Introduction Of Carbon Tax Research Articles

Emission Taxes and Capital Investments: The Role of Tax Incidence

ABSTRACT This paper examines investment responses to emission taxes and the role of tax incidence in passing on tax burdens. Using private firms from Spain and the introduction of an emission tax in 2013 in the Autonomous Community Valenciana, we show that investments decline in response to the emission tax. Importantly, this investment decline does not depend on the level of pollution but on economic factors related to tax incidence. Investments in firms operating in highly competitive markets, firms with low pricing power, and firms with low financial flexibility are the most affected by environmental taxes. We generalize the investment findings using the introduction of carbon taxes in France and Ireland in a stacked difference-in-differences design. Overall, our results indicate that emission taxes affect not only polluters but also other firms and stakeholders such as suppliers, customers, and consumers depending on the relative elasticities of supply and demand. Data Availability: Data are available from the sources cited in the text. JEL Classifications: H22; H23; H32; G31.

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.

Pengaruh Program Pengungkapan Sukarela Terhadap Kesadaran Wajib Pajak dalam UU HPP

The voluntary disclosure program was created to provide taxpayers with the opportunity to disclose unmet tax obligations voluntarily through payments based on the disclosure of their assets. This study uses social learning theory because it is closely related to taxpayer awareness. Through tax socialization provided by the tax authorities, taxpayers obtain tax knowledge about tax law. The problem in this study is to examine the legal certainty of the voluntary disclosure program on taxpayer awareness in the HPP Law. Law Number 7 of 2021 concerning Harmonization of Tax Regulations, namely the government wants to continue to increase taxpayer voluntary compliance, the reform steps taken through the HPP Law are through several things, namely by strengthening tax administration (KUP), taxpayer voluntary disclosure programs (PPS), and broadening the tax base which aims to create justice and equality through policy improvements in income tax, VAT, excise and the introduction of carbon tax. The effect of the voluntary disclosure program in the Harmonization of Tax Regulations Act has an influence on taxpayer awareness, which can be seen in the 2022 komwasjak, the realization of tax revenue reached Rp2,034.5 trillion. Finance Minister Sri Mulyani noted that tax revenue had reached IDR 1,387.78 trillion in September 2023. This value reached 80.78% of this year's target. With the awareness of taxpayers in paying taxes, it can increase state revenue.

Impacts of Shipping Carbon Tax on Dry Bulk Shipping Costs and Maritime Trades—The Case of China

Greenhouse gas (GHG) emissions in shipping have been receiving growing concerns in the maritime industry. Recently, the International Maritime Organization (IMO) is considering the introduction of a global shipping carbon tax, which has become the most talked-about topic in both industry and academia. To assess the potential impact of the carbon tax on maritime trades, a trade-volume-based model of shipping carbon emissions was developed. Considering that bulk shipping is the second-largest carbon emitter in the maritime industry and the low value-to-weight nature of bulk cargoes, the model was applied to analyze the dry bulk trade in China, one of the leading countries in the global dry bulk trade. The results show that the introduction of the carbon tax could have significant impacts on freight rates and commodity prices. Depending on the trading regions and the carbon charges, shipping freight rates would increase by 10–30%, which is equivalent to 1–4% of the trading prices. Additionally, since shorter shipping distances may have less emission per trading tonnage, the shipping carbon tax may significantly change the dry bulk trade patterns, resulting in China’s increasing reliance on nearby countries, e.g., India and Australia, for the import of key commodities. These findings can help shipping companies and sectors make better carbon reduction responses, such as redeploying their fleets, promoting the development of low-carbon shipping technologies, and increasing investments in Australia, as well as South and Southeast Asia.

International Experience in the Design of China's Carbon Tax System

Since the beginning of the 21st century, developing a low-carbon economy and reducing greenhouse gas emissions have become the consensus of the international community. The modern tax system is a green tax system. In theory, levying a carbon tax has the intrinsic value of internalizing the external cost of carbon emissions, releasing the double dividend of environmental taxation, and supplying internal value of global public goods for addressing climate change. It is of strategic significance to achieve peak carbon dioxide emissions and carbon neutrality, promote high-quality development, build an ecological civilization, ensure the sustainable development of the Chinese nation, and build a community with a shared future for mankind. Some western developed countries have established relatively complete carbon tax systems and accumulated many useful experiences in this regard. Based on the various practices of carbon tax collection in foreign countries, this paper proposes system design suggestions for the introduction of carbon tax in our country from four aspects: tax model, tax scope, tax rate and tax preference, and revenue-neutral recycling.

