IDEAS home Printed from https://ideas.repec.org/p/ekd/009007/9175.html
   My bibliography  Save this paper

Analysis of Environmental Policy in Kazakhstan

Author

Listed:
  • Lyazzat Nugumanova

Abstract

Kazakhstan has one of the highest CO2 emissions per GDP in the world. Kazakhstan has taken a leadership role in the Central Asian region in terms of climate change policies and greener economy. Kazakhstan has ratified Kyoto Protocol in 2009. Kazakhstan has committed to reduce emissions by 15% below 1992 GHG levels by year 2020. In 2013 by decree of President of Kazakhstan a concept of Green Growth was adopted. Environmental regulations in Kazakhstan inherited from the planned economy need to be modified to correspond to current economic situation and climate change goals. Carbon tax and emissions trading are two of the main instruments to curb GHG emissions. There is an ongoing debate regarding which policy instrument is the most optimal towards reduction of emissions. The main difference between the two instruments are levels of uncertainty with regards to the carbon price and thus emissions reductions. Carbon tax provides more carbon price certainty, while emissions trading carbon prices are more volatile. Carbon tax mechanism is more easily to implement and operate, than ETS. Kazakhstan has opted and implemented emissions trading scheme in January 2013.. The ETS covers 55% of total CO2 emissions in Kazakhstan, and includes energy, mining and chemical industry. The average price of allowances was KZT 406 (US$2). Carbon tax in Kazakhstan would provide stability of carbon price, moreover carbon tax is easier to implement and monitor. The objective of this paper is using computable general equilibrium (CGE) model evaluate macroeconomic and environmental impacts of different carbon tax levels in Kazakhstan. Standard multiregion, multisector static CGE model, GTAP is used to simulate the impact of different carbon tax levels in Kazakhstan. GTAP is a standard CGE model based on assumptions of perfect competition and constant returns to scale. GTAP data base with latest version 9 is used in this study. The base year of the data base is 2010. The data base for the purpose of this study is aggregated to 11 sectors, out of which six are energy sectors, and six regions. Six regions are Kazakhstan, Russia, Belarus, China, EU and Rest of the World. Three sets of scenarios are simulated where carbon tax is priced at US$5, US$10 and US$20 per tCO2. Carbon tax is implemented in the CGE model as ad valorem equivalents. Carbon tax is implemented for all energy sectors and chemicals and heavy manufacturing sectors. Initial findings show macroeconomic effects of carbon tax in Kazakhstan. Preliminary findings allow to identify sectors which would benefit or loss from the implementation of carbon tax in Kazakhstan. It is expected that in all scenarios CO2 emissions will reduce, though magnitude of CO2 emissions reductions is expected to differ.

Suggested Citation

  • Lyazzat Nugumanova, 2016. "Analysis of Environmental Policy in Kazakhstan," EcoMod2016 9175, EcoMod.
    • Handle: RePEc:ekd:009007:9175
    as

