Performing an Environmental Tax Reform in a Regional Economy. A Computable General Equilibrium Approach

2004 ◽  
Author(s):  
F.J. Andr� ◽  
Manuel Alejandro Cardenete Flores ◽  
Esther Vel�zquez
Keyword(s):  
General Equilibrium ◽  
Computable General Equilibrium ◽  
Regional Economy ◽  
Tax Reform ◽  
Environmental Tax ◽  
Environmental Tax Reform ◽  
Equilibrium Approach

scholarly journals A computable general equilibrium analysis of environmental tax reform in Japan with a forward-looking dynamic model

2021 ◽  
Author(s):  
Shiro Takeda ◽  
Toshi H. Arimura
Keyword(s):  
General Equilibrium ◽  
Computable General Equilibrium ◽  
Tax Reform ◽  
Carbon Tax ◽  
Equilibrium Analysis ◽  
Corporate Taxes ◽  
Environmental Tax ◽  
Environmental Tax Reform ◽  
Lump Sum ◽  
Pure Carbon

AbstractThe Japanese government plans to reduce greenhouse gas emissions by 80% by 2050. However, it is not yet clear which policy measures the government will adopt to achieve this goal. In this regard, environmental tax reform, which is the combination of carbon regulation and the reduction of existing distortionary taxes, has attracted much attention. This paper examines the effects of an environmental tax reform in Japan. Using a dynamic computable general equilibrium (CGE) model, we analyze the quantitative impacts of an environmental tax reform and clarify which types of environmental tax reform are the most desirable. In the simulation, we introduce a carbon tax and consider the following four scenarios for the use of the carbon tax revenue: (1) a lump-sum rebate to the household, (2) a cut in income taxes, (3) a cut in corporate taxes and (4) a cut in consumption taxes. The first scenario is a pure carbon tax, and the other three scenarios are types of environmental tax reform. Our CGE simulation shows that (1) environmental tax reform tends to generate more desirable impacts than the pure carbon tax and that (2) the strong double dividend is obtained in some cases. In particular, we show that a cut in corporate taxes leads to the most desirable policy in terms of GDP and national income.

Effects of the tax on retail sales of some fuels on a regional economy: a computable general equilibrium approach

2008 ◽  
Vol 43 (3) ◽  
pp. 781-806 ◽  
Author(s):  
Francisco Javier De Miguel-Vélez ◽  
Manuel Alejandro Cardenete Flores ◽  
Jesús Pérez-Mayo
Keyword(s):  
General Equilibrium ◽  
Computable General Equilibrium ◽  
Regional Economy ◽  
Retail Sales ◽  
Equilibrium Approach
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