Моніторинг і збереження ґрунтів як компонент системи сталого управління агроекосистемами локального рівня

The article assesses the prospects of local and regional agroecosystems to provide modern measures to improve the quality of land and soils. The authors applied the analysis (induction and deduction) of guiding and normative documents and current publications of both Ukrainian and European on the organization of sustainable use of soils and the priority of their protection. It is important to remember, that the United Nations (U.N.) sustainable development goals (SDGs, indicator 15.3.1) have land degradation neutrality by 2030. A serious aspect of the article is the assessment of the possibilities of Ukrainian agriculture to implement a system of sustainable soil management at the local level in the near future. It is determined that drivers for soil management of agroecosystems, which determine the agenda for all land users and landowners are follows: (1) global processes and geopolitical significance of agriculture; (2) characteristics of soils as a natural object, in particular, their irreplaceability, non-renewability and performance of global biosphere functions; (3) national features, including the lack of real monitoring, gaps in legislation and non-compliance with existing regulations and acts and the land market. Therefore, there is a need for precise legislation to protect and preserve soils, as well as the implementation of agricultural technologies that will ensure a land degradation neutrality and soil sequestration of carbon. Given the uncertainty about the functioning of real soil monitoring at the state level, we consider it promising to organize soil monitoring as a local network. This means that the creation of a components of a specific soil management system should be provided by land users. The authors are convinced that experimental stations in the structure of NAAS should maintain / create their own database. Based on such a database it will be possible to effectively ensure sustainable soil management, namely: to assess soils current state at the moment, ecosystem services from soils, to predict the dynamics of soil indicators, to simulate different variants of their changes and so on. The costs of such a local GIS are offset by gains, including profits from business activities for many years to come. Due to the increased attention to soil organic carbon reserves (introduction of carbon taxes, restrictions on greenhouse gas emissions), it is urgent to assess and forecast the processes of carbon emission-sequestration and appropriate soil capabilities for a particular type of land use. Soil scientists are ready to develop a method of data collection and local GIS, taking into account the specifics of the type of agriculture.

Two Perspectives on Implementation of Carbon Tax Tackling Climate Change: A Literature review

The international community has been continuously discussing carbon tax as a means to tackle climate change. In July 2021 came the announcement of the European Union's Carbon Border Adjustment Mechanism (CBAM). Many countries have expressed their concerns over its impact on their economies. This article reviews a total of ten articles, including eight journal papers, one policy paper and one news article, related to the implementation of carbon tax. Two distinct perspectives over carbon tax can be discerned from this literature review. One sees that the introduction of carbon taxes can help to mitigate climate change. Another sees it leading to negative economic ripple effects, acting as a new kind of tax-free barrier. The CBAM policy itself is still just beginning to be implemented, so no one is sure how the outcome of its implementation will affect each country's economic structure. Neither is it clear how to do a detailed estimation without first knowing to what extent implementation of carbon tax would harm economic structure within developing countries, as well as the potential countermeasures and responses of each country. This review hopes to contribute to further studies in order to better understand the impact of carbon tax and carbon emissions reduction, in consideration of each country's economic structure and feature, can help countries prepare for its implementation.

