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

The 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.

STUDI KOMPARASI PENERAPAN KEBIJAKAN PENGGUNAAN KANTUNG PLASTIK

Environmental Tax Reform, is the term used for changes in the taxation system where the tax object shifts from a 'good base', such as labor, capital or consumption to a 'bad base' such as activities that lead to environmental pollution. This development is the key to good implementation of environmentally sound fiscal policies. This study aims to compare the implementation of government policies on the consumption of plastic bags in several countries and the challenges in implementing these policies. The adoption of the policy significantly reduced the level of consumption of plastic bags in Ireland whereas in Botswana, Canada, South Africa and China the reduction in consumption of plastic bags was only short-term. Reformasi Pajak Lingkungan, adalah istilah yang digunakan untuk perubahan dalam sistem perpajakan di mana objek pajak bergeser dari 'basis yang baik', seperti tenaga kerja, modal atau konsumsi menjadi 'basis yang buruk' seperti kegiatan yang mengarah pada pencemaran lingkungan. Perkembangan tersebut menjadi kunci penerapan yang baik atas kebijakan fiskal yang berwawasan lingkungan. Penelitian ini bertujuan membandingkan implementasi kebijakan pemerintah atas konsumsi kantung plastik di beberapa negara dan tantangan dalam implementasi kebijakan tersebut. Penerapan kebijakan secara signifikan mengurangi tingkat konsumsi kantung plastik di Irlandia sedangkan di Botswana, Kanada, Afrika Selatan dan China penurunan konsumsi kantung plastik hanya bersifat jangka pendek.