Carbon Tax Research Articles

Investigating the Antecedents of Corporate Governance Influencing the Investment Efficiency of Firms: A Synthesis of Literature and Future Research Agenda

This review study investigates the critical antecedents of corporate governance affecting firms’ investment efficiency. It proposes a comprehensive framework encompassing corporate governance’s multifaceted aspects for all stakeholders’ benefit. A thorough literature evaluation has been conducted using the SCOPUS database, encompassing all publications published between 2010 and June 2023. The existing body of literature has also been examined through the theoretical frameworks, journals, authors, articles and research construct questions. After synthesising 154 articles through bibliometric analysis, four key antecedents (financial reporting quality, auditing and accounting quality, environmental, social and governance (ESG), institutional ownership and board structure) of corporate governance were identified as primary influencers of investment efficiency. New corporate governance perspectives, such as ESG and carbon taxation in the context of investment efficiency, have been identified and can be explored in depth by future researchers. The review provides a holistic framework for corporate governance, which defines the association with investment efficiency. The study presents potential future research areas where scholars can extend the scope of corporate governance from the perspective of investment efficiency.

Features of Carbon Regulation in the Republic of Belarus and the Russian Federation: Comparative Analysis and Trends

The article reviews international acts in the field of combating climate change (United Nations Framework Convention on Climate Change, Kyoto Protocol and Paris Agreement), identifies the main trends in the field of carbon regulation: emissions quoting; implementation of climate projects; introduction of greenhouse gas reporting and expansion of the legislative framework. A comparative analysis of the national legislation in force in the Republic of Belarus and the Russian Federation is carried out, its conditional classification is considered with the allocation of carbon regulation instruments being applied, viz. the market ones, the restrictive ones, the supporting ones and the auxiliary ones. The regulation of greenhouse gas emissions should include a wide range of activities and cannot be reduced solely to restrictive instruments. Market instruments include the national emissions trading system, international voluntary markets and instruments of international cooperation, while restrictive instruments include the introduction of carbon taxes, quotas, and mandatory carbon reporting. Among the examples of supporting instruments subsidies, targeted financing and tax preferences, as well as information policy may be noted. Auxiliary instruments include methodologies for quantitative assessment of greenhouse gas emissions and uptake, carbon reporting standards and tools for verification of reporting on greenhouse gas emissions, legislated possibility of implementing climate projects. The normative national regulation regarding the accounting of greenhouse gas emissions is considered, the categories of emission sources and greenhouse gases whose emissions are subject to accounting are identified. It is important to note that the legislation on greenhouse gases in the Republic of Belarus and the Russian Federation, as well as around the world, has not been finalized and is in the process of formation.

A fairer and more effective carbon tax

A fairer and more effective carbon tax

Would carbon tax policy promote real estate prices?

Real estate plays a pivotal role in carbon emissions. Carbon tax policy is a crucial measure for mitigating enterprises' carbon emissions. However, imposing a carbon tax on productive enterprises in the real estate industry to reduce emissions may increase their production costs, which could easily be passed on to buyers, thus inflating real estate prices and impeding policy effectiveness. To examine the impact and negative consequences of carbon tax policy applied to the real estate industry, we develop a dynamic stochastic general equilibrium model encompassing building materials manufacturers, real estate firms, and the environmental regulatory government. Findings indicate that implementing the carbon tax policy significantly reduces carbon emissions in the real estate industry. However, the existence of a price transmission mechanism makes carbon tax policies susceptible to driving up real estate prices. Further welfare analysis shows that increasing carbon tax rates will result in social welfare losses, allowing the government to modify and refine its policy objectives.

Determinants of Tax Regulations Referring to ESG Principles on Company Performance in Indonesia

Purpose: This study examines ESG integration in Indonesia's tax regulations and their impact on financial performance, focusing on green investments.Method: This study uses a qualitative case study method to analyze ESG integration in Indonesia's tax regulations, focusing on policies, carbon tax effectiveness, and emissions disclosure. The research is based on corporate legitimacy and institutional theories to explore the relationship between tax regulations and sustainable practices.Findings: The study's findings reveal significant growth in green investments in Indonesia, largely driven by supportive ESG-oriented tax policies. Despite this progress, challenges such as limited corporate awareness and data availability remain barriers to fully realizing the potential of these policies. The analysis also highlights the importance of these regulations in fostering sustainable business practices, particularly in industries like palm oil that are crucial for addressing climate change.Novelty: This research uniquely examines the impact of ESG-focused tax regulations on green investments and sustainable practices in Indonesia, using corporate legitimacy and institutional theories. It fills a literature gap by exploring how tax regulations drive ESG integration in the business sector of a developing country.Implications: The study has important implications for policymakers, businesses, and stakeholders in Indonesia and similar economies. It shows that ESG-focused tax policies positively impact green investments, suggesting that refining and implementing these policies could strengthen sustainable business practices and support environmental goals. The study also emphasizes the need for greater corporate awareness and better data collection to address challenges and ensure effective ESG integration in the corporate sector.

