scholarly journals Impact of Carbon Tax Increase on Product Prices in Japan

Energies ◽  
2021 ◽  
Vol 14 (7) ◽  
pp. 1986
Author(s):  
Katsuyuki Nakano ◽  
Ken Yamagishi
Keyword(s):  
Carbon Tax ◽  
Ghg Emissions ◽  
Policy Instrument ◽  
Primary Aluminum ◽  
Carbon Taxes ◽  
Price Changes ◽  
Industry Sector ◽  
Ch4 And N2o ◽  
Recycled Plastics ◽  
The Impact

The introduction or strengthening of a carbon tax is being considered in many countries as an economic policy instrument to reduce greenhouse gas (GHG) emissions. However, there is no study analyzing the impact of a carbon tax increase in a uniform method for various products, reflecting the energy taxes and exemptions. Therefore, this study analyzes the price changes of products associated with the introduction of a stronger carbon tax, using Japan as an example. A process-based life cycle assessment database was used to enable a detailed product-level analysis. Five scenarios with different taxation amounts and methods were analyzed. The results show that price changes vary greatly by industry sector and product, even within the same industry sector. For example, seasonal vegetables and recycled plastics are less affected by carbon tax increases. Imported products, such as primary aluminum, are not affected by the Japanese carbon tax change, indicating a risk of carbon leakage. If GHGs other than CO2 are also taxed, the price of CH4 and N2O emitting products, such as rice and beef, would rise significantly. The method presented in this paper enables companies to assume price changes in procured products due to carbon taxes and policymakers to analyze the impact of such taxes on products.

scholarly journals Investigating the impact of carbon tax on socially responsible corporate governance: The case of South African motor vehicle manufacturers

2015 ◽  
Vol 12 (2) ◽  
pp. 128-134
Author(s):  
Suren Pillay ◽  
Pieter Buys
Keyword(s):  
Corporate Governance ◽  
South African ◽  
Manufacturing Industry ◽  
Motor Vehicle ◽  
Carbon Tax ◽  
Policy Decision ◽  
Environmental Damage ◽  
Carbon Taxes ◽  
Socially Responsible ◽  
The Impact

Socially responsible corporate governance is an essential aspect of the contemporary corporate environment, and then especially in ensuring continuous sustainable development within a South African context. As such, it also encompasses broad environmentally focused aspects. The motor vehicle manufacturing industry in South Africa was among the first to be faced with the implementation of carbon taxes. This paper explores the policy decision to implement the carbon tax within the context of socially responsible governance in the motor vehicle manufacturing industry. The research methodology applied incorporates both review of supporting literature and an exploratory empirical case study. The research suggests that the industry is cognizant of the importance of environmental damage costs and their responsibility therein, while also indicating that corporate social investment in this industry was non-responsive to the implementation to carbon tax. The results also suggest that the current carbon tax rate may be adequately priced and is an effective instrument in lowering greenhouse gas emissions

Research on Environmental Tax to Affect the Economic Development and GHG Mitigation in Beijing, China

2014 ◽  
Vol 522-524 ◽  
pp. 1871-1878 ◽  
Author(s):  
Yu Zou ◽  
Jun Nian Song ◽  
Takeshi Mizunoya ◽  
Helmut Yabar ◽  
Yoshiro Higano
Keyword(s):  
Growth Rate ◽  
Economic Development ◽  
Carbon Tax ◽  
Ghg Emissions ◽  
Environmental Taxes ◽  
Annual Growth Rate ◽  
Environmental Tax ◽  
Ghg Mitigation ◽  
Emissions Mitigation ◽  
The Impact

As the most industrialized and urbanized region, Beijing plays as a demonstration role to show the impact of environmental policies on the economy development and GHG mitigation. In this paper, we constructed a dynamic input-output model introducing the different levels of environmental taxes. It not only can choose the optimal tax level, explore the relationships between economy and environment, but also can analyze the future trends of the economy and GHG intensity from 2010 to 2025. The objective function is the maximized GRP, subject to GHG emissions constraint and a series of subjective functions. The simulation results illustrated that with the GHG emissions constraint as 1.5 times of the 2010 level, carbon tax as 50 CNY/t CO2-e is effective to promote the economic development and GHG emissions mitigation. Annual growth rate of GRP can be up to 6.1%. The economic growth rate increases 0.3% compared with the condition when not introducing the policies. In 2025, the GHG intensity will be 43.5 t CO2-e/million CNY, 38.8% reduced compared with the 2010 level. This research proves that the proposed environmental tax is effective to promote the economic development and GHG mitigation.

scholarly journals Has Economics Caught Up with Climate Science?

