Carbon tax and low-carbon credit: Which policy is more beneficial to the capital-constrained manufacturer's remanufacturing activities?

Remanufacturing has attracted much attention for its enormous potential in resource recycling and low-carbon emission reduction. To investigate the effects of different government intervention policies on remanufacturing and carbon emissions, two profit maximization models of the capital-constrained manufacturer under carbon tax and low-carbon credit policies are constructed respectively. Then, through theoretical and numerical analyses, some significant findings are drawn: (1) Both carbon tax and low-carbon credit policies can encourage capital-constrained manufacturers to produce more remanufactured products, but which intervention policy is more advantageous also depends on the carbon emission cost of new products or financing cost of the remanufactured products. (2) Although carbon tax policy can effectively control carbon emissions, it is always at the expense of both capital-constrained manufacturers and consumers; while low-carbon credit policy can help capital-constrained manufacturers achieve the goal of win-win economic and environmental benefits when the remanufacturing carbon savings advantages are more apparent. (3) From the perspective of consumer benefits, carbon tax is more advantageous when the consumer willingness to pay for remanufactured products is higher; otherwise, low-carbon credit policy should be implemented. (4) The higher the environmental damage coefficient is, the more it can highlight the advantages of the two intervention policies in social welfare enhancement, especially the carbon tax policy; and when the environmental damage coefficient is given, the stronger the consumers' willingness to pay for remanufactured products is, the more it is conducive to reducing the negative effects caused by the carbon tax or low-carbon credit policy in social welfare enhancement, or increasing the corresponding positive effects. Based on above findings, some managerial insights and policy implications are provided to capital-constrained manufacturers and policy-makers.

carbon trading in China: which is better for promoting sustainable development of remanufacturing companies?

To accelerate achieving carbon neutrality, the promotion of low-carbon development in the manufacturing industry has been facilitated by the government's implementation of policies such as carbon taxation and carbon emissions trading. These measures have been put in place to reduce carbon emissions and enhance sustainability within the manufacturing sector. Remanufacturing is an important direction for the low-carbon transformation of enterprises, and improving remanufactured product quality is crucial to the sustainability of remanufacturing enterprises. To elucidate the influence of policies aimed at reducing carbon emissions on the quality of remanufactured products, we developed a game model involving three key players: the original equipment manufacturer (OEM), the remanufacturer (IR), and retailers. This model was constructed based on the heterogeneous consumer demand for both new and remanufactured products. The study delved into the effects of various governmental policies aimed at reducing carbon emissions on the quality-related decisions made by remanufacturing enterprises. Our primary focus was on the implementation of two specific policies: a high-level carbon taxation policy and a carbon trading policy characterized by elevated carbon pricing. These policies create a favorable environment for remanufacturers (IR) to enhance the quality of their products. The sales of remanufactured products are influenced by the purchasing preferences of consumers, and carbon reduction policies can be effective in reducing the total environmental impact of manufacturing. Carbon trading policy is most conducive to environmental protection and achieves a win-win situation for economic and environmental benefits for OEMs and IRs when the carbon tax per unit is compared with the carbon trading price. Hence, this situation is favorable for the sustainable growth of existing remanufacturing businesses. Consequently, the government's requirement for subsidies to enhance the quality of remanufactured products and boost the competitiveness of IRs in the market becomes less pronounced.

A stochastic dynamic programming model for the optimal policy mix of the carbon tax and decarbonization subsidy