Technical and financial analysis of large-scale solar-PV in eThekwini Municipality: Residential, business and bulk customers

Regulatory changes, economic challenges, environmental concerns, and changing public perception have contributed to the profound changes observed globally in the electricity industry. Since 2008, South Africa has been experiencing electric power deficits and outages. This has been due in part to generation capacity constraints, belated investment in new electricity infrastructure, deferred maintenance of existing power assets, load growth in areas which were not adequately planned for, high population and economic growth over the last two decades. This has resulted in peak electricity demand outstripping available power generation capacity, leading to electricity shortages and load shedding, which is now impeding economic growth. In South Africa, forced under frequency load shedding, rising electricity tariffs, energy efficiency, declining cost of solar PV systems, the introduction of Carbon taxes, high cost of unserved energy has led consumers to explore embedded generation options to assist with reducing their energy bills, hence investments in solar PV has become an option to municipal customers. The simple payback period of solar PV systems is an important indicator for customers to ascertain whether to invest in these systems or not. Revenue loss remains a significant concern for municipalities who have historically designed single and two-rate bundled tariffs, which rely on municipalities selling electricity to ensure its business’s sustainability. Municipalities have now proposed new tariff structures designed to minimize the adverse impact of reducing electricity sales from solar PV by creating net billing tariffs with a built in network access charge component based on the customer’s inverter size. Case studies were carried out to better understand the impact on the feasibility of solar PV systems with and without the implementation of these new tariffs and its impact on the customer’s payback periods. A calculation of the levelised cost of electricity and customers rate of return for the different customer classes were also calculated to provide a better picture on the financial feasibility of rooftop solar PV. Results obtained from these case studies indicate lucrative payback periods for customers installing solar PV systems with improved revenue recovery for the municipality.

The Influence of Carbon Tax on the Feasibility of Industrial Project: A Case Study of Heat Exchanger Replacement at PT Kaltim Methanol Industri, Indonesia

Petrochemical industries have faced growing pressure to decrease their carbon emission from direct and indirect sources. This work aims to demonstrate a carbon tax’s introduction to a feasibility study on the heat exchanger (HE) replacement project at PT Kaltim Methanol Industri, Indonesia. The project was aimed to avoid methanol release as much as 48.88 MT/year. The release of methanol can also be associated with CO2 emission with an emission factor of 0.6 ton CO2e/ton methanol. Here, we investigated the influence of inclusion and exclusion of carbon tax to monetize the CO2 release. From the project investment point of view, carbon tax inclusion is expected to increase the cost-saving. Introduction of the carbon tax as high as 10 USD/ton CO2e with 5% annual increase gives IRR value of 7.06% with Payout Time (PoT) of ca. 11 years. The IRR value without carbon tax scenario is 6.68 % with the same range of PoT. Hence, the inclusion of carbon tax may increase the feasibility of the project. This work has demonstrated the positive role of the carbon tax to increase the feasibility of a project which inlines with the national initiatives to curb the CO2 emission from chemical industries. It is also worth noting that introduction of carbon tax should be accompanied by a reorganization of government incentives, including several financial policies to create a conducive atmosphere for investors in Indonesia.

Stability Test and Regression Analysis of EU Carbon Tax on Coastal Trade

Wang, L., 2020. Stability test and regression analysis of EU carbon tax on coastal trade. In: Al-Tarawneh, O. and Megahed, A. (eds.), Recent Developments of Port, Marine, and Ocean Engineering. Journal of Coastal Research, Special Issue No. 110, pp. 227–230. Coconut Creek (Florida), ISSN 0749-0208.Things are happening in the context of the implementation of the carbon tax in the European Union. This paper focus on the current situation of Sino-European trade, and is expected to discuss the impact of EU carbon on Sino-Europea trade by qualitative and quantitative analysis. The empirical analysis shows that since the recent introduction of carbon tax in EU countries, carbon tax has been increasing, and carbon tax has been added to commodity prices, which directly leads to an increase in export trade. This conclusion is slightly in conflict with traditional trade theory. Due to the imperfect collection mechanism in the implementation of the carbon tax in the EU, the reduction in trade volume caused by the decrease in export trade volume may be less than the increase in trade volume caused by the increase in prices, thus increasing the volume of export trade.

