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Two carbon tax scenarios are compared with the base case.
For a 10 per cent reduction in every period, a unit carbon tax of 18 to 20 yuan per ton is required.
Investing carbon tax revenues in carbon-abating technologies can give substantial carbon savings.
Holding regional real government and corporate savings constant, additional carbon tax revenue is distributed back to households.
On the other hand, the choice of substitution elasticities among productive inputs and the rule used for redistributing carbon tax revenue do influence the results.
The results show that a carbon tax would have limited effectiveness in controlling carbon emissions.
We examine the impact of a carbon tax on carbon emissions and growth in the economy.
The above expressions show that the economic welfare of country 2 will be adversely affected by the carbon tax.
With few sectors, substitution possibilities are inherently limited in response to a carbon tax, raising the costs of adjustment.
These results are similar to the ones derived in our study in the sensitivity analysis where all carbon tax revenue is redistributed to corporations.
If public health improves as expected with a carbon tax, the expression is positive.
In the event where the households are compensated, private welfare can improve significantly under a carbon tax.
In the case of global climate change, for example, a number of countries have introduced a carbon tax.
Their effects will therefore be similar to the effects of an actual carbon tax.
The integrated model can assess the combined impact of a carbon tax and of investments in carbon-saving options.
