• KDI Journal of Economic Policy
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• v.45 no.2
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• pp.1-20
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• 2023

Carbon pricing is in the spotlight as an economically efficient policy to limit global warming and reduce greenhouse gas emissions. We examine how policymakers can improve social acceptance of a carbon tax, which is the main obstacle in implementing the policy. We conduct a survey experiment to analyze this topic and adopt two different interventions focusing on the use of revenue from a carbon tax and types of information to be provided. Regarding revenue use, we consider 1) tax reductions, 2) lump-sum transfers, and 3) green project investments. For information types, we focus on 1) the economic value of a carbon tax, and 2) the environmental value of a carbon tax. We find that lump-sum transfers have negative impacts on social acceptance of a carbon tax. For those who perceive climate change as a serious issue, moreover, both lump-sum transfers and tax reductions have negative impacts on acceptability. Regardless of the type of information provided, on the other hand, the social acceptance of a carbon tax is increased after the provision of information. Furthermore, the impact of information provision on the social acceptance interacts with the revenue use impacts. When the revenue use and the type of information are consistent with the aim of the policy, the effects of these strategies can be amplified.

• Environmental and Resource Economics Review
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• v.19 no.1
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• pp.45-80
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• 2010

A computable general equilibrium model has been used to analyze the likelihood of double-dividend effect in Korean economy. Revenue neutral introduction of carbon tax through the reduction in payroll tax and corporate income tax had been experimented in this regard. Double-dividend measured by income shows the existence of weak double-dividend in both cases, while double-dividend measured by consumption level could not be found in case of carbon tax with corporate income tax reduction. A notable result is in the employment measured double-dividend effect as the sizable strong double-dividend effect were found in the case of carbon tax with payroll tax reduction.

• Environmental and Resource Economics Review
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• v.21 no.2
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• pp.371-416
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• 2012

This study has developed Computable General Equilibrium (CGE) model reflecting endogenous growth economic theory, with the aim of analyzing double dividend hypothesis. This study analyzes possibility of economic growth and environmental improvement at the same time when government recycles the revenue of carbon tax to reduce existed taxes such as consumption tax, labor income tax, corporate tax. It also assesses the case of subsidy on R&D investment of renewable energy. With new and renewable generation technology adopted and disseminated, GDP loss would be lessened to a great degree. Tax recycling would provide economic gain by reducing distortion existed in the existing fiscal structure. The magnitude of economic gains from carbon tax recycling is biggest for recycling into corporate tax, and labor income tax, and then consumption tax in this order. It is also shown that double dividend effects occur in dynamic terms when government uses a carbon tax revenue to subsidize on R&D investment. At the end of the analysis period, emissions reduction would not result in GDP loss but in GDP gain. In particular, recycling into R&D increase would produce the largest and fastest GDP gain. Thus, implementing emissions reduction target would require careful consideration of economic effects by various policy instrument, including carbon tax.

• Environmental and Resource Economics Review
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• v.9 no.5
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• pp.973-997
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• 2000

The carbon tax is one of several measures to reduce the green-house gases emitted from burning the fossil fuels, which has been much discussed internationally. The analyses of the effects of a carbon tax on individual countries have been carried out by applying the computable general equilibrium(CGE) models, especially models with the assumption of non-existence of scale economies. However, the introduction of scale economies to CGE models changes the simulation results drastically. In this paper, two CGE models are used to compute and compare the economic and $CO_2$ reduction effects of a carbon tax, one of with is the model with scale economies and the other is without scale economies. One of main results is that the analysis using the CGE model without scale economies may underestimate the effects of a carbon tax on GDP and reducing the emission of $CO_2$.

• Journal of Korea Society of Industrial Information Systems
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• v.28 no.6
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• pp.115-129
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• 2023

This study compares and analyzes domestic and international carbon prices through CPS, which represents the level of carbon pricing. The results show that countries implementing carbon taxes had lower carbon intensity compared to those that did not. The introduction of a carbon tax is expected to enhance energy efficiency and reduce carbon emissions. As the carbon price rises to the level required for carbon neutrality, CPS decreases significantly, particularly in the residential and commercial sectors. Therefore, it is necessary to introduce a carbon tax in the country to reach the required carbon price level for carbon neutrality, with a priority on introducing it in the residential and commercial sectors.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.58
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• pp.329-351
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• 2013

Since the Kyoto Protocol was released in 2005, there has been a number of mechanisms about funding and how to allocate the burdens. The UNFCCC(United Nations Framework Convention on Climate Change)have discussed establishing an international fund to support the reduction of a greenhouse gas. As the availability of adaption finance for developing countries increase, it's needed for a way of prioritizing countries. This article analyzes the carbon reduction system that includes a emission trading scheme, a carbon tax and examines GCF(Green Climate Fund)'s role and needs. A solution to finance Green Climate Fund is more preferred a harmonized carbon tax that across all nations with carbon tax. Especially the role of industrialized countries is important that based on their historical responsibility for fossil fuel emission. That is, they should get more shares of the global costs than developing countries.

