IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/91317.html
   My bibliography  Save this paper

Indonesia's Commitment to Reducing GHG and Its Impact on the Indonesian Economy: CGE Approach

Author

Listed:
  • Dasih, Kuntari
  • Widodo, Tri

Abstract

To achieve the carbon emission target in Indonesia in 2030, what trade offs will be carried out if viewed from an economic perspective such as GDP, energy consumption? This study employs the CGE model to see the impact of imposing carbon tax on GDP and GHG emissions in Indonesia. Five scenarios have been applied to gauge the linkage between those factors. The main finding in this study is that carbon tax can reduce emissions in large numbers in Indonesia thus that carbon tax can be used as an effective emission control instrument. However, what needs to be concerned is the impact of carbon tax on decreasing GDP. It is different from Singapore where the impact of carbon tax almost does not affect GDP, in Indonesia even though the tax is applied in small amounts but has a significant effect on changes in GDP.

Suggested Citation

  • Dasih, Kuntari & Widodo, Tri, 2019. "Indonesia's Commitment to Reducing GHG and Its Impact on the Indonesian Economy: CGE Approach," MPRA Paper 91317, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:91317
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/91317/1/MPRA_paper_91317.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Tatiana PÃŽÅžCHINA & Romeo Fortuna, 2018. "Economic Growth Though Competitive Advantage and Specialization: the Example of Winemaking in Moldova," European Journal of Economics and Business Studies Articles, Revistia Research and Publishing, vol. 4, January -.
    2. Lin, Boqiang & Jia, Zhijie, 2018. "The energy, environmental and economic impacts of carbon tax rate and taxation industry: A CGE based study in China," Energy, Elsevier, vol. 159(C), pages 558-568.
    3. Zhang, Jiekuan & Zhang, Yan, 2018. "Carbon tax, tourism CO2 emissions and economic welfare," Annals of Tourism Research, Elsevier, vol. 69(C), pages 18-30.
    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. Umer Shahzad & Magdalena Radulescu & Syed Rahim & Cem Isik & Zahid Yousaf & Stefan Alexandru Ionescu, 2021. "Do Environment-Related Policy Instruments and Technologies Facilitate Renewable Energy Generation? Exploring the Contextual Evidence from Developed Economies," Energies, MDPI, vol. 14(3), pages 1-25, January.
    2. Mardones, Cristian & Ortega, José, 2021. "Are the emissions trading systems’ simulations generated with a computable general equilibrium model sensitive to the nested production structure?," Applied Energy, Elsevier, vol. 298(C).
    3. Tan, Xiujie & Sun, Qian & Wang, Meiji & Se Cheong, Tsun & Yan Shum, Wai & Huang, Jinpeng, 2022. "Assessing the effects of emissions trading systems on energy consumption and energy mix," Applied Energy, Elsevier, vol. 310(C).
    4. Cheng, Ya & Sinha, Avik & Ghosh, Vinit & Sengupta, Tuhin & Luo, Huawei, 2021. "Carbon Tax and Energy Innovation at Crossroads of Carbon Neutrality: Designing a Sustainable Decarbonization Policy," MPRA Paper 108185, University Library of Munich, Germany, revised 2021.
    5. Jia, Zhijie & Lin, Boqiang, 2020. "Rethinking the choice of carbon tax and carbon trading in China," Technological Forecasting and Social Change, Elsevier, vol. 159(C).
    6. Li, Yan & Feng, Tian-tian & Liu, Li-li & Zhang, Meng-xi, 2023. "How do the electricity market and carbon market interact and achieve integrated development?--A bibliometric-based review," Energy, Elsevier, vol. 265(C).
    7. Navneel Shalendra Prasad & Nikeel Nishkar Kumar, 2022. "Resident Perceptions of Environment and Economic Impacts of Tourism in Fiji," Sustainability, MDPI, vol. 14(9), pages 1-20, April.
    8. Nusrate Aziz & Belayet Hossain & Laura Lamb, 2022. "Does green policy pay dividends?," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 24(2), pages 147-172, April.
    9. Cui, Lianbiao & Li, Rongjing & Song, Malin & Zhu, Lei, 2019. "Can China achieve its 2030 energy development targets by fulfilling carbon intensity reduction commitments?," Energy Economics, Elsevier, vol. 83(C), pages 61-73.
    10. Lin, Boqiang & Jia, Zhijie, 2019. "How does tax system on energy industries affect energy demand, CO2 emissions, and economy in China?," Energy Economics, Elsevier, vol. 84(C).
    11. Lin, Boqiang & Chen, Yufang, 2019. "Does electricity price matter for innovation in renewable energy technologies in China?," Energy Economics, Elsevier, vol. 78(C), pages 259-266.
    12. Qianyi Du & Haoran Pan & Shuang Liang & Xiaoxue Liu, 2023. "Can Green Credit Policies Accelerate the Realization of the Dual Carbon Goal in China? Examination Based on an Endogenous Financial CGE Model," IJERPH, MDPI, vol. 20(5), pages 1-26, March.
    13. Le Treut, Gaëlle & Lefèvre, Julien & Lallana, Francisco & Bravo, Gonzalo, 2021. "The multi-level economic impacts of deep decarbonization strategies for the energy system," Energy Policy, Elsevier, vol. 156(C).
    14. Rodríguez, M. & Teotónio, C. & Roebeling, P. & Fortes, P., 2023. "Targeting energy savings? Better on primary than final energy and less on intensity metrics," Energy Economics, Elsevier, vol. 125(C).
    15. Debbage, Keith G. & Debbage, Neil, 2019. "Aviation carbon emissions, route choice and tourist destinations: Are non-stop routes a remedy?," Annals of Tourism Research, Elsevier, vol. 79(C).
    16. Jianping Zha & Rong Fan & Yao Yao & Lamei He & Yuanyuan Meng, 2021. "Framework for accounting for tourism carbon emissions in China: An industrial linkage perspective," Tourism Economics, , vol. 27(7), pages 1430-1460, November.
    17. Yunxiu Ma & Zhanjun Xu, 2023. "Construction of Low-Carbon Land Use and Management System in Coal Mining Areas," Sustainability, MDPI, vol. 15(16), pages 1-19, August.
    18. Sun, Gebing & Li, Guozhi & Dilanchiev, Azer & Kazimova, Asli, 2023. "Promotion of green financing: Role of renewable energy and energy transition in China," Renewable Energy, Elsevier, vol. 210(C), pages 769-775.
    19. Jiménez, Juan Luis & Valido, Jorge & Pellicer, Alfonso Antonio, 2023. "Evaluating the effect of air transport resident subsidies on non-residents tourists’ expenditure," Journal of Air Transport Management, Elsevier, vol. 106(C).
    20. Sun, Yuanyuan & Mao, Xianqiang & Liu, Gengyuan & Yin, Xinan & Zhao, Yanwei, 2020. "Modelling the effects of energy taxes on ecological footprint transfers in China's foreign trade," Ecological Modelling, Elsevier, vol. 431(C).

    More about this item

    Keywords

    carbon emission; GHG; carbon tax; CGE;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

    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:pra:mprapa:91317. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.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.