1970 ◽  
Vol 3 (1) ◽  
Author(s):  
Shreekant Gupta
Keyword(s):  
Scientific Evidence ◽  
Ghg Emissions ◽  
Climate Science ◽  
Damage Function ◽  
Carbon Taxes ◽  
Damage Functions ◽  
Benefit Cost Analysis ◽  
Gradual Approach ◽  
Dice Model ◽  
The Impact

Whereas scientific evidence points towards substantial and urgent reduction in greenhouses gas (GHG) emissions, economic analysis of climate change seems to be out of sync by indicating a more gradual approach. In particular, economic models that use benefit cost analysis, namely, integrated assessment models (IAMs) have been criticised for being conservative in their recommendations on the speed of reducing GHG emissions and the associated levels of carbon taxes. This essay focuses on a prototypical IAM, namely, Nordhaus’ DICE model to argue the schism between science and economics is more apparent than real. Analysis of the DICE model suggests extreme climate scenarios can be captured through alternative specifications of the damage function (the impact of temperature on the economy). In particular, damage functions that extend the standard quadratic representation are highly convex (Weitzman 2012). Thus, they are able to capture climate tipping points as well as “fat tail” risks originating from uncertainty with regard to equilibrium climate sensitivity.

scholarly journals Could revenue recycling make effective carbon taxation politically feasible?

2019 ◽  
Vol 5 (9) ◽  
pp. eaax3323 ◽  
Author(s):  
Liam F. Beiser-McGrath ◽  
Thomas Bernauer
Keyword(s):  
Carbon Tax ◽  
Public Support ◽  
The United States ◽  
Policy Instrument ◽  
Industrialized Countries ◽  
Carbon Taxes ◽  
Playing Field ◽  
Revenue Recycling ◽  
Carbon Taxation ◽  
Global Energy Supply

Carbon taxes are widely regarded as a potentially effective and economically efficient policy instrument for decarbonizing the global energy supply and thus limiting global warming. The main obstacle is political feasibility because of opposition from citizens and industry. Earmarking revenues from carbon taxation for spending that benefits citizens (i.e., revenue recycling) might help policy makers escape this political impasse. On the basis of choice experiments with representative samples of citizens in Germany and the United States, we examine whether revenue recycling could mitigate two key obstacles to achieving sufficient public support for carbon taxes: (i) declines in support as taxation levels increase and (ii) concerns over the international economic level playing field. For both countries, we find that revenue recycling could help achieve majority support for carbon tax levels of up to $50 to $70 per metric ton of carbon, but only if industrialized countries join forces and adopt similar carbon taxes.

scholarly journals Climate Change Policies and the Carbon Tax Effect on Meat and Dairy Industries in Brazil

2021 ◽  
Vol 13 (16) ◽  
pp. 9026
Author(s):  
Augusto Mussi Alvim ◽  
Eduardo Rodrigues Sanguinet
Keyword(s):  
Climate Change ◽  
Greenhouse Gas ◽  
Computable General Equilibrium ◽  
Carbon Tax ◽  
Ghg Emissions ◽  
Carbon Taxes ◽  
Climate Change Policies ◽  
Cost Distribution ◽  
Estimation System ◽  
Trade Analysis

This study analyzes the impacts of reducing greenhouse gas (GHG) emissions on the meat and dairy industries. To achieve this goal, the Global Trade Analysis Project (GTAP) database was used in a Computable General Equilibrium (CGE) setting, which allows for the inclusion of carbon taxes and the definition of four alternative environmental policies scenarios using both Global Warming Potential (GWP) and Global Temperature Potential (GTP) as GHG emissions measures. All scenarios analyze the main effects of carbon-based tax economic instruments on the industry and national production, trade, and emissions, comparing the results for different measures of GHG, GWP, and GTP from the Greenhouse Gas Emissions Estimation System (SEEG) sectoral Brazilian emissions database. In contrast with other industries, relatively lower taxes on the meat and dairy industries seem to be the most adequate in terms of cost distribution in the Brazilian economic structure when only the GWP measure is considered. Urban activities and less-methane-intensive industries benefit from climate change policies designed using GWP-based rather than GTP-based carbon taxes. The article also highlights the importance of a gradual introduction of carbon taxes, allowing the most vulnerable industries a transition moment to adopt clean technologies and/or redirect economic activity to less-GHG-emitting segments.

