Carbon Tax Research Articles

This article focuses on the climate change policies that are needed to reduce the greenhouse gas emissions of the ultra-rich, primarily from superyachts, private jets, mega-mansions, and high-emission road vehicles. These are all goods for which demand is inelastic and therefore difficult to curb with Pigouvian policies. The article proposes a comparative analysis of the three main luxury-focused mitigation policies discussed in the literature: bans, luxury carbon taxation and progressive carbon taxation. The analysis is based on six normative and non-normative criteria: emissions justice, expressive justice, social efficiency, the non-frustration of legitimate expectations, administrative feasibility and prevention of carbon leakage. The first part of the article discusses how each of these criteria is relevant to an analysis of mitigation policies targeting the emissions of the ultra-rich. The second part examines each luxury-focused mitigation policy against all six criteria and assigns them a score. The third section briefly discusses the results of this comparative analysis.

ABSTRACT This paper proposes a mathematical model of a supply chain system involving a single manufacturer and two rival retailers under price-sensitive demand and green technology investment. To regulate inventory levels in a stochastic scenario, both supply chain partners use a periodic review policy. This study incorporates a carbon tax regulation and green incentives to cut down emissions. Three distinct scenarios are compared and analyzed, focusing on their respective achievements in both economic performance and environmental sustainability. The goal of this study is to determine the optimal selling prices, safety factor, length of review time, and green investment to maximize the joint total profit. The algorithm for solving the given problem is presented, and a numerical example is used to verify its implementation. The findings indicate that a product’s selling price is crucial to determine because its fluctuations will affect both demand and the prices of competitors. Competition among retailers has shown to positively influence the supply chain by boosting profits. However, this competitive drive also leads to a rise in carbon emissions. The results also imply that carbon policies, when paired with green investments and incentives, have been shown to boost overall supply chain profitability while lowering emissions effectively.

ABSTRACT Amid growing emphasis on sustainability and customer-driven market, supply chain must balance environmental responsibility with efficiency. Present study develops a joint economic lot-sizing model integrating outsourcing, green technology investment, carbon emission regulations, and customization strategies in a two-level supply chain comprising a manufacturer and a retailer. The manufacturer produces fresh products and outsources defective repairs, while the retailer customizes part of the output to meet individual preferences. Both chain-partners invest in emission-reduction technologies to comply with carbon tax policies. Considering price-sensitive demand, the model optimizes customization cost, emission-reduction investment, selling price, and production cycle to maximize centralized profit. The novelty lies in the integrated treatment of outsourcing, carbon control, and customization under trade credit. Results suggest improving quality to reduce defectives, moderating customization, and setting optimal credit periods to enhance profitability.

Emission reduction effect and transmission mechanism of carbon tax from the perspective of embodied carbon emissions.

This conceptual paper explores the key determinants influencing the successful implementation of a carbon tax policy in Malaysia, with a focus on institutional readiness, perceived fairness, and public trust in government. Framed by the Theory of Planned Behaviour (TPB), the study proposes a theoretical model to analyse how these factors shape carbon tax adoption and public compliance. By integrating insights from international carbon tax experiences and Malaysia’s unique socio-political context, the paper emphasises the importance of transparent revenue use, interagency coordination, and administrative capability in fostering public acceptance. The analysis highlights that while a carbon tax is critical for advancing Malaysia’s climate goals under SDG 13 (Climate Action), its viability depends on the government’s ability to communicate policy fairness, strengthen institutional credibility, and engage stakeholders effectively. The paper contributes to sustainable tax policy discussions by outlining a framework for designing a politically feasible and socially equitable carbon tax system in Malaysia.

Sustainable strategies for marine plastic waste remanufacturing systems under diverse carbon reduction policies.

Exploring the carbon rebound effect of agriculture and policy response: Lessons from zero growth of fertiliser action.

Unequal footprint drivers: A pooled Bewley approach to energy and trade dynamics in OECD.

Should the carbon tax under carbon footprint management be implemented? The case of new energy vehicles

Carbon emissions reduction in maritime supply chain under cap-and-trade and carbon tax policies

The impact of combining differentiated carbon tax and emissions trading system on the construction sector: Based on the industry linkage perspective