Temporal Convolutional Network for Carbon Tax Projection: A Data-Driven Approach

This study introduces a novel application of a temporal convolutional network (TCN) for projecting carbon tax prices, addressing the critical need for accurate forecasting in climate policy. Utilizing data from the World Carbon Pricing Database, we demonstrate that the TCN significantly outperformed traditional time series models in capturing the complex dynamics of carbon pricing. Our model achieved a 31.4% improvement in mean absolute error over ARIMA baselines, with an MAE of 2.43 compared to 3.54 for ARIMA. The TCN model also showed superior performance across different time horizons, demonstrating a 30.0% lower MAE for 1-year projections, and enhanced adaptability to policy changes, with only a 39.8% increase in prediction error after major shifts, compared to ARIMA’s 95.6%. These results underscore the potential of deep learning for enhancing the precision of carbon price projections, thereby supporting more informed and effective climate policy decisions. Our findings have significant implications for policymakers and stakeholders in the realm of carbon pricing and climate change mitigation strategies, offering a powerful tool for navigating the complex landscape of environmental economics.

Research on the Game Model of Green Technology Investment in a Two-Echelon Manufacturing Supply Chain Under Carbon Tax Regulation

Using a Stackelberg game model, this research examines the impact of government-imposed carbon taxes on the sustainability of a two-echelon supply chain. The analysis focuses on the interactions between upstream suppliers and downstream manufacturers, taking into account how manufacturers’ carbon emissions influence market demand, as well as how sustainability levels and price affect this demand. The results show that a centralized system has a lesser potential for total profit development in the supply chain than a decentralized system. To encourage investment in green technologies throughout the supply chain, this paper proposes two coordination mechanisms: a green subsidy and a two-part tariff contract. Numerical study reveals that a win–win scenario for the supply chain requires suppliers to share part of the costs. Furthermore, under a two-part tariff contract, successfully managing fixed costs can result in total profit levels comparable to those in a centralized system. The research also makes strategy recommendations, such as differentiating carbon levies, improving supply chain coordination, and assessing fixed costs. These aim to provide theoretical and practical implications for supply chain management in order to assist businesses and policymakers in effectively responding to the problems of climate change.

Carbon Taxation and Electricity Price Dynamics: Empirical Evidence from the Australian Market

AbstractIn this paper, we study the change of Australian electricity price dynamics that was observed before, during and after the two-year period in which a Carbon Pricing Mechanism was in force. We fit a two-states Markov Switching Model, representing a high- and a low-volatility state of the world. To avoid the interference due to periodic patterns, a deseasonalization process accounting for short- and long-term seasonality is carried out prior to the study of volatility. Estimation results highlight that, during the period when the carbon tax applies, the volatility level is lower for both the states of the world. Furthermore, the persistence in the low-volatility state is increased in the presence of the carbon tax. This conclusion is particularly relevant for macroeconomic and investment considerations because the increased uncertainty in electricity prices can significantly influence firms’ investment decisions and shape inflation expectations.

Impact of climate change on Chinese college students’ consumption behavior: A case study of Jilin University

This study investigates the impact of climate change on the consumption behavior of Chinese college students, especially their daily expenses. Using a survey method, data were collected and analyzed to understand the correlation between climate change awareness and consumption choices among students at Jilin University. The findings indicate that over 70% of respondents believe climate change significantly affects their daily lives and consumption habits. Particularly, changes in transportation choices were most prominent, with 68% of students opting for greener travel options. However, less willingness was observed in reducing online shopping or paying carbon taxes. These insights highlight the need for tailored educational interventions to enhance climate change awareness and promote sustainable consumption practices among college students.

Decarbonizing urban passenger transportation: Policy effectiveness and interactions

The urban passenger transportation plays a pivotal role in achieving ambitious climate targets. Exploring its opportunities for decarbonization requires a comprehensive understanding of the impacts of different policy designs. This study develops an integrated model for simulating the effectiveness and interactions of various policy designs aimed at decarbonizing urban passenger transportation. It distinguishes itself from previous studies by considering a broad range of criteria, including mitigation effectiveness, cost effectiveness, and transition effectiveness. It also assesses the overall performance of various policy options based on these effectiveness criteria. In an urban case study, we have identified the complementary nature of the majority of policy mixes and also revealed conflicting effects when implementing a supplementary policy, such as carbon tax and fuel economy regulation. The concurrent implementation of multiple policies can yield synergistic effects or trade-offs, with the former being widely acknowledged in the context of energy transition, while the latter is more commonly observed in relation to emissions reductions and cost savings. This study also reveals a trade-off effect across various effectiveness criteria, underscoring the significance of formulating well-balanced policy packages to promote sustainable urban passenger transport.

