Carbon Tax Scheme Research Articles

Research on the influence of consumer Perceived Value on the purchase of new energy vehicles

In recent years, low carbon economy has gradually become a hot issue of global concern. At present, Chinese consumers are still in the initial stages of understanding and research on carbon tax. By analysing various carbon tax regimes domestically and abroad, this article employs a quantitative research methodology to explore the influence of consumer perceptions on customers' purchase of new energy vehicles. This paper concentrates on the operational models of several major carbon tax systems at home and abroad and provides a thorough overview of the setting of carbon tax schemes, risk management, and the economics of carbon trading in each country. Drawing on the experiences of foreign countries and regions in implementing carbon tax schemes, this paper offers suggestions on how China can design carbon tax policies to promote green consumption behavior among contemporary Chinese consumers.

Distributionally robust newsvendor problem with partial demand information under carbon emission regulations

Carbon emission schemes are widely adopted and implemented in practice to control greenhouse gas emissions. However, a firm restricted by carbon emission schemes with only partial demand information may face greater challenges. In this paper, we investigate an ordering and pricing newsvendor problem with partial demand information, which considers carbon emissions generated from the processes of ordering and disposing of the excess inventory. We propose three distributionally robust models to maximize the worst-case profit under different carbon emission regulations: carbon tax, cap-and-trade and carbon cap, respectively. We derive the implicit solution under the carbon tax scheme and design heuristic algorithms based on Lagrangian relaxation under the cap-and-trade and carbon cap regulations. Numerical analysis indicates: (i) all three regulations are effective in reducing carbon emissions; (ii) the implementation of carbon schemes leads to higher optimal pricing and lower optimal ordering quantity, both carbon tax and carbon cap regulations will always lead to lower profit, while the retailer may benefit from the cap-and-trade regulation by selling out the carbon credit; (iii) the proposed approach performs well under different distribution specific scenarios.

Assessing the decarbonization roadmap of a RoPax ferry

AbstractThe reduction of emissions from shipping is necessary to combat climate change. One viable option is to change the fuels utilized. In this study, we investigate the environmental and economic performance of marine diesel oil (MDO), liquified natural gas (LNG), liquified biogas (LBG), and a mixture of LNG and LBG. We study a real case of a roll-on/roll-off passenger ship (RoPax) in Finland. Life cycle thinking is applied to assess the environmental impact, covering emissions from well to propeller (raw material extraction, fuel production, transportation, storage, and combustion), while the economic implications are estimated through future fuel prices and carbon pricing from 2023 to 2050. The carbon pricing covers different carbon tax schemes, namely stated policies scenario (STEPS), sustainable development scenarios (SDS), and net-zero emissions (NZE). STEPS reflects the existing measures and policies under development; SDS pursues to meet the goal of Paris Agreement, while NZE aims to reach net zero. Adopting LNG would improve carbon dioxide emissions, but the overall climate change impact was not significantly lower than MDO. It is also found that the biggest environmental improvement can be obtained by switching to LBG, although future availability can be an issue. The economic assessment shows that LBG has the highest fuel price uncertainties, although its carbon cost will be the lowest. Alternatively, using LNG & LBG mixture can serve as a transition path to contain climate change while dealing with its price uncertainty and availability.

Assessing the economic viability of the Arctic Northeast Passage from 2021 to 2065

ABSTRACT The Northeast Passage (NEP) holds immense potential as a link for maritime transport activities between Europe and Asia, primarily due to the extended sailing season resulting from global warming. However, the economic viability of the Arctic shipping route remains disputed. This study aims to comprehensively evaluate the feasibility of container transportation along the NEP compared to that along the Suez Canal Route (SCR) by using current (2021–2023) and future (2025–2065) scenarios. The results reveal that larger vessels have lower CO2 emissions and costs than small vessels in the NEP, but the costs for larger vessels in the NEP are still higher than those in the SCR throughout both summer and winter seasons under the current scenario. The outcomes also show that a progressive carbon tax scheme will increase the unit shipping costs for all routes in the future scenario, with the NEP being most economically viable during summer. Furthermore, the extended navigable period (NP) bolsters the NEP’s economic cost advantage during a seasonal period. Nevertheless, from a year-round operations standpoint, the NEP remains less competitive than the SCR before 2065. The conclusions drawn from this research serve as a significant resource for decision-makers when formulating operational plans.

