Energy taxation and the double dividend effect in Taiwan's energy conservation policy—an empirical study using a computable general equilibrium model

Bor, Yunchang Jeffrey; Huang, Yophy

doi:10.1016/j.enpol.2009.06.006

Cited by 43 publications

(17 citation statements)

References 14 publications

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“…Fourth, general equilibrium models are an important application of the empirical CES study results, as highlighted by van der Werf [25], and are widely used to assess the impact of policy [116,117]. CGE models are the most popular, and are commonly CES-based [30,48,117,118] since this allows non-unity elasticity of substitution values, but may also include C-D modules [47,119,120]. Dynamic Stochastic General Equilibrium (DSGE) models are less common, but also use CES production functions [84,121].…”

Section: Wider Literature Searchmentioning

confidence: 99%

“…Third, the comparison between CES and C-D functions is an important study focus-whether for cross country comparisons [6], specific countries [81], sectors [105] or business cycles [84]. Fourth, general equilibrium models are an important application of the empirical CES study results, as highlighted by van der Werf [25], and are widely used to assess the impact of policy [116,117]. CGE models are the most popular, and are commonly CES-based [30,48,117,118] since this allows non-unity elasticity of substitution values, but may also include C-D modules [47,119,120].…”

Section: Wider Literature Searchmentioning

confidence: 99%

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Energy-Extended CES Aggregate Production: Current Aspects of Their Specification and Econometric Estimation

et al. 2017

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Capital-labour-energy Constant Elasticity of Substitution (CES) production functions and their estimated parameters now form a key part of energy-economy models which inform energy and emissions policy. However, the collation and guidance as to the specification and estimation choices involved with such energy-extended CES functions is disparate. This risks poorly specified and estimated CES functions, with knock-on implications for downstream energy-economic models and climate policy. In response, as a first step, this paper assembles in one place the major considerations involved in the empirical estimation of these CES functions. Discussions of the choices and their implications lead to recommendations for CES empiricists. The extensive bibliography allows those interested to dig deeper into any aspect of the CES parameter estimation process.

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Section: Wider Literature Searchmentioning

confidence: 99%

Section: Wider Literature Searchmentioning

confidence: 99%

Energy-Extended CES Aggregate Production: Current Aspects of Their Specification and Econometric Estimation

et al. 2017

View full text Add to dashboard Cite

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“…In the first dividend (also called the Pigouvian effect), the pollutants are reduced through economic incentives until the marginal external cost is equal to the pollution tax rate. In the second dividend (also called the revenue effect), the revenues collected by the environmental taxes are used to reduce other distortionary taxes so that to improve economic efficiency (Bor & Huang, ). Double dividend effect is categorized as “strong” form and “weak” form (Lawrence, 1995).…”

Section: Introductionmentioning

confidence: 99%

Impacts of Potential China's Environmental Protection Tax Reforms on Provincial Air Pollution Emissions and Economy

Liu

Yang

et al. 2020

Earth's Future

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China's environmental protection tax (EPT) has been implemented since the beginning of 2018 to control environmental issues (e.g., air pollution). The current EPT law indicates that tax revenues are given to provincial governments without return. However, tax revenue redistribution is the key to achieving a so-called "double dividend"; that is, an environmental tax could benefit both the environment and economic efficiency. Based on our previous analysis of the effectiveness of the current EPT, we further explore whether the double dividend could be achieved under different tax reforms based on the multiregion and multisectoral computable general equilibrium model. We find that recycling the EPT revenue to reduce household income tax (EPT_Int) is an efficient way to achieve the double dividend, and there is no double dividend if the EPT revenue is compensated by reducing enterprise income tax (EPT_Ent) or by investing in solar power (EPT_Sol). Combining EPT_Int and EPT_Sol could be a better approach if more air pollution emissions reductions are required to achieve the national reduction targets. At the provincial level, recycling the EPT revenues to reduce household income tax could offset the negative effect of environmental tax on the economy and achieve the double dividend in all provinces, especially the provinces with higher emission intensity, such as Shanxi, Hebei, Inner Mongolia, and Guizhou Provinces. This result shows that provinces with high emission intensity may further reduce air pollutant emissions during the post-EPT era.

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“…In the literature, there is extensive discussion concerning 7 the possible nature of this second dividend and the circumstances under which it exists 7 . Using applied general equilibrium models, Bor and Huang (2010), Bovenberg and Van der Ploeg (1998), Glomm et al (2008), Goulder (1995), Manresa and Sancho (2005), Hoel and Schneider (1997), all find evidence of the existence of the second dividend and in some cases even a triple dividend, which is associated with a decrease in poverty (Van Heerden et al 2006). External institutions are split into the Rest of UK (RUK) and Rest of the World (ROW).…”

mentioning

confidence: 99%

The economic and environmental impact of a carbon tax for Scotland: A computable general equilibrium analysis

Allan

Lecca

McGregor

et al. 2014

Ecological Economics

162

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Energy taxation and the double dividend effect in Taiwan's energy conservation policy—an empirical study using a computable general equilibrium model

Cited by 43 publications

References 14 publications

Energy-Extended CES Aggregate Production: Current Aspects of Their Specification and Econometric Estimation

Energy-Extended CES Aggregate Production: Current Aspects of Their Specification and Econometric Estimation

Impacts of Potential China's Environmental Protection Tax Reforms on Provincial Air Pollution Emissions and Economy

The economic and environmental impact of a carbon tax for Scotland: A computable general equilibrium analysis

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