Unearthing hidden agendas: carbon emissions and corporate tax strategies

Purpose This study aims to investigate the relationship between carbon risk and tax avoidance practices among American firms. Design/methodology/approach The research examines 854 American firms over the period from 2015 to 2021. A two-stage least squares regression technique with instrumental variables is used to address potential endogeneity concerns. Findings The study shows that an increase in carbon risk is associated with higher tax avoidance, particularly through Scope 1 and Scope 2 emissions. These findings are robust across various metrics used to measure carbon risk and align with the insights derived from agency theory. Research limitations/implications Although focusing on American firms provides a consistent regulatory context, it may limit the generalizability of findings to other contexts. The study’s implications suggest that policymakers and managers should consider the interplay between environmental and tax policies in their decision-making processes. Originality/value This study contributes to the literature by extending the understanding of determinants of corporate tax avoidance by introducing carbon risk as a significant factor. The results provide valuable insights for stakeholders into the evolving dynamics of corporate environmental and fiscal responsibilities.

Global Cooperation for Reducing Carbon Emissions: the Role of Carbon Taxes

Global Cooperation for Reducing Carbon Emissions: the Role of Carbon Taxes

Evaluating the carbon emission reduction in construction and demolition waste management in China

Construction and demolition waste reduction (C&DWR) is an important measure to protect the environment and promote sustainable development in the construction sector. The present policy in China remains a lack of emphasis on carbon tax and penalty for reducing construction waste. This paper proposes a construction and demolition waste (C&DW) management model to identify the waste reduction effects of various policies in China. It simulates the effects of single policies and combined policies on waste reduction and carbon emission by using the approach of integrating system dynamics and grey model theory. The results reveal that: (1) Penalties can effectively reduce the amount of illegal dump waste and carbon emissions from illegal dump waste, with an appropriate penalty value (in Chinese CNY) suggested as ∈160,320. (2) Subsidies can vastly increase the amount of waste recycled and a carbon tax can reduce carbon emissions; the recommended values are suggested as subsidies ∈30,45 and carbon tax ∈40,70. (3) Compared to other policies, the combined policy of penalty–waste disposal charging fee–subsidy–carbon tax (160, 60, 45, 70) achieves the greatest environmental benefits in terms of reducing waste and carbon emission. (4) Governments should improve waste minimization incentive policies and gradually introduce trials for a carbon tax policy, encourage the use of digital governance combined with blockchain technology to regulate C&DW. These findings provide valuable insights for policymakers to develop effective waste reduction strategies and promote sustainability through the implementation of C&DWR theories.

Carbon taxes and tariffs, financial frictions, and international spillovers

Ambitious climate policy, coupled with financial frictions, has the potential to create macrofinancial stability risk. Such stability risk may expand beyond the economy implementing climate policy, potentially catching other countries off guard. International spillovers may occur because of trade and financial channels. Hence, we study the design and effects of climate policies in the world economy with international trade and financial flows. We develop a two-sector, two-country, dynamic general equilibrium model with financial frictions, climate policies, including carbon tariffs, and macroprudential policies. Using the calibrated model, we evaluate spillovers from unilateral domestic carbon pricing to foreign economies and back. We also examine more ambitious climate architectures involving carbon tariffs or a global carbon price. We find that accounting for cross-border financial flows and frictions in credit markets is crucial to understand the effects of climate policies and to guide the implementation of macroprudential policies at the global scale aimed at minimizing transition risk and paving the way for ambitious climate policy.

Process simulation and techno-economic analysis of CO2 capture by coupling calcium looping with concentrated solar power in coal-fired power plant

The calcium looping (CaL) cycle is an effective high-temperature CO2 capture technology, its primary energy consumption arises from the calcination process, which limits the development of CaL technology. Utilizing concentrated solar power (CSP) instead of combustion for the calcination process in the CaL cycle can significantly reduce the energy penalty associated with CO2 capture of coal-fired power plants. Currently, the application of coupling CaL with concentrated solar power (CaL-CSP) systems in coal-fired power plants is still in its infancy, and there is limited research on its thermal performance and techno-economic analysis. In this study, a process simulation model of a 660 MW supercritical coal-fired power plant is developed as a reference. Subsequently, four different heat transfer routes are integrated into the design of CaL-CSP systems. The results indicate that the coupled power plant achieves a CO2 capture rate of 90 % compared to the reference coal-fired power plant, and reduces annual CO2 emissions by 93 % to only 58.2 g CO2/kWh. The CO2 capture energy penalty is 0.24 MJ/kg CO2. A sensitivity analysis of power generation cost reveals that if the cost of solar concentrator components is halved, the power generation cost will decrease to just 25 % higher than the reference power plant. Given the rapid advancements in CSP technology, this reduction is likely to be realized soon. Moreover, with the increase in carbon taxes and carbon prices, the power generation cost is expected to further decrease.