Public support for carbon tax in South Korea: The role of tax design and revenue recycling

AbstractCarbon tax is widely regarded as an effective and efficient method to reduce carbon emissions. However, the introduction of carbon tax has faced resistance from the public and interest groups. In this article, we examine the determinants of public support for carbon taxation in South Korea. While the expected cost of the carbon tax on individual citizens appears to be the most important determinant of preferences towards carbon tax, we also find that the public support changes depending on the design of the revenue recycling system. The public is more likely to support a carbon tax scheme that is earmarked to support the energy‐poor population compared to one that uses tax revenues for general government expenditures. The use of carbon tax revenues to create green sector jobs appears to significantly increase the support for carbon tax compared to the use of revenue for the general environment budget. Our findings suggest that while opposition towards carbon tax exists, certain design features such as universal carbon dividends can alleviate some resistance from the public.

Carbon taxation in Europe

The subject of the study is the carbon tax legislations of European countries.The purpose of the article is to identify the general consistent patterns of carbon taxation in a number of European countries: the United Kingdom, the Netherlands, Norway, France, Sweden and Switzerland.The methodology of the research includes the analysis of the provisions of the carbon taxing legislation of these countries.The main results, scope of application. The analysis shows that the structure of the carbon tax in European countries has differences, but the predominant form of taxation is an excise tax on fuel. In Sweden and Switzerland the excise rate is in direct proportion to the carbon content of the fuel, however in the UK, Norway and France excise rates are set more voluntary. Each country countries grant exemptions for specific fuel uses and industries that they deem essential to protect from the exceeding tax burden. In the Netherlands, Norway and France, carbon/energy taxation is applied in addition to the emissions trading system. In all these countries, this is motivated by the evaluation of the latter as insufficient to attain the objectives of diminishing CO2 emissions. Based on the experience of these countries, there is no prevalent model for the arrangement of carbon / energy taxation. For instance, France imposes an energy tax as an excise tax, that is, a consumption tax. The UK levies excise taxes on the consumption of natural gas, LNG, coal and electricity, correlated to the amount of energy contained in these fuel products. Norway applies both an excise and an indirect output tax in the oil sector. In the Netherlands, a carbon tax is levied on actual CO2 emissions (as far as they are accounted for under the EU ETS), but this tax only applies to ETS participants and only if the ETS prices are below the established level. Despite the high tax rates (up to 120 euros per ton of CO2 in Sweden and Switzerland), the significance of the carbon tax for the economies of the considered countries is low due to both low energy consumption and the high proportion of carbon-neutral energy sources such as hydroelectric, nuclear and biofuel.Conclusions. An analysis of the provisions of the carbon taxing legislations of various European countries revealed that these countries adopt such carbon tax schemes that optimize their administrative feasibility, public acceptability, and economic impact mitigation for vital sectors. At the same time, in the majority of countries, the carbon tax is implemented as an excise tax on fuel.

Accelerating Battery Electric Vehicle Program through Progressive Carbon Tax and Collection Scheme

Accelerating Battery Electric Vehicle Program through Progressive Carbon Tax and Collection Scheme

Carbon pricing and firms’ GHG emissions: Firm-level empirical evidence from East Asia

This study investigates the impacts of carbon pricing policies on firms' greenhouse gas (GHG) emissions. We include two carbon pricing policies: carbon tax and emission trading scheme (ETS) at national and sub-national (province) levels, measured as policy existence (binary variable) and carbon price (continuous variable). Firms' GHG emissions are measured as total emissions and emission intensity. Using unique recent firm-level data from 2010 to 2021 from three East Asia countries (Japan, the Republic of Korea (ROK), and the People's Republic of China (PRC)), we obtain the following key findings. First, the national carbon pricing policy significantly reduced firms' GHG emissions and GHG emission intensity in Japan and the ROK. The greater the carbon price, the greater the impact. Second, the subnational carbon pricing policies implemented in two provinces of Japan (Saitama and Tokyo) decreased firms' GHG emissions. Third, heavy industry sectors such as energy, utilities, and industrials experienced a substantial decrease in GHG emission intensity due to the carbon pricing policy. Finally, our main results are robust to different model specifications and various measures of firms' GHG emissions. Although literature studying the ex-post impact of carbon pricing on emissions at country and sector-level is abundant, this paper contributes to the existing literature providing empirical evidence of the impact of carbon pricing policies on firms' emissions using firm-level data, which is highly limited especially in Asia.