• Korean System Dynamics Review
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• v.7 no.2
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• pp.149-170
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• 2006

In this paper, an energy-economy-environment dynamic simulation model was developed to using system dynamics methodology. It describes current energy-economy-environment systems and forecasts changes caused by levying of carbon tax. The model is composed of three modules: an energy module, an economic module and an environmental module. Variables are interrelated in each module, and three modules are linked by several linkage variables. Setting up the linkage variables is an important factor for the composition of the model. The simulation result shows a change of the national GDP, usage of energy, and $CO_2$ emissions under levying and reinvestment of carbon tax considering various scenarios for the charging cost.

• International Area Studies Review
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• v.15 no.1
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• pp.495-522
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• 2011

In this study, a vector error correction model is considered to analyze the correlations among carbon emission, energy use and economic growth using countries adopted carbon tax such as Finland, Netherland, Newzealand, Sweden, and United Kingdom in the short-run dynamics. In order to examine the effect of a carbon tax on the carbon emission specifically for Finland, New zealand and Sweden in the cointegration coefficients among variables, the economic growth equation has the statistically significant negative value(positive values for Netherland and UK). This implies that in the case of the deviation from a long-run equilibrium all variables except carbon emission and energy use are adjusted toward decreasing. After introducing a carbon tax, all variables for Finland, New zealand and Sweden appear to be negative and positive values for the other countries. The evidence that the carbon emission and energy use have been decreased is very weak in the short-run for Finland, New zealand and Sweden but the economic growth is on the decrease after a carbon tax. However, the empirical results show that the increase in carbon emission leads to the decrease in production for Netherland and UK. This implies that for reducing the carbon emission, these countries need to provide more aggressive policies.

• Environmental and Resource Economics Review
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• v.12 no.2
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• pp.245-274
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• 2003

This paper analyzes the economic and environmental impacts of domestic policy to reduce greenhouse gas emissions by focusing on carbon tax, domestic emissions trading and the mixture of these policies. By utilizing a dynamic CGE model, KORTEM, this study shows that the economic cost under carbon tax is projected to be higher than that under emission trading. It is because under carbon tax scheme each emitter in economy must meet its emission target regardless of the abatement cost. On the other hand, emission trading allows emitters to reduce the marginal cost of abatement through trading of emission permits. In designing policy portfolio to address the climate change problem in Korea, therefore, this paper proposes the introduction of domestic emission trading scheme as the main domestic policy Instrument.

• Journal of Environmental Impact Assessment
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• v.8 no.4
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• pp.59-72
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• 1999

The purpose of the study is to propose the concrete and realistic alternative measures for $CO_2$ emission reduction on commercial sector. To achieve the purpose, this study adopted AIM/KOREA simulation model modified from AIM(Asia-Pacific Integrated Model) originally developed by Japan National Environmental Research Institute. The results of simulation demonstrate that the $CO_2$ emission from the commercial sector in 1995 was estimated 864 million TC(tons of carbon); however, according to the base scenario, $CO_2$ emission in 2020 is expected to be increased to 1,872 million TC, which is 2.17 times greater than that in 1995. In order to mitigate the ever-increasing $CO_2$ emission, the results of AIM/KOREA simulations under various scenarios showed that the 30-thousand-won carbon tax scenario does not successfully motivate the selection of advanced technology; however, with the 300-thousand-won carbon tax, a substantial amount of $CO_2$ emission reduction by 1.69 million TC from the BaU((Business-as-Usual)scenario is expected to be achieved by year 2020. Such substantial reduction of $CO_2$ emission under the 300-thoudsand-won carbon tax scenario is due to the introduction of advanced technology, such as use of condensing boilers, forced by heavier carbon tax. Under the scenario that presumes the maximum introduction of gas-burning industrial appliances, an 2.66 million TC of $CO_2$ reduction was expected. The results of this study suggest that the $CO_2$ emission reduction measures can be interpreted in many different views. However, if people and industries are fully aware of the economic benefit of energy saving, a certain level of $CO_2$ reduction by a successful introduction of advanced energy saving technology appears to be achieved without carbon tax or subsidies.