    Download full text from publisher

    File URL: http://ecomod.net/system/files/Nugumanova%20_Ecomod%202016_0.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Burniaux, Jean-Marc & Truong Truong, 2002. "GTAP-E: An Energy-Environmental Version of the GTAP Model," GTAP Technical Papers 923, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    2. Burniaux, Jean-March & Truong, Truong P., 2002. "Gtap-E: An Energy-Environmental Version Of The Gtap Model," Technical Papers 28705, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. 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.
    4. Oecd, 2013. "Climate and Carbon: Aligning Prices and Policies," OECD Environment Policy Papers 1, OECD Publishing.
    5. Baranzini, Andrea & Goldemberg, Jose & Speck, Stefan, 2000. "A future for carbon taxes," Ecological Economics, Elsevier, vol. 32(3), pages 395-412, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dissanayake, Sumali & Mahadevan, Renuka & Asafu-Adjaye, John, 2018. "How efficient are market-based instruments in mitigating climate change in small emitter South Asian economies?," Economic Modelling, Elsevier, vol. 75(C), pages 169-180.
    2. Eboli, Fabio & Parrado, Ramiro & Roson, Roberto, 2010. "Climate-change feedback on economic growth: explorations with a dynamic general equilibrium model," Environment and Development Economics, Cambridge University Press, vol. 15(5), pages 515-533, October.
    3. Hertel, Thomas W. & Tyner, Wallace E. & Birur, Dileep K., 2008. "Biofuels for all? Understanding the Global Impacts of Multinational Mandates," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6526, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Alvaro Calzadilla & Katrin Rehdanz & Richard Betts & Pete Falloon & Andy Wiltshire & Richard Tol, 2013. "Climate change impacts on global agriculture," Climatic Change, Springer, vol. 120(1), pages 357-374, September.
    5. Britz, Wolfgang & Li, Jingwen & Shang, Linmei, 2021. "Combining large-scale sensitivity analysis in Computable General Equilibrium models with Machine Learning: An Example Application to policy supporting the bio-economy," Conference papers 333285, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    6. B. Henderson & A. Golub & D. Pambudi & T. Hertel & C. Godde & M. Herrero & O. Cacho & P. Gerber, 2018. "The power and pain of market-based carbon policies: a global application to greenhouse gases from ruminant livestock production," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 23(3), pages 349-369, March.
    7. Calzadilla, Alvaro & Rehdanz, Katrin & Tol, Richard S.J., 2008. "Water scarcity and the impact of improved irrigation management: A CGE analysis," Conference papers 331788, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    8. Parrado, Ramiro & De Cian, Enrica, 2014. "Technology spillovers embodied in international trade: Intertemporal, regional and sectoral effects in a global CGE framework," Energy Economics, Elsevier, vol. 41(C), pages 76-89.
    9. Francesco Bosello & Lorenza Campagnolo & Raffaello Cervigni & Fabio Eboli, 2018. "Climate Change and Adaptation: The Case of Nigerian Agriculture," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 69(4), pages 787-810, April.
    10. Banse, M. & Sorda, G., 2010. "Impact of Different Biofuel Policy Options on Agricultural Production and Land Use in Germany," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 45, March.
    11. Maria Berrittella & Katrin Rehdanz & Richard S.J. Tol, 2006. "The Economic Impact of the South-North Water Transfer Project in China: A Computable General Equilibrium Analysis," Working Papers 2006.154, Fondazione Eni Enrico Mattei.
    12. Michetti, Melania & Parrado, Ramiro, 2012. "Improving Land-use modelling within CGE to assess Forest-based Mitigation Potential and Costs," Climate Change and Sustainable Development 122862, Fondazione Eni Enrico Mattei (FEEM).
    13. Kerkelä, Leena, 2009. "Essays on globalization - Policies in trade, development, resources and climate change," Research Reports P50, VATT Institute for Economic Research.
    14. Jian Zhang & Denise Eby Konan, 2010. "The Sleeping Giant Awakes: Projecting Global Implications of China's Energy Consumption," Review of Development Economics, Wiley Blackwell, vol. 14(4), pages 750-767, November.
    15. Palatnik, Ruslana & Shechter, Mordechai, 2008. "Can Climate Change Mitigation Policy be Beneficial for the Israeli Economy? A Computable General Equilibrium Analysis," Conference papers 331792, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    16. Berrittella, Maria & Rehdanz, Katrin & Roson, Roberto & Tol, Richard S.J., 2007. "The Economic Impact of Water Taxes: A Computable General Equilibrium Analysis with an International Data Set," Conference papers 331655, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    17. Calzadilla, Alvaro & Zhu, Tingju & Rehdanz, Katrin & Tol, Richard S.J. & Ringler, Claudia, 2013. "Economywide impacts of climate change on agriculture in Sub-Saharan Africa," Ecological Economics, Elsevier, vol. 93(C), pages 150-165.
    18. De Souza Ferreira Filho, Joaquim Bento, 1999. "Trade Creation X Trade Diversion: Evidences from the GTAP Model in the Mercosur Integration Process," Conference papers 330889, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    19. Escobar, Neus & Haddad, Salwa & Britz, Wolfgang, 2018. "Economic and environmental implications of a target for bioplastics consumption: A CGE analysis," Conference papers 332940, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    20. Ludena, Carlos E. & Mejia, Carla, 2012. "Climate Change, Agricultural Productivity and its Impacts on the Food Industry: A General Equilibrium Analysis," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126851, International Association of Agricultural Economists.

    More about this item

    Keywords

    Kazakhstan; Energy and environmental policy; General equilibrium modeling (CGE);
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ekd:009007:9175. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Theresa Leary (email available below). General contact details of provider: https://edirc.repec.org/data/ecomoea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.