GREEN TAX SHOCKS AND ECONOMIC GROWTH

The purpose of this paper is to examine the long-run relationship between green tax and economic growth. Specifically, it utilizes the sign-restrictions structural vector autoregressions to examine whether green tax is growth-enhancing or growth-inhibiting. Using data on the Danish economy for the period 1975-2017, the results reveal that green tax shocks trigger opposite movements in non-renewable and renewable energy consumption, and a mild transitory decrease in economic growth. The study also compares green tax shocks in the pre- and post-Carbon tax periods and finds that how the Danish economy experiences green tax shocks has not fundamentally changed since the introduction of Carbon tax in 1992. Taken together, the findings suggest that green tax is effective in increasing reliance on renewable energy while decreasing non-renewable energy consumption without seriously inhibiting economic growth. Keywords: green tax, carbon tax, economic growth, structural var JEL Classifications: E62; O44; Q43 DOI: https://doi.org/10.32479/ijeep.8660

Evaluating the performance of carbon tax on green technology: evidence from India.

Introduction of carbon tax and the resulting National Clean Energy and Environment Fund are seen as important policy reforms in India's quest for achieving energy security and reducing the carbon intensity of energy. This study seeks to evaluate the impact of carbon tax on R&D in energy efficient technologies. To carry out the analysis, the study employed the difference-in-difference technique for the period 2005-2017. The results highlighted that there are less chances of achieving a 'Double Dividend Hypothesis' for carbon tax in India. Except the renewable energy sector, the support initiatives for enhancing energy efficiency have been rather limited and the government's own revenue considerations seem to be dominating. The study holds that the NCEEF should be insulated from the vagaries of fiscal politics and that a strong reformation in guidelines, utilisation and allocation patterns is required to optimally realise the potential of the fund.

신기후체제 대응을 위한 기후기금 조성의 법⋅정책적 과제

On December 12, 2015, the Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC) adopted the Paris Agreement, in which several developed and developing countries all committed to participating in the reduction of greenhouse-gas (GHG) emissions. South Korea has submitted an intended nationally determined contribution (INDC) proposal with a target to cut down 37% greenhouse gas business as usual (BAU) until 2030 in preparation for the 2030 GHG BAU. Under the post-2020 regime, which will be launched from 2021 as the agreement entered into force early, it is expected that efforts to support GHG reduction and adaptation to climate change in developing countries will be accelerated with the utilization of technologies and financial resources of developed countries. South Korea has established the Basic Plan for Climate Change Response and the Basic National Roadmap for Greenhouse Gas Reductions by 2030 to promote the response to climate change at the government level. The Ministry of Science and ICT, as the National Designated Entity designated by the UNFCCC, has come up with middle and long-term strategies for climate technology cooperation. South‐Korea has an abundance of energy-consuming industries to support its export-oriented industrial structure; it is thus expected that achieving the GHG reduction target will incur a considerable cost. Moreover, in order to meet the reduction target (11.3%) of the intended nationally determined contribution proposed by South Korea, it is necessary for South Korea to actively promote projects that can achieve GHG reduction achievements, and financial resources are needed as leverage to reduce risks that can occur in the early stages of projects and attract private sector investment.BR This paper summarizes the theoretical discussions on climate finance and conducted a comparative analysis on the status of the funds related to climate change response in the UK, Germany, Japan and Denmark. Through this, we proposed the legal and policy tasks that should be carried forward to raise public funds that can be used for creation of new industries related to climate change as well as to reduce GHG emissions in South Korea.BR The Climate Change Countermeasures Act, which has been proposed by the National Assembly of South-Korea, stipulates the establishment of funds but there is no additional funding except for general account. In this regard, it is also possible to take measures such as the introduction of carbon tax or the collection and use of royalties through technology research and development projects for climate change, such as Industrial Technology Innovation Promotion Act. In addition, since funds are used in various fields such as domestic greenhouse gas reduction, technology development, and overseas projects, it is necessary to establish a system in which various ministries cooperate with the operation of the fund.

