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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. Setiawan, Andri D. & Cuppen, Eefje, 2013. "Stakeholder perspectives on carbon capture and storage in Indonesia," Energy Policy, Elsevier, vol. 61(C), pages 1188-1199.
    2. 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.
    3. 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.
    4. Burfisher,Mary E., 2011. "Introduction to Computable General Equilibrium Models," Cambridge Books, Cambridge University Press, number 9780521766968, December.
    5. 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.
    6. 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.
    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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