Carbon tax and decarbonization subsidy are an effective policy mix in reducing carbon emissions. However, there is a research gap between the deterministic and static analysis related to carbon reduction policy instruments and the dynamic green transition influenced by stochastic factors. This research investigates the optimal dynamic carbon reduction strategies that develop green technologies, increase abatement inputs, and reduce carbon emissions by applying the stochastic optimal control theory. Firms that are incentivized by decarbonization subsidies and regulated by carbon tax choose optimal closed-loop control strategies of abatement inputs to achieve profit-maximizing objectives with carbon reduction constraints. The explicit solutions of the optimal carbon tax and decarbonization subsidy are provided. The simulation results illustrate that the optimal policy mix is feasible in the effective period when the carbon emission decreases significantly, which indicates that the abatement policy mix can effectively promote carbon reduction. Our results reveal that the dynamic optimal policy mix is conducive to achieving carbon abatement goals with capital uncertainty. The government should implement a dynamic carbon tax and decarbonization subsidy policy mix simultaneously associated with optimal closed-loop carbon reduction strategies. Firms with asymmetric decarbonization efficiency can transfer progressively into a cleaner productive pattern.

Contribution of the carbon tax, phase-out of thermoelectric power plants, and renewable energy subsidies for the decarbonization of Chile - A CGE model and microsimulations approach

There are various climate policies to decarbonize the energy matrix of a country. In the case of Chile, a carbon tax of 5 USD/tCO2 was initially implemented, and later, a schedule was established for the phase-out of coal-fired thermoelectric plants, all the above in the absence of subsidies for non-conventional renewable energy (NCRE). This study uses a computable general equilibrium (CGE) model and microsimulations to assess the contribution of current climate policies and other more demanding scenarios that accelerate the decarbonization of the Chilean energy matrix, considering economic, environmental, and distributional impacts. Specifically, carbon taxes are simulated with and without complementary climate policies (phase-out of coal-fired power plants and NCRE subsidies). The results show that the scenarios that combine the three climate policies generate a greater decrease in greenhouse gas emissions (40.4% ∼ 57.5%). Besides, the drop in GDP is more pronounced when coal-fired thermoelectric plants phase out (0.3% additional), and NCRE subsidies contribute to moderately reducing emissions. However, NCRE subsidies reduce the negative effect on households' expenditure and income, especially in the poorest quintile. Finally, microsimulations show marginal changes in income distribution and an increase of up to 0.4 percentage points in the poverty rate.

Overcoming public resistance to carbon taxes: A cost-efficient solution built on a pre-existing reward-based climate policy

A carbon tax is effective at curbing carbon emissions, but it is met with low public support due to its high personal cost. Investigations have been conducted to reform carbon tax design to ease the burden on individuals by providing economic compensation, but the cost for governments is high. We propose a new cost-efficient solution by introducing people to a pre-existing reward-based climate policy to create a sense of economic compensation. Across three experiments, we show that the presence of a pre-existing reward-based climate policy increases participants' support for a carbon tax, especially when the innate connection between the two policies is made salient and people regard the reward as compensation for the tax. In contrast, if people are distracted from sensing this interrelationship, support for the tax does not differ from when it is introduced alone. Applicability of this approach was tested under different conditions where the pressure to reduce carbon emission is either high or low.

A game-theoretic approach to designing carbon regulations in a duopoly freight transportation market: Road and multimodal road-rail competitive systems

Since the transportation industry produces remarkable carbon emissions worldwide, governments aim to curb these emissions by implementing different carbon regulations. However, little is known regarding how the heterogeneity of transportation systems should be exploited to design carbon regulations. To fill this research gap, the present article formulates carbon cap-and-trade and carbon offset regulations to reduce total carbon emissions produced by road and multimodal road-rail freight transportation systems (FTSs) in a duopoly market; the latter is regarded as a green, energy-efficient transportation mode. A novel procedure is suggested to allocate initial carbon caps that is a hybrid of both benchmark and grandfathering methods. The procedure allows the government to exploit the energy efficiency of the multimodal system, when targeting a reduction of total carbon. Then, a game-theoretic approach is adopted to implement the mentioned carbon regulations. A government, as a Stackelberg leader, maximizes a social welfare function containing economic, social, and environmental dimensions. Under the cap-and-trade regulation, a Nash bargaining process is proposed to trade carbon permits between the FTSs, as the followers, for updating their initial caps. The equilibrium outputs of the two mentioned carbon regulations and a carbon tax regulation are compared. The findings based on an experimental analysis suggest that the cap-and-trade (carbon offset) is the optimal and energy-efficient regulation from the social (economic or environmental) perspective. In terms of policy implications, our findings indicate that the development of a marketplace infrastructure for trading carbon permits is not justifiable under the economic and environmental perspectives of the government.

