Targeted carbon tax reforms

King, Maia; Tarbush, Bassel; Teytelboym, Alexander

doi:10.1016/j.euroecorev.2019.08.001

Cited by 53 publications

(13 citation statements)

References 53 publications

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“…Despite significant growth in manufacturing production, the implied pollution tax in the USA doubled between 1990 and 2008, resulting in a 60% decrease in air pollutant emissions from the manufacturing sector (Shapiro and Walker 2018 ). Other papers, however, have shown that a carbon price does not succeed in reducing carbon emissions (King et al 2019 ; Klenert and Mattauch 2016 ). Various places, nations, and types of pollutants are affected by ETs in different ways (Lin and Li 2011 ).…”

Section: Literaturementioning

confidence: 99%

“…Several empirical research (Farooq et al 2019 ; King et al 2019 ) demonstrate that environmental taxes reduce emissions. He et al ( 2019 ) explore the dual rewards of recycling money from environmental taxes and validate previous research results, specifically, that carbon taxes are a successful strategy for lowering glasshouse gas emissions.…”

Section: Literaturementioning

confidence: 99%

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Can environmental taxes and green-energy offer carbon-free E7 economies? An empirical analysis in the framework of COP-26

Sarpong

Gyamfi

et al. 2023

Environ Sci Pollut Res

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The main cause of environmental degradation is carbon emissions, which puts environmental sustainability in jeopardy. This ecological worry, the obligation for which falls on all economic actors, has not gone undetected, and so in 2021, the Glasgow Climate Pact (COP: 26) was organized, with the primary aim of decreasing global carbon emissions. Because the Post-Glasgow Agreement goals represent a significant challenge to achieving ecological responsibility, pressure is applied to the participating nations. However, earlier literature lacked sufficient investigation of factors useful for the mitigation of carbon emissions in E7 (China, Turkey, India, Russia, Brazil, Indonesia, and Mexico) economies. Hence, we aim to fill this research vacuum by predicting the impact of clean fuels and cooking technology availability, renewable energy, and environmental taxes on E7 economies’ carbon emissions from 2000 to 2020, while taking urbanization and population expansion into account. Evaluation is done using four different cross-sectional dependence (CSD) methods, as well as unit root tests (CIPS and CADF), cointegration analysis (Westerlund and Kao), and the Driscoll-Kraay and quantile-on-quantile long-run factor estimate methods. The long-run analysis revealed from our findings that environmental tax, renewable energy, and access to clean fuels and technologies for cooking decrease carbon emission for the E7 economies. On the other hand, urbanization and population growth enhance emissions for the E7 economies. Finally, our results hold up under a variety of policy interpretations that would aid in reducing carbon emissions and their negative effects on the environment.

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Section: Literaturementioning

confidence: 99%

Section: Literaturementioning

confidence: 99%

Can environmental taxes and green-energy offer carbon-free E7 economies? An empirical analysis in the framework of COP-26

Sarpong

Gyamfi

et al. 2023

Environ Sci Pollut Res

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“…As a result of taxation, a variety of macroeconomic variables are affected . Many academics build national-level CGE models to find the best resource tax rate (King et al, 2019;Li L. et al, 2021;McAusland, 2021). China's dynamic macro CGE model, for example, was developed by Liu and Hu (2015), and it investigated the effect of carbon tax on the rural economy of China.…”

Section: Literature Reviewmentioning

confidence: 99%

Environmental Benefits From Carbon Tax in the Chinese Carbon Market: A Roadmap to Energy Efficiency in the Post-COVID-19 Era

2022

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Because of China’s global responsibilities to address climate change, the country has made a commitment to limiting the growth of future emissions using policy measures, such as funding mitigation research and regulating energy efficiency requirements directly. Extensions of these policies, such as the measures to improve energy efficiency, use of carbon taxes, and changes to the mix of electricity generation in the country, are also of interest to China. This article applied a computable general equilibrium (CGE) model to examine the effects of such energy efficiency and climate change policy options in the post-COVID-19 era in the China economy. The study findings show that even modest measures can have significant effects on emissions with marginal economic impacts, given the current level of development in the China electricity generation and transportation sectors. It is estimated that a 5 RMB per ton carbon tax will reduce emissions by 4.1% and GDP by 0.27%. Emissions drop by 8.2% and GDP drops by 0.54% when energy efficiency increases by 2% across the China economy, respectively. As a final result, a 5% shift away from burning coal would reduce emissions by 9.0%, while GDP would increase by 1.3%. It has been shown that even low carbon taxes can encourage a notable cleaner energy system.

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“…In our case, a tax has a larger indirect eect on an agent if she is connected to agents that also experience larger direct and indirect eects from it.8Acemoglu et al (2012) makes a similar argument in the case of productivity shocks propagating through the intersectoral network of an economy. See alsoKing et al (2019) for a discussion on carbon tax in presence of interdependencies between sectors.…”

mentioning

confidence: 99%

The social multiplier of environmental policy: Application to carbon taxation

Konc¹,

Savin

Bergh

2021

Journal of Environmental Economics and Management

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We analyze the eectiveness of environmental policy when consumers are subject to social inuence. To this end, we build a model of consumption decisions driven by sociallyembedded preferences formed under the inuence of peers in a social network. This setting gives rise to a social multiplier of environmental policy. In an application to climate change, we derive Pigouvian and target-achieving carbon taxes under sociallyembedded preferences. Under realistic assumptions the social multiplier is equal to 1.30, allowing to reduce the eective tax by 38%. We show that the multiplier depends on four factors: strength of social inuence, initial taste distribution, network topology and income distribution. The approach provides a basis for rigorously analyzing a transition to low-carbon lifestyles and identifying complementary information and network policies to maximize the eectiveness of carbon taxation.

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Targeted carbon tax reforms

Cited by 53 publications

References 53 publications

Can environmental taxes and green-energy offer carbon-free E7 economies? An empirical analysis in the framework of COP-26

Can environmental taxes and green-energy offer carbon-free E7 economies? An empirical analysis in the framework of COP-26

Environmental Benefits From Carbon Tax in the Chinese Carbon Market: A Roadmap to Energy Efficiency in the Post-COVID-19 Era

The social multiplier of environmental policy: Application to carbon taxation

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