Effects and burdens of a carbon tax scheme in Thailand

Effects and burdens of a carbon tax scheme in Thailand Eurasian Econ Rev https://doi.org/10.1007/s40822-018-0100-x ORIGINAL PAPER Anan Wattanakuljarus Received: 8 December 2017 / Revised: 24 March 2018 / Accepted: 4 April 2018 © Eurasia Business and Economics Society 2018 Abstract This study examines how a 20% reduction in carbon emissions in Thai- land by 2030—as pledged by Thailand’s Intended Nationally Determined Contribu- tions (INDC) at the 21st Conference on Climate Change (COP21, Paris)—would cause economy-wide effects and burdens on Thai households. A carbon tax scheme is used to simulate such an outlook, given projected business-as-usual market con- ditions throughout the period. Overall, the simulation results show that a decline in social welfare and household consumption levels is influenced by higher com - modity prices and lower primary factors: labor income or returns to capital. The scarcity of primary factors and the existence of social transfers have little influence on the reduction of carbon emissions. The simulation contains two circumstances: one without social transfers and the other with them. In the first case, the welfare effects are progressive when at least one of the two primary factors is inelastic but regressive when both are elastic. In other words, the less both primary factors are employed, the greater are the household burdens. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Eurasian Economic Review Springer Journals

Effects and burdens of a carbon tax scheme in Thailand

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Publisher
Springer Journals
Copyright
Copyright © 2018 by Eurasia Business and Economics Society
Subject
Economics; Economics, general
ISSN
1309-422X
eISSN
2147-429X
D.O.I.
10.1007/s40822-018-0100-x
Publisher site
See Article on Publisher Site

Abstract

Eurasian Econ Rev https://doi.org/10.1007/s40822-018-0100-x ORIGINAL PAPER Anan Wattanakuljarus Received: 8 December 2017 / Revised: 24 March 2018 / Accepted: 4 April 2018 © Eurasia Business and Economics Society 2018 Abstract This study examines how a 20% reduction in carbon emissions in Thai- land by 2030—as pledged by Thailand’s Intended Nationally Determined Contribu- tions (INDC) at the 21st Conference on Climate Change (COP21, Paris)—would cause economy-wide effects and burdens on Thai households. A carbon tax scheme is used to simulate such an outlook, given projected business-as-usual market con- ditions throughout the period. Overall, the simulation results show that a decline in social welfare and household consumption levels is influenced by higher com - modity prices and lower primary factors: labor income or returns to capital. The scarcity of primary factors and the existence of social transfers have little influence on the reduction of carbon emissions. The simulation contains two circumstances: one without social transfers and the other with them. In the first case, the welfare effects are progressive when at least one of the two primary factors is inelastic but regressive when both are elastic. In other words, the less both primary factors are employed, the greater are the household burdens.

Journal

Eurasian Economic ReviewSpringer Journals

Published: May 29, 2018

References

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