The article examines the international experience of environmental taxation and the possibilities of adapting its effective elements to the conditions of the Republic of Kazakhstan. The study aims to determine how fiscal and regulatory instruments can be transformed into a driving force for sustainable development and the transition to a low-carbon economy. The methodological framework of the research is based on general scientific and comparative methods, content analysis of legal frameworks, statistical evaluation, expert assessment, and scenario modeling. The comparative analysis of environmental taxation systems in Japan, the European Union, Sweden, and Singapore revealed institutional patterns, tax mechanisms, and fiscal approaches that have proven successful in reducing emissions and promoting green growth. The findings show that environmental taxation worldwide functions not merely as a fiscal instrument but as an institutional mechanism for ecological modernization. The study emphasizes that Kazakhstan’s current system remains predominantly fiscal and lacks effective linkage between taxation and environmental outcomes. The paper proposes three possible models for adapting international experience: the Swedish model (high rates and social compensation), the Singaporean model (gradual and flexible approach), and the European model (integration of taxes and emissions trading). The research novelty lies in the development of a conceptual framework for forming a national integrated system of carbon regulation, combining a carbon tax, a modernized KAZ ETS, and a targeted ecological fund. The practical value of the results consists in their potential application for improving Kazakhstan’s fiscal and environmental policy, harmonizing it with the EU CBAM mechanism, and enhancing the country’s competitiveness in global markets.

Sustainable carbon tax design under multiple green subsidies: A system dynamics framework

As environmental, social, and governance (ESG) practices gain momentum globally, logistics service providers (LSPs) in Malaysia—particularly small and medium-sized enterprises (SMEs)—face growing pressure to adopt ESG frameworks and align with national sustainability mandates. This study investigates the key internal and external factors influencing ESG adoption among logistics SMEs, focusing on readiness for carbon-conscious reporting under the Simplified ESG Disclosure Guide (SEDG). Guided by Stakeholder and Institutional Theory, the study identifies four critical determinants: ESG knowledge and awareness, change readiness, resource availability, and stakeholder engagement. A structured survey of 156 logistics professionals, combined with pilot testing and exploratory factor analysis, confirmed the reliability and validity of the constructs. Regression analysis revealed that all four factors significantly influence ESG adoption, with resource availability being the most dominant predictor. Findings show that knowledge gaps, resistance to change, limited financial resources, and weak stakeholder collaboration hinder effective ESG integration, especially regarding Scope 1–3 emissions reporting. To address these barriers, a five-year roadmap is proposed to help SMEs implement phased ESG strategies, build internal capabilities, and comply with upcoming regulatory requirements, including a potential carbon tax by 2027. This research offers a practical framework for enhancing ESG maturity among logistics SMEs and provides actionable recommendations for policymakers, industry associations, and corporate stakeholders to support sustainable transformation in the Malaysian logistics sector.

Climate change is a global challenge caused by human activities and has a broad impact on social, economic, and ecosystem life. In Indonesia, the increasing frequency of natural disasters is clear evidence of the impact of climate change that needs to be responded to immediately through adaptive and equitable legal policies. This research aims to analyze the implementation of environmental law in supporting climate adaptation and achieving the Net Zero Emission (NZE) target. The method used is a qualitative approach through literature study and regulatory analysis. The results show that although Indonesia has a relatively comprehensive legal framework, such as Law No. 32/2009 and its implementing regulations, implementation still faces various structural challenges, including weak law enforcement, overlapping authorities, limited low-carbon technology, and low public participation. In addition, policies such as carbon tax and carbon trading have not run optimally due to weak coordination and resistance from industry players. Therefore, an integrative strategy is needed through strengthening institutional capacity, green economy incentives, increasing environmental literacy, and developing domestic technology. Consistent, participatory, and justice-based law enforcement is the main foundation for Indonesia’s transition to sustainable development and climate resilience.

Purpose Prefabricated component (PC) enterprises as the primary contributors to carbon emissions in prefabricated buildings play a crucial role in sustainable development. The diffusion of low-carbon behavior (LCB) is recognized as one of the key measures for carbon abatement. However, it is a complex and vague issue to explore LCB diffusion among PC enterprises. This paper aims to examine the influence of external factors on the diffusion of LCB within PC enterprises from a behavioral heterogeneity perspective. Design/methodology/approach This study introduces two types of LCB from the heterogeneity in investment requirements and abatement effects, namely H-type LCB, involving substantial efforts in low-carbon materials and process technologies, and S-type LCB, focusing on optimizing organizational structures and management models under low-carbon principles. Then, a three-strategy complex network evolutionary game model is constructed to explore LCB diffusion among PC enterprises, and the influence of environmental policies and market demand on the diffusion of H-type and S-type LCB is analyzed. Findings (1) Carbon emission trading subsidy and green quota system have dual effects on the diffusion of LCB. Among them, the promoting role of the green quota on H-type LCB diffusion is optimal and the marginal effect of subsidies on inhibiting S-type LCB diffusion is increasing. (2) PC enterprises are not sensitive to the mild carbon tax (CT). The diffusion of LCB is facilitated when CT reaches a certain threshold. (3) Green market demand only has a positive effect on S-type LCB diffusion. Originality/value The networked game model proposed in this study contributes to revealing the perceptual process of low-carbon transition in construction enterprises, providing support for PC enterprises to implement low-carbon production and for the government to formulate policies.