Evaluating the Impact of Carbon Taxes on the Optimal Design of Distributed Energy Systems

2012 ◽  
Vol 524-527 ◽  
pp. 2420-2424 ◽  
Author(s):  
Zhe Zhou ◽  
Pei Liu ◽  
Jian Yun Zhang ◽  
Zheng Li
Keyword(s):  
Optimization Model ◽  
Carbon Tax ◽  
Energy Systems ◽  
Energy System ◽  
Optimal Configuration ◽  
Tax Rates ◽  
Carbon Taxes ◽  
Distributed Energy ◽  
Distributed Energy System ◽  
The Impact

Distributed energy systems can play an essential role in providing energy with substantial environmental and other benefits. This paper presents a multi-objective optimization model for the planning of distributed energy systems, aiming at simultaneous minimization of the total annual cost and greenhouse gas emissions. The impact of carbon tax rates on the optimal configuration and performance of a distributed energy system is evaluated based on the optimization model. A review of international policies on carbon taxes is performed for estimation of future carbon tax rates in China. Results show that the potential carbon tax in the future may not have significant impacts on the optimal configuration of a distributed energy system.

scholarly journals Greenhouse gases emissions from riparian wetlands: an example from the Inner Mongolia grassland region in China

2021 ◽  
Vol 18 (17) ◽  
pp. 4855-4872
Author(s):  
Xinyu Liu ◽  
Xixi Lu ◽  
Ruihong Yu ◽  
Heyang Sun ◽  
Hao Xue ◽  
...  
Keyword(s):  
Co2 Emissions ◽  
Anthropogenic Activities ◽  
Ghg Emissions ◽  
Spatiotemporal Pattern ◽  
N2o Emissions ◽  
Riparian Wetlands ◽  
Wet Season ◽  
Riparian Wetland ◽  
Ch4 And N2o ◽  
The Impact

Abstract. Gradual riparian wetland drying is increasingly sensitive to global warming and contributes to climate change. Riparian wetlands play a significant role in regulating carbon and nitrogen cycles. In this study, we analyzed the emissions of carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O) from riparian wetlands in the Xilin River basin to understand the role of these ecosystems in greenhouse gas (GHG) emissions. Moreover, the impact of the catchment hydrology and soil property variations on GHG emissions over time and space was evaluated. Our results demonstrate that riparian wetlands emit larger amounts of CO2 (335–2790 mgm-2h-1 in the wet season and 72–387 mgm-2h-1 in the dry season) than CH4 and N2O to the atmosphere due to high plant and soil respiration. The results also reveal clear seasonal variations and spatial patterns along the transects in the longitudinal direction. N2O emissions showed a spatiotemporal pattern similar to that of CO2 emissions. Near-stream sites were the only sources of CH4 emissions, while the other sites served as sinks for these emissions. Soil moisture content and soil temperature were the essential factors controlling GHG emissions, and abundant aboveground biomass promoted the CO2, CH4, and N2O emissions. Moreover, compared to different types of grasslands, riparian wetlands were the potential hotspots of GHG emissions in the Inner Mongolian region. Degradation of downstream wetlands has reduced the soil carbon pool by approximately 60 %, decreased CO2 emissions by approximately 35 %, and converted the wetland from a CH4 and N2O source to a sink. Our study showed that anthropogenic activities have extensively changed the hydrological characteristics of the riparian wetlands and might accelerate carbon loss, which could further affect GHG emissions.

scholarly journals Measuring the Macroeconomic Impact of Carbon Taxes

2020 ◽  
Vol 110 ◽  
pp. 101-106
Author(s):  
Gilbert E. Metcalf ◽  
James H. Stock
Keyword(s):  
Growth Rates ◽  
Employment Growth ◽  
Carbon Tax ◽  
Positive Impact ◽  
Tax Rates ◽  
Carbon Taxes ◽  
Total Employment ◽  
Negative Effect ◽  
Macroeconomic Impact ◽  
The Impact

Policymakers often express concern about the impact of carbon taxes on employment or GDP. Using a new dataset on carbon tax rates, we estimate the macroeconomic impacts of these taxes on GDP and employment growth rates for various specifications and samples. Our point estimates suggest a zero to modest positive impact on GDP and total employment growth rates. More importantly, we find no robust evidence of a negative effect of the tax on employment or GDP growth. For the European experience at least, we find no support for the view that carbon taxes are job or growth killers.

scholarly journals THE ROLE OF BORDER CARBON ADJUSTMENTS IN A U.S. CARBON TAX

2018 ◽  
Vol 09 (01) ◽  
pp. 1840011 ◽  
Author(s):  
WARWICK J. MCKIBBIN ◽  
ADELE C. MORRIS ◽  
PETER J. WILCOXEN ◽  
WEIFENG LIU
Keyword(s):  
Computable General Equilibrium ◽  
Carbon Tax ◽  
Real Exchange Rates ◽  
The United States ◽  
Computable General Equilibrium Model ◽  
Carbon Taxes ◽  
Carbon Policy ◽  
Lump Sum ◽  
Net Exports ◽  
The Impact