How do carbon trading price and carbon tax rate affect power project portfolio investment and carbon emission: An analysis based on uncertainty theory

Responding to the social, economic, and environmental call to resolve current sustainability challenges, the concern about carbon dioxide emission reduction should be incorporated into the power investment decision process. Reflecting the low carbon emission requirement, this paper proposes a new optimization model for power project portfolio selection that simultaneously considers both of carbon emission trading scheme and carbon tax imposition. In this model, the initial investment outlay, the power sale price, the carbon trading price, and carbon tax rate are treated as uncertain variables considering the fast-changing environment and complex market situation. Incorporating the constraint on whether the carbon quota is exceeded into the model, two investment strategies are proposed for investors. Using the proposed model, the impact of the rises in carbon trading price and carbon tax rate on the investor's investment strategy selection and the carbon emission is simulated and analyzed through a case study. When the expected carbon price is 203.50 RMB/tCO2-eq or less, a company should invest based on the strategy that annual emissions exceed the quota to obtain a maximum expected NPV which is larger than 408588 million RMB. When future carbon prices are 352.00, 500.50 and 649.00 RMB/tCO2-eq, the government should impose carbon tax rates of 30, 30, and 40 RMB/tCO2 on a power company, respectively, to obtain carbon emission reduction effect. At last, to see the contrast effect of the results from simultaneous implementation of both carbon trading and carbon tax, the results considering the carbon trading alone or carbon tax alone are discussed, respectively.

Neutralizing the surging emissions amidst natural resource dependence, eco-innovation, and green energy in G7 countries: Insights for global environmental sustainability

The unrelenting surge in global warming in the current era suggests the inevitable need for governments across the globe to embark on policy measures that will help flatten the curve of the surging emissions. Consequently, the concept of carbon neutrality has become a vital policy approach for countries to achieve sustainable development. The present study extends the debates on carbon neutrality by examining the extent to which prominent factors such as natural resource dependence, eco-innovation, and green energy (biofuel and renewable energy) facilitate or hinder strides toward achieving carbon neutral environment in G7 economies. The study considers the additional roles of carbon tax, environmental policy stringency, and financial development in longitudinal data ranging from 1997 to 2019. The verification of the stated hypotheses hinges on a battery of estimators comprising cross-sectional ARDL, common correlated effects mean group, augmented mean group, and panel quantile regression. The empirical findings show that green energy, carbon tax, and environmental policy support the drive towards carbon neutrality by reducing the stock of CO2 emissions. On the other hand, natural resource dependence and financial development hinder the carbon neutrality agenda by escalating the surge in CO2 emissions. Robustness analyses are conducted from the angle of an additional outcome variable and estimation technique of which the results corroborate the empirical regularity of the main findings. Policy implications are derived from the empirical findings.

Sustainable production-inventory system for perishables under dynamic fuel pricing and preservation technology investment