Power System Decarbonization: A Comparison Between Carbon Taxes and Forcing Coal Power Plant Retirements

Power System Decarbonization: A Comparison Between Carbon Taxes and Forcing Coal Power Plant Retirements

Demise of fossil fuels part I: Supply and demand

According to United Nations , the world needs to reduce the emission of CO2 and other global warming gases by 45 % by 2030 and to negligible amount by 2050. According to UN, this is necessary to keep the goal of keeping earth temperature not exceeding 1.5 °C compared to pre-industrial level temperatures.To achieve this objective means reducing the fossil fuel consumption. Fossil fuels are largely responsible for emitting CO2; therefore, without significant reduction in fossil fuels consumption by 2050, the net zero emission by 2050 is not possible.One argument advanced in support of reducing fossil fuels consumption is limited supply. Using the principle of “Peak Oil Theory,” proponents state that fossil fuels is a limited resource and the world will simply run out of it. Based on the available data, we demonstrate that supply of fossil fuels is relatively abundant, and we will not run out of fossil fuels in near term. Using shale formations as an example, we demonstrate how the success of drilling horizontal wells with hydraulic fractures have significantly increased the oil and gas resource available for exploitation. To reduce fossil fuels demand, the available solutions include improving energy efficiency, reducing subsidies on fossil fuels, imposing carbon tax and life choice changes. We discuss some of those alternatives. Fossil fuel supply is relatively abundant and only possible solution to reduce the consumption is to reduce the demand. By comparing developed countries' consumption with developing countries’ consumption, we see a pathway where growth in GDP can be achieved without significant increase in fossil fuels consumption. Because of efficiency gains in energy usage, GDP in developed countries continues to grow without increase in fossil fuels consumption. Faster we reach the efficiency stage in developing countries, easier it would be reduce the fossil fuel consumption in the world.

Public acceptance of beef carbon tax earmarks

The escalating effects of climate change make it important to find ways to offset the carbon burden. One way to do so is to reduce beef consumption, since cattle production creates large amounts of greenhouse gases, which contribute to global warming and climate change. In this study, we explore US consumers’ perceptions of alternative beef products. Specifically, we test the effects of three types of earmark information on consumers’ valuation of a beef carbon tax related to hamburger meat through two labeled discrete choice experiments. Our results show that earmark information can be effective in reducing the negative impact of an environmental tax on consumers’ willingness to pay for beef products. This study contributes to a better understanding of how consumers would bear environmental taxes for beef and alternative products.

Research on the group effect of new energy vehicles from different policy perspectives

Abstract Policies play a pivotal role in fostering the growth of new energy vehicles. This paper delves into the benefits and risks associated with the development of new energy vehicles under varying policy landscapes. Firstly, the intricate relationship between the competition and growth of new energy vehicles and internal combustion engine vehicles is captured through the application of the extended Lotka-Volterra model. Secondly, a simulation flow diagram is constructed, taking into account the actual mediums of policy impact and drawing insights from diverse research methodologies. This flow diagram enables a comprehensive evaluation of environmental benefits, health risks, and traffic pressure. Finally, a critical evaluation of the actual impact of policies on new energy vehicles is conducted, along with an exploration of the root causes of potential policy paradoxes. The findings reveal that a standalone infrastructure support policy, research and development support policy, or carbon tax policy can, in certain periods, lead to an increase in carbon emissions and traffic pressure. Although the driving restriction policy does not exert negative impacts on the environment, health, and traffic at the national level, it can result in a surge in the total vehicle population. Therefore, it is imperative to adopt a combination of policies to mitigate the potential risks associated with any single policy.

Techno Economic Study of Floating Solar Photovoltaic Project in Indonesia using RETscreen

The utilization of solar energy is crucial for the advancement of sustainable power generation on a worldwide scale, driven by environmental concerns and the depletion of fossil fuels. Indonesia's goal is to achieve carbon neutrality by 2060 and it is aggressively advocating for solar energy, which includes the implementation of new methods such as floating photovoltaic (PV) systems. This study evaluates the Techno-Economic Feasibility of Indonesia's Cirata 145 MW floating solar PV project by employing RETScreen technology. The objective is to improve the long-term financial stability, decrease greenhouse gas emissions, and suggest viable choices for improvement. Examining three scenarios that involve alterations in carbon emissions, energy pricing, and loan interest rates demonstrates different levels of project feasibility. The introduction of carbon tax emission pricing has a substantial impact on the feasibility of projects. This study provides useful insights into doing techno-economic feasibility assessments using RETScreen for floating photovoltaic (PV) systems. It demonstrates how modifying parameters can effectively mitigate project risks.