Road to Net-Zero Emission in Indonesia: Legal Loopholes in National Carbon Tax Scheme

Indonesia is committed to accelerating the achievement of Net-Zero Emissions by 2060. The Carbon tax is a new instrument that it believes could encourage the achievement of carbon neutrality. Through the Harmonisation of Tax Regulations Act, the Government regulated several carbon tax provisions, which were initially going to be implemented on April 1, 2022, and then postponed to July 1, 2022. Unfortunately, the carbon tax implementation has been delayed until an undetermined time. Implementing legal interpretation, this research comprehensively analyses carbon tax provisions in the Harmonisation of Tax Regulations Act. The research will examine the ability of current carbon tax arrangements to accelerate the achievement of Zero Emissions. This work uses normative juridical methods with a conceptual and statutory approach to provide recommendations. The results show that the carbon tax arrangement does not contain substantial clarity, and various implementing regulations are needed. Article 13 of the Harmonisation of Tax Regulation Act contains vague norms that need to be elaborated. The paper recommends the urgency of legislative review mechanism for the Harmonisation of Tax Regulation Act, especially Article 13, and the need to harmonise it with related laws.

Designing an acceptable and fair carbon tax: The role of mental accounting

Despite its potential for curbing greenhouse gas emissions, carbon taxation encounters strong public resistance. However, acceptability depends on how tax revenues are used. We test the hypothesis that mental accounting theory can both explain systematic patterns in citizens’ preferences, such as the support for environmental earmarking, and help design a carbon tax scheme that is both acceptable and fair. Across six experiments conducted in the United Kingdom and in France (Ntotal = 7100), we show that: (a) There is an acceptability boost when the use of tax revenues matches the tax domain thematically (e.g., allocating carbon tax revenues to green projects), as demonstrated by an interaction effect between the tax domain and the expenditure domain on the level of tax support. This result is consistent with the use of a mental accounting heuristic, by which people create mental budgets where the origin of revenues is matched thematically with their domain of use. (b) Carbon tax acceptability varies with the proportion of tax revenues earmarked for green projects. (c) A mixed carbon tax scheme, in which most revenues are earmarked for green projects and the rest is redistributed to low-income households to be spent on sustainable expenses, receives most support among the tested options. We also demonstrate the robustness of the mental accounting heuristic in two ways: by showing that the preference for environmental earmarking of carbon taxes is observed across all relevant subsections of the population, and that mental accounting also appears to shape preferences for health-related earmarking of tobacco taxes, and social-related earmarking of inheritance taxes.

Solving carbon tax challenges with a holistic approach: Integrating evolutionary game theory and life cycle energy solutions

Carbon emissions from the combustion of fossil fuels continue to be a significant barrier in the fight against global climate change. Carbon taxes are an energy policy tool for substantially carbon dioxide (CO2) emissions reduction. This paper proposes a new strategy to promote the use of renewable energy by enterprises in industrial parks against the backdrop of a carbon tax. Using an evolutionary game model based on life cycle assessment (LCA), this study investigates the impact of dynamic carbon tax mechanisms, fines, and subsidies on the energy choices of industrial park enterprises. This paper's primary contribution is the incorporation of LCA into the evolutionary game model, which facilitates accurate calculation of the carbon tax parameter value. According to the study's findings, the carbon tax rate increases the propensity of enterprises to acquire a high percentage of renewable energy. While there is a negative relationship between fines and the propensity of enterprises to adopt a low proportion of renewable energy, an increase in subsidies decreases the proportion of enterprises that purchase a high proportion of renewable energy. This paper concludes by providing a theoretical foundation for policymakers to construct precise carbon tax schemes and promote renewable energy consumption among industrial park enterprises while simultaneously reducing carbon emissions.