Abstract This paper analyses the labour-market and inequality implications of a carbon tax in a framework with skills heterogeneity and up-skilling opportunities. Our model extends the standard Two-Agent New Keynesian (TANK) setup by including green and brown firms, skilled and unskilled workers, and human-capital accumulation. We find that a gradual increase in the carbon price, designed to achieve full decarbonisation by 2050, produces heterogeneous effects across households: (i) skilled households reduce their labour supply in the short run across both sectors, opting instead to invest immediately in green up-skilling; (ii) unskilled households, driven by the income effect, increase hours worked in both sectors; and (iii) skilled households reap higher wages in the green sector, thereby exacerbating inequality. Neglecting the role of skills heterogeneity and up-skilling investment suggests that this policy has greater negative effects on labour income, consumption and output in both the short and the long run. Our findings underscore the importance of incorporating these labour-market features for a comprehensive assessment of the aggregate, sectoral and distributional effects of a carbon tax.

Purpose As climate challenges grow and countries set increasingly ambitious climate goals, the drive to find effective policy tools to address these issues is accelerating. This research aims to describe how the carbon tax and its impacts reduce carbon emissions. Design/methodology/approach This study employs bibliometric analysis to identify research trends and a systematic literature review to offer insights into how carbon taxes, as policy measures, can help reduce carbon emissions. It sourced relevant articles from Scopus databases using a range of keywords and keyword combinations. Findings The findings of this study indicate that the carbon tax is just one of many variables that can reduce carbon emissions. Its effectiveness varies by market maturity, with reductions of 5–21% in established markets. The best results come from hybrid approaches that use both carbon taxes and emission trading systems. When combined with carbon capture, utilization and storage technologies, these approaches could lead to a 32.5% reduction by 2060. Research limitations/implications Practically, policymakers should consider the effectiveness of the carbon tax (policy) in reducing carbon emissions. The study theoretical implications include highlighting various theories for future research and sharing the mapping variables related to organizations’ carbon emission reduction. Originality/value The study adds originality and value to the existing literature by establishing a connection between carbon taxes and carbon emissions. To the best of the authors’ knowledge, this study is the first research that combines bibliometric analysis with systematic literature review to answer how carbon tax and its impacts reduce carbon emissions.

Abstract This paper examines the impact of Canada's federal carbon tax on farmgate grain prices, focusing on pass‐through in the grain transportation sector. The tax, which was eliminated in April 2025 amid concerns about rising food costs, was widely criticized by farmers for increasing expenses related to fertilizer, propane, and rail shipping. I develop a theoretical model of a farm‐to‐port supply chain to identify the determinants of carbon tax pass‐through and test its predictions using monthly wheat and canola prices. The empirical framework features pairwise regional price gaps and exploits the interaction between shipping distance and the escalating carbon tax as the key source of variation. The results point to considerable overshifting in the wheat market, a possibility that is accommodated within the theoretical framework. Estimated pass‐through effects are generally imprecise, with large standard errors and sensitivity to specification choices. My findings highlight the value of the carbon tax as a natural experiment on market pass‐through and the empirical challenges of pass‐through estimation.

Abstract Considering changing climatic conditions and victimized economic growth, the present study uses data envelopment analysis to obtain the environmental efficiency scores and regresses them with the economic complexity index, a proxy for economic development, for 4 panels formulated based on geographical proximity. The panels formed are America (USA, Mexico, Canada); Europe (Germany, UK, France, Poland, Italy, Ukraine); Asia (India, China, Japan, Russia, Iran); and Africa (South Africa, Egypt, Algeria, Nigeria). The timeframe has been restricted to 1995–2023 due to the unavailability of data. The study adopts the PRISMA approach to conduct a systematic literature review. Further, random effect regression and the random coefficient for generalized least squares have been employed in the panel data for estimating regression coefficients. The results obtained from examining the impact of economic growth on environmental efficiency are quite startling. America has an inverted-N-shaped EKC, Africa exhibits a downward-sloping EKC, Europe has an N-shaped Environment Kuznets Curve (EKC), and lastly, Asia has an inverted-U-shaped EKC. The different results arise because of differences in the structure and background of each panel. For instance, America is comprised of three developed capital-intensive countries; Europe has a mix of developing and developed nations under the umbrella of the European Union which has the strongest emission trading system coupled with carbon tax; Asia comprises of labor-intensive developing nations with the exception of Japan and lastly, Africa has developing nations with a proposition of ‘grow now, clean later.’ Therefore, every nation must recognize the shared global goal of sustainability, which can be achieved through collective effort rather than by focusing solely on individual countries becoming clean.