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The Impact of Carbon Tax on GDP and Environment

Author

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  • Khaerul Azis, Mohammad
  • Widodo, Tri

Abstract

This study aims to examine the impact of imposing carbon taxes as an effort to reduce the effects of greenhouse gases. By using GTAP-E, this study found that the imposition of a vehicle carbon tax of 5 percent resulted in a reduction in the GDP rate of 0.01 percent and effectively reduced the level of carbon dioxide emissions by 0.06 percent.

Suggested Citation

  • Khaerul Azis, Mohammad & Widodo, Tri, 2019. "The Impact of Carbon Tax on GDP and Environment," MPRA Paper 91314, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:91314
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    File URL: https://mpra.ub.uni-muenchen.de/91314/1/MPRA_paper_91314.pdf
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    References listed on IDEAS

    as
    1. Berry, Audrey, 2019. "The distributional effects of a carbon tax and its impact on fuel poverty: A microsimulation study in the French context," Energy Policy, Elsevier, vol. 124(C), pages 81-94.
    2. Chen, Zi-yue & Nie, Pu-yan, 2016. "Effects of carbon tax on social welfare: A case study of China," Applied Energy, Elsevier, vol. 183(C), pages 1607-1615.
    3. Burfisher,Mary E., 2011. "Introduction to Computable General Equilibrium Models," Cambridge Books, Cambridge University Press, number 9780521766968, December.
    4. Wesseh, Presley K. & Lin, Boqiang, 2018. "Optimal carbon taxes for China and implications for power generation, welfare, and the environment," Energy Policy, Elsevier, vol. 118(C), pages 1-8.
    5. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
    6. Setiawan, Andri D. & Cuppen, Eefje, 2013. "Stakeholder perspectives on carbon capture and storage in Indonesia," Energy Policy, Elsevier, vol. 61(C), pages 1188-1199.
    7. Burfisher,Mary E., 2011. "Introduction to Computable General Equilibrium Models," Cambridge Books, Cambridge University Press, number 9780521139779, December.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Beata Zofia Filipiak & Dorota Wyszkowska, 2022. "Determinants of Reducing Greenhouse Gas Emissions in European Union Countries," Energies, MDPI, vol. 15(24), pages 1-24, December.

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    More about this item

    Keywords

    Carbon tax; GTAP;

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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