The Problem with the Anthropocene: Kainos, Not Anthropos

The Problem with the Anthropocene: <i>Kainos</i>, Not <i>Anthropos</i>

Preface

It is a great pleasure for the editorial committee to introduce the proceedings of the 2023 2nd International Conference on New Energy Technology Innovation and Low-carbon Development (NET-LC 2023). The conference took place in Changsha, China during January 6th-8th, 2023 (hybrid conference), with the attendance of about 50 scholars, experts, scientists and researchers in relevant domains.NET-LC 2023 aims at creating an academic forum where current research results and technical advances can be exchanged, the development of New Energy and Low-carbon Technology can be promoted, research and/or business links established, and global partnership for potential collaboration built. Specialists, researchers, and related industry personnel around the world were welcomed to present their scientific research findings and innovative approaches to related issues.To make this conference on schedule, we had a three-part plenary conference including a keynote speech part delivered by three renowned speakers from different regions of China and other countries. The speech topics covered Green Hydrogen for Meeting Net Zero, How does Carbon Penalty Reshape Supply Chain? and Application of Nanoparticles in Renewable Energy Systems. Supply-chain-related transportation and consumer-related transportation are two main carbon tax schemes imposed on retailers. Under this condition, Prof. Lin Liu’s speech discussed how these two schemes reshape the relationship between retailer and supplier in supply chain, and how this affects carbon tax and the total system emissions. We are very optimistic that all participants will acquire new ideas and knowledge from this conference to enhance the capability toward new energy technology innovation and low-carbon development.We have received tremendous paper submissions from all over China and abroad. Through a rigorous peer-review process, all submissions were performed double blind review to check their quality of content, level of innovation, significance, originality and legibility. Based on the expertise review comments, some excellent papers were accepted and the corresponding authors were invited to submit their papers for final publication. The accepted papers included topics on: Renewable Energy, Solar Energy Applications, New Energy Equipment, Low Carbon Power, Distributed Energy Systems, etc.We would like to thank the Conference General Chair and all the Committee members for the procedures that lead to the organization of this event, to our colleagues who contributed to its realization, and to the members of the Journal of Physics: Conference Series, for their patience while waiting for the final versions of the papers. We hope you will benefit from all the manuscripts of the proceedings and learn some new and novel ideas.List of Committee members are available in this pdf.

Managing life-cycle pollution through green development and government intervention: A dynamic model

Taking life-cycle pollution and government intervention into consideration, this paper examines whether green process development and green product development benefit the environment (under what conditions) from a dynamic model perspective. Using an optimal control model approach, we analyze profitability and life-cycle environmental performance under three scenarios: no green development; green process development aiming at reducing carbon dioxide emissions in the production phase; green product development aiming at reducing pollution in the product’s use and disposal phases. We find there exists a green development paradox: under certain government interventions and market conditions, green process and product development may help to increase profitability while failing to improve environmental performance, from the perspective not only of the single supply chain but also of the whole of society. Fortunately, properly designed carbon tax or green product subsidy schemes as powerful market-based interventions can avoid this green development paradox. Our findings have practical implications for both policymakers and practitioners making environmental policy decisions and devising green development strategies.

Health benefits from the reduction of PM2.5 concentrations under carbon tax and emission trading scheme: a case study in China.

Climate policies could improve air quality, thereby generating health benefits and thus increasing labour input for economic growth. Nevertheless, health benefits are usually overlooked in evaluation frameworks of climate policies. In this paper, a dynamic recursive computable general equilibrium (CGE) model is adopted to define how climate policies are related to air pollution, namely [Formula: see text] concentrations. Health benefits of climate policies are divided into reduction of [Formula: see text]-related morbidity and mortality. The CGE model results show that both carbon tax and emission trading scheme (ETS) decrease morbidity and mortality; therefore, under climate policies, [Formula: see text]-related labour loss decreases, and thus increasing labour input triggers an economic boom. Carbon tax generates more health benefits in short term, while health benefits of ETS policy will gradually increase in long term. Hence, we conclude that regarding health benefits, a long-term ETS policy is preferable to a long-term carbon tax. This finding implies that the recently established nationwide ETS market in China is meaningful, as it will generate more health benefits in future. Nevertheless, the quantified health benefits in this paper still cannot compensate GDP loss induced by climate policy implementations, implying that it is a challenging task to unbiasedly model health benefits of climate policies. Hence, we have recommended that the scopes and contents of health benefits should be expanded in evaluations of climate policies.

