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It Is Fair To Act Now! The Distributional Impact Of A Carbon Tax Policy In Indonesia

Author

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  • Arief Anshory Yusuf

    () (Department of Economics, Padjadjaran University)

Abstract

It is widely acknowledged that the three dimensions of sustainable development economic, social, and environmental-are crucial, inseparable and inter- related. In many cases, however, their goals come into conflict with one another. This conflict often arises in the case of environment-related policies, the issue of climate change mitigation being no exception. Climate change mitigation policies to reduce carbon emissions from the energy sector by way of measures such as introducing a carbon tax have been widely known to be regressive i.e., the burden is borne more by lower income rather than higher income households, thereby making income distribution less equitable or fair. An expectation of such an adverse distributive effect may even prevent the policy from being implemented in the first place.

Suggested Citation

  • Arief Anshory Yusuf, 2008. "It Is Fair To Act Now! The Distributional Impact Of A Carbon Tax Policy In Indonesia," EEPSEA Policy Brief pb2008101, Economy and Environment Program for Southeast Asia (EEPSEA), revised Oct 2008.
  • Handle: RePEc:eep:pbrief:pb2008101
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    File URL: http://www.eepsea.org/pub/pb/12247481541Arief%27s_PB1.pdf
    File Function: First version, 2008
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    More about this item

    Keywords

    Carbon tax; Climate change; Indonesia;

    JEL classification:

    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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