution emissions and ecological imbalances, the Chinese government promulgated the environmental protection tax law of the people’s Republic of China, which was officially implemented in 2018. Although carbon dioxide is not included in the Taxable Pollutants and Single Quantity Table attached to this law, China has almost reached a consensus on taxing carbon emissions. In 2021, the State Council of China issued the opinions on completely, accurately, and comprehensively implementing the new development concept and doing a good job in carbon peak and carbon neutralization, which made a comprehensive deployment to achieve the “double carbon” goal and improved the carbon tax policy and legal system, which is an essential part of it. Therefore, based on fiscal neutrality, an effective carbon tax recycling scheme can mitigate the adverse effects of its adoption. However, due to the current development in China’s energy-generating and transportation sectors, even minor steps can have huge effects on emissions with marginal economic implications.

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Section: Literature Reviewsupporting

confidence: 66%

RETRACTED: Carbon pricing and environmental response: A way forward for China’s carbon and energy market

Wang

Zhou

Anis

et al. 2022

Front. Environ. Sci.

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show abstract

“…Occasionally, distributional impact analyses took the form of 'what if' simulations of given policy scenarios assuming alternative consumption patterns. For example, Alfredsson (2004 [83]) utilised a microsimulation model to undertake a life-cycle analysis of 'greener' consumption patterns that incorporates energy use and CO2 emissions connected with the entire production process, up to the point of purchase.…”

Section: Box 1 Assessing the Distributive Impact Of Environmental Pol...mentioning

confidence: 99%

Who pays for higher carbon prices?

2023

OECD Social, Employment and Migration Working Papers

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Unclassified OECD Social, Employment and Migration Working Paperswww.oecd.org/els/workingpapers OECD Working Papers should not be reported as representing the official views of the OECD or of its member countries. The opinions expressed and arguments employed are those of the author(s).Working Papers describe preliminary results or research in progress by the author(s) and are published to stimulate discussion on a broad range of issues on which the OECD works. Comments on Working

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“…The CO 2 emission reduction levels are different among countries, depending on economic characteristics and structures, tax rate and tax base. For example, the CO 2 emission reduction level would be very small, from 0.11% to 0.27% in Japan with a carbon price of 3,000 yen/t CO 2e (Kawase et al, 2003), whereas carbon emissions would decline sharply by around 12-28% in Ireland, Australia and Poland under the carbon tax policies (Wissema and Dellink, 2007;Meng et al, 2013;Antosiewicz et al, 2022). In China, Cao et al (2021) compared carbon emission reduction due to the carbon tax among models and found that carbon emission mitigation was shown in all cases.…”

Section: Literature Reviewmentioning

confidence: 99%

Simulating the environmental and economic effects of a carbon tax in Vietnam: a static computable general equilibrium analysis

Nguyen

2023

MEQ

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PurposeA carbon tax has been widely discussed and implemented in developed countries to mitigate carbon emissions, but this measure is still quite new in developing countries. Recently, the ambition of Vietnam's government in mitigating emissions has been mentioned in international commitments. To achieve these targets, the government is making efforts to seek and implement mitigation measures in the country. While carbon pricing was introduced in Vietnam, there is no study simulating the effects of a carbon tax in the country. This study simulates the environmental and economic effects of a carbon tax and then proposes appropriate policies in Vietnam.Design/methodology/approachThis study investigates the impact on the Vietnamese economy within the static computable general equilibrium (CGE) framework. Compared with previous models, the proposed model in this paper is a fairly standard CGE approach that tries to picture the economic system of Vietnam. In addition, a carbon tax on output will be modeled in this framework. This carbon tax mechanism is more flexible and direct when a carbon tax is based on direct emissions by industry level and the industry's carbon intensity. The paper decomposes the Vietnamese economy into 18 different production sectors, based on the different emission levels of CO2. The CGE model makes possible to examine the impact of a carbon tax on the whole economy through all possible channels and to differentiate a separate carbon tax among different production sectors. The impact of a differentiated carbon tax is explored not only at the macroeconomic level but also at each different industrial level. Another feature of this paper is to investigate the impact of reallocation revenue from the carbon tax.FindingsThis paper has found that by designing carbon tax scenarios at different carbon prices ($1/tCO2, $5/tCO2, $10/tCO2) with different targeted industries, this study shows that higher carbon prices cause greater damage to GDP and welfare, but also better reductions in emissions. In addition, a carbon tax on the energy sectors results in milder economic and welfare damage but less emission reduction than when levying on all sectors. At the sectoral level, a carbon tax might cause sectoral restruction. Interestingly, the electricity sector is the most affected and also is the main contributor to reducing emissions in Vietnam. Finally, the study also shows that reallocation policies of new revenue from the carbon tax would reduce the economic damage caused by carbon taxes, and in many cases promote GDP and welfare. However, these policies reduce the environmentally positive impact of the carbon tax and even induce an increase in emissions in some cases.Originality/valueThis paper studies the pure impacts of a carbon tax, it also simulates the impact of several recycling policies where the increased tax revenue is incorporated. Thereby, this research supports to design and implement carbon tax policies in Vietnam. This paper also would contribute to the literature an example of the adoption of the carbon tax in a developing country, and it could be a lesson for others with similar conditions. Compared with previous models, the proposed model in this paper is a fairly standard CGE approach that tries to picture the economic system of Vietnam. In addition, a more flexible carbon tax mechanism is proposed to improve adequate coverage of emission resources.

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Distributional effects of emission pricing in a carbon-intensive economy: The case of Poland

Cited by 18 publications

References 29 publications

RETRACTED: Carbon pricing and environmental response: A way forward for China’s carbon and energy market

RETRACTED: Carbon pricing and environmental response: A way forward for China’s carbon and energy market

Who pays for higher carbon prices?

Simulating the environmental and economic effects of a carbon tax in Vietnam: a static computable general equilibrium analysis

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