This paper examines carbon tax design options in the United States using an intertemporal computable general equilibrium model of the world economy called G-Cubed. In this paper, we discuss four policy scenarios that explore two overarching issues: (1) the effects of a carbon tax under alternative assumptions about the use of the resulting revenue, and (2) the effects of a system of import charges on carbon-intensive goods (“border carbon adjustments” or BCAs). Consistent with earlier studies, we find that the carbon tax raises considerable revenue and reduces CO2 emissions significantly relative to baseline, no matter how the revenue is used. Gross annual revenue from the carbon tax with lump sum rebating and no BCA begins at $110 billion in 2020 and rises gradually to $170 billion in 2040. By 2040, annual CO2 emissions fall from 5.5 billion metric tons (BMT) under the baseline to 2.4 BMT, a decline of 3.1 BMT, or 57%. Cumulative emissions over 2020 to 2040 fall by 48 BMT. Also consistent with earlier studies, we find that the carbon tax has very small overall impacts on gross domestic product (GDP), wages, employment, and consumption. Different uses of the revenue from the carbon tax result in slightly different levels and compositions of GDP across consumption, investment and net exports. Overall, using carbon tax revenue to reduce the capital income tax rate results in better macroeconomic outcomes than using the revenue for lump sum transfers. Counter to their purported purpose of protecting U.S. trade strength, for a given revenue policy, BCAs tend to produce lower net exports than the carbon taxes alone. This is generally because the BCAs raise the value of the dollar relative to other currencies, thus lowering exports more than they lower imports. This is consistent with standard results in the international trade literature on the effects of import tariffs and export subsidies on real exchange rates, a result that is often overlooked in the discussion of domestic carbon policy. In a finding new to the literature, our results show that BCAs can have strikingly different effects depending on the use of the revenue. Under a lump sum rebate, BCAs exacerbate the impact of the carbon tax by lowering domestic output further than it would fall under the carbon tax alone. Under a capital tax swap, however, BCAs have a moderating effect: they reduce the impact of the tax on most industries.

Analysis of carbon credit trading (CCT) practices: a study of manufacturing organizations in British Columbia, Canada

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ajay K. Garg ◽  
Amit Kohli ◽  
Jill Beverly Cummings
Keyword(s):  
British Columbia ◽  
Competitive Advantage ◽  
Ghg Emissions ◽  
Future Research ◽  
Carbon Taxes ◽  
Carbon Credit ◽  
Protection Factor ◽  
Content Type ◽  
Ghg Reduction ◽  
The Impact

Purpose Factors that affect the use of carbon credit trading (CCT) by industries include as follows: avoiding carbon taxes, international expansion, venture capital, competitive advantage and clean technology. The impact of these factors is examined here in relation to the profile of 14 Canadian organizations to investigate factors that influence CCT practices. Design/methodology/approach This research involves a survey of 150 employees at 14 industries in British Columbia (BC) Canada to review and analyze their perceptions of factors that impact CCT. Findings Results demonstrate the potential for enhancing the use of CCT by organizations. It was shown that organizations perceive that CCT enhances their competitive advantage, which is an incentive that needs further investigation as having potential for encouraging CCT and greenhouse gas (GHG) reduction. Research limitations/implications Due to limited funding and workforce, as well as geographical constraints, only 14 industrial organizations were engaged in this research in BC Canada. The scope of future research needs to be enlarged by considering neighboring countries such as the USA and Mexico. This research regarding factors that impact organizations in adopting carbon crediting trading has the potential to provide and shape inter-continental comparisons. Practical implications This study illustrates how CCT has the potential to enhance competitive advantage and may impact the industry toward reducing GHG emissions through CCT. This concept adds a new environmental protection factor and dimension to trade and industry. As organizations plan to invest funds in different carbon reduction projects this may result in expanded employment opportunities. Social implications Organizations are interested in CCT but may hesitate in engaging in CCT as it can be a complex procedure. In addition to further research, workshops and seminars regarding CCT and dissemination of research should be organized by the universities, related authorities and government organizations to make CCT more known and feasible. This study shows that financial and non-financial benefits may be gained by any organization when involved in CCT. Larger advertising and information campaigns may motivate more organizations in this regard. Originality/value This study extends the study of Garg et al. (2017) regarding challenges for CCT practices. International Journal of Management, 10(1), 85–96. It contributes evidence that the size (revenue) of an organization does not affect the level of carbon credits traded and shows potential for smaller organizations to be encouraged to take part in CCT.

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