International Pressure of the Introduction of Carbon Tax and U.S. Response: Policy Implications for Korea

International Pressure of the Introduction of Carbon Tax and U.S. Response: Policy Implications for Korea

A Study on the Introduction of Carbon Tax and Chinese Governmemt's Policy Response in Accordance with Establishment of the UNFCCC System

A Study on the Introduction of Carbon Tax and Chinese Governmemt's Policy Response in Accordance with Establishment of the UNFCCC System

Exploring the potential of introducing technology innovation and regulations in the energy sector in China: a regional dynamic evaluation model

The Chinese government has introduced stricter environmental regulations to address the rapid increase in Greenhouse gas (GHG) emissions and environmental deterioration associated with energy demand. In this research we analyze the potential environmental and socio-economic benefits of introducing such regulations coupled with the promotion of advanced technological innovation for power generation. We selected Chongqing city, one of the most polluted cities in China, as the case study. The study proposes 5 scenarios that range from baseline to technology promotion through the introduction of carbon tax and subsidy schemes and the implementation of regulations for regional air emissions reduction. We constructed a dynamic evaluation model based on an Input–Output (I/O) analysis for the period 2010–2025. The results show an overall benefit on the quality of the environment and energy conservation efforts. The study demonstrates that the introduction of regulations without promotion of technological innovation will dramatically affect economic growth. The results also show that innovations in the energy sector alone will reduce both air pollutants and energy intensity to a certain extent. In this regard the promotion of innovation in other economic sectors is necessary. Another important finding is the fact that the introduction of regulations will actually curb air emissions and energy consumption. This research provides a strong platform for policy makers to realize the urgency and importance of promoting technology innovation through environmental regulations.

Charcoal injection in blast furnaces (Bio-PCI): CO2 reduction potential and economic prospects

The steel industry is under pressure to reduce its CO2 emissions, which arise from the use of coal. In the long-term, the injection of pulverized particles of charcoal from biomass through blast furnace tuyeres, in this case called Bio-PCI, is an attractive method from both an environmental and metallurgical viewpoint. The potential of Bio-PCI has been assessed in terms of its CO2 abatement potential and economic viewpoint. A cost objective function has been used to measure the impact of biochar substitution in highly fuel-efficient BF among the top nine hot metal producers; estimations are based on the relevant cost determinants of ironmaking. This contribution aims to shed light on two strategic questions: Under what conditions is the implementation of Bio-PCI economically attractive? Additionally, where is such a techno-economic innovation likely to be taken up the earliest? The results indicate the potential for an 18–40% mitigation of CO2. Findings from the economic assessment show that biochar cannot compete with fossil coal on price alone; therefore, a lower cost of biochar or the introduction of carbon taxes will be necessary to increase the competitiveness of Bio-PCI. Based on the current prices of raw materials, electricity and carbon taxes, biochar should be between 130.1 and 236.4USD/t and carbon taxes should be between 47.1 and 198.7USD/t CO2 to facilitate the substitution of Bio-PCI in the examined countries. In regard to implementation, Brazil, followed by India, China and the USA appeared to be in a better position to deploy Bio-PCI.

Preliminary Perceptions on the Introduction of Carbon Tax in Australia

Preliminary Perceptions on the Introduction of Carbon Tax in Australia

Carbon tax and energy resource in Indian power sector

Global warming is a universal problem nowadays. The recent United Nations Climate Change Conference in Copenhagen was partially successful because all participating countries realised the damages caused by greenhouse gas (GHG) emissions and promise to mitigate in the future course of time. India has also promised to reduce 20% to 25% of these emissions up to the year 2020. To implement this, there is a need of solid policy formulation and alternative methodologies. This paper presents the introduction of carbon tax in Indian power sector to mitigate the GHG emissions. Three scenarios with different carbon taxes and various energy saving cases have been developed using MARKAL energy system model. The simulation results show that full exploitation of energy conservation potential with 30% carbon tax lead to a sustainable development. About 72% CO2 emission will be reduced in the year 2045 as compared to the base case scenario. Other scenarios also show significant reduction in atmospheric emission.

Reflections on Carbon Tax on Way to Carbon Dioxide Emissions

Carbon dioxide is one of the most important greenhouse gases which have caused the global warm. Reducing greenhouse gases, especially carbon dioxide emission, has become the hot spot of environmental issues in the current society of international world. Based on the analysis of carbon dioxide emissions in the global environment and the present introduction of carbon tax as a tool for reducing carbon dioxide emissions, the paper, on a unique perspective, compared some related conceptions in deep and analyzed the principle of the means in reducing carbon dioxide from the perspective of macro and micro. Finally, the paper gave the conclusion of China's carbon tax in the current implementation of specific measures.