Feasibility of a Fair Carbon Tax Scheme

For decades climate change is considered the greatest challenge nature and humanity have to face. But not only the normative questions of climate change need to be considered by ethicists, politicians all over the world debate about the right political instruments to induce carbon mitigation. As an essential piece of climate policy carbon taxation is one of the most discussed political instruments to address climate change. The article aims to examine whether carbon taxation is a fair and feasible instru­ment to address climate change or not and deals with the questions: Can a carbon tax be considered fair? And is a fair carbon tax feasible?

Optimal carbon taxation in EU frontrunner countries: coordinating with the EU ETS and addressing leakage

ABSTRACT Several EU countries have targets for the reduction of CO2e emissions that go beyond the target set by the EU. We study what would be the optimal carbon tax policy in such EU frontrunner countries, focusing on two questions: 1) How should national climate policy be coordinated with the European Emissions Trading System (ETS), and 2) How should an EU frontrunner country address the risk of carbon leakage? We show that these issues are closely linked and that the answers to the two questions depend on the following factors: i) The shadow cost assigned to carbon leakage, ii) The rates of carbon leakage in the ETS and non-ETS sectors, and iii) The price of ETS emission allowances relative to the domestic marginal abatement cost of attaining the desired reduction of domestic emissions. Our analysis shows that it is preferable for an EU frontrunner country to implement a national ETS sector carbon tax that results in a higher total carbon price in the national ETS sector compared to the national non-ETS sector. We illustrate how our theoretical model can be combined with a modified version of the GTAP-E general equilibrium model of the world economy to estimate the parameters of the optimal national carbon tax scheme in an EU frontrunner country, using Denmark as an example. We find that the ETS sector should pay a total carbon price that is between 33 and 78 percent above that of the rest of the economy depending on the aversion to carbon leakage. Key policy insights It is generally optimal for an EU frontrunner country – one with a domestic emission target beyond that set by the EU – to implement a national ETS sector tax. The total national carbon price should be higher in the ETS sector compared to the non-ETS sector. Data for Denmark indicate that the total national ETS sector carbon price should be at least 33 percent higher than that of the national non-ETS sector.

Stochastic tramp ship routing with speed optimization: analyzing the impact of the Northern Sea Route on $$\mathrm {CO_2}$$ emissions

AbstractTo address the decarbonization challenge, we consider a tramp ship routing problem with speed optimization where the availability of future cargoes is uncertain. We propose a two-stage stochastic programming model to solve it. The first stage of the model decides on the deterministic cargoes with the known availability, while the second stage decides on the detailed routing and scheduling plans with the available spot cargoes revealed. Since sailing speed heavily influences on the fuel consumption, and hence costs and emissions, we include the ships’ speeds along the different sailing legs as decision variables. The opening of the Northern Sea Route (NSR) provides a shorter alternative in connecting Asia and Europe, which may benefit the shipping industry in reducing $$\mathrm {CO_2}$$ CO 2 emissions. We use our model to evaluate the impact of NSR on $$\mathrm {CO_2}$$ CO 2 emissions in tramp shipping considering speed optimization and possible future carbon tax schemes, such as fixed and progressive carbon taxes. The computational results indicate that using the NSR improves the gross margins and reduces the $$\mathrm {CO_2}$$ CO 2 emissions for tramp operators.

Carbon Tax or Emission Trading Scheme: Which is Better to Reduce Carbon Emission?

Carbon Tax or Emission Trading Scheme: Which is Better to Reduce Carbon Emission?

A discourse analysis of yellow-vest resistance against carbon taxes

Carbon taxation is a core instrument for climate mitigation. Its implementation, however, faces popular resistance. In this paper we study one of the most emblematic mobilizations triggered by the carbon tax issue, the Yellow Vest movement in France. We use Q-methodology, a mixed-method approach to identify discourses (or viewpoints) held by protesters. We find four statistically-distinctive viewpoints, emphasizing respectively: a systemic critique of capitalism; environmental action that is fair; priority over incomes and purchasing power of common people; and inequality and the responsibilities of corporations. Our research points to the importance of ideology in shaping viewpoints and filtering attitudes towards carbon taxes. Yet beyond ideological differences, we find consensus among all discourses, in that there should be more consultation in energy transition policy; the rich and not the poor should pay the cost of transition; and the government should use tax revenue for the transition only. We conclude that, for bold carbon tax schemes to be implemented with less conflict, a much more participatory, transparent and equitable design would be necessary than the one experienced in France.