In the production and inventory management of perishables, environmental considerations are gaining prominence. By reducing carbon emissions from various supply chain processes, such as production, transportation, warehousing, and waste disposal of perishable items, the present study aims to minimize the overall cost to the manufacturer through an optimized investment in green technology. Additionally, cycle time and preservation technology investment are optimized to decrease deterioration and revenue loss in order to minimize cost. The originality of the present research lies in the following considerations. Due to an increase in fuel price, the transportation cost of every subsequent order will also increase, thus resulting in an increase of average delivery cost in a production cycle. We investigate the impact of changes in fuel prices on transportation costs and production inventory model policies due to the volatile nature of fuel prices. The function of transportation cost can be used to calculate transport costs in the future. The deterioration rate is a random variable with a double triangular distribution. Precisely, the demand for any product depends on the product's price; therefore, linear price-dependent demand is considered. Per unit production cost is a function of direct material cost, tooling cost, and manpower cost. Taking into account all the aforementioned parameters, this paper simultaneously optimizes green technology investment, preservation investment, and cycle time. To achieve the solution of the proposed sustainable production system, an optimization technique for the nonlinear function is employed. Finally, numerical experiments are conducted to validate the model. A special case of a numerical example demonstrates that the expected value of the total average cost is reduced by 10.723% when investments are made in both green and preservation technology, whereas investments in green technology alone result in a cost reduction of only 2.15%. Then, managerial implications and a discussion of findings are proposed after a sensitivity analysis that examines the model's response to key parameter variation. The study concludes with a discussion of the limitations of current work and possible future scopes.

The effects of carbon pricing instruments on carbon emission reduction in China's refining industry: an evolutionary game between heterogeneous refineries

Carbon emissions from the refining industry are receiving increasing national attention. In view of long-term sustainable development, a carbon pricing mechanism oriented to carbon emission reduction needs to be developed. Currently, the two most common carbon pricing instruments are emission trading system and carbon tax. Therefore, it is important to study the carbon emission problems in the refining industry under emission trading system or carbon tax. Based on the current situation of China's refining industry, this paper constructs an evolutionary game model for backward and advanced refineries to explore which instrument is more effectively applied in the refining industry and identify the effective factors that can promote carbon emission reduction in refineries. According to the numerical results, if the heterogeneity of enterprises is small, the government's implementation of an emission trading system is the most effective measure, while carbon tax can only ensure that the equilibrium strategy solution is (1,1) when the tax rate is high. If the heterogeneity is large, the carbon tax policy will not have any effect, indicating that government implementation of an emission trading system is more effective than the carbon tax. In addition, there is a positive relationship between carbon price, carbon tax, and refineries' agreement to carbon emission reduction. Finally, consumers' preference for low-carbon products, R&D investment level, and R&D spillover effect have nothing to do with carbon emission reduction. Only by reducing refinery heterogeneity and improving the R&D efficiency of backward refineries can all enterprises agree to carbon emission reduction.

Research on the articulated coupling effect of carbon tax policy under resource endowment in China

The carbon tax is a policy tool that internalizes external costs through a tax mechanism, which helps to reduce the consumption of fossil energy and lower carbon dioxide emissions. China, as the largest carbon emitter, introducing a carbon tax can further enhance the effectiveness of emission reduction. However, the introduction of a carbon tax may exacerbate contradictions in other aspects of the social system. To this end, the paper establishes a dynamic model of the carbon tax system by combining grey system theory and the IPAT model and then explores the coupling effect of the carbon tax on the economy, energy, and environment under the premise of China's resource endowment. It is found that carbon tax will not only distort consumer behavior but also aggravate the degree of capital market distortion. In the time-series simulation, it is found that the emission reduction efficiency of the carbon tax will show an oscillation decline. The carbon tax undermines the carbon peak target by dampening demand for energy consumption. In addition, we also find that the change of energy structure is the root of driving the failure of the "Jevons Paradox" and the realization of the "environmental Kuznets curve," and the panel data of energy and economy are only the manifestation of these two phenomena. China needs to adjust its energy structure to achieve its carbon peaking target. These results are helpful for policymakers to rationally view the carbon peaking target and formulate reasonable emission reduction policies.

Economic perspectives and policy insights on carbon capture, storage, and utilization for sustainable development

Carbon capture storage and utilization (CCSU) has the potential to become a key tool to help mitigate climate change, thus, aiding in achieving the objectives of the 2015 Paris Agreement. Even though the relevant remediation technology has achieved technical maturity to a certain extent, implementation of CCSU on a larger scale is currently limited because of non-technical parameters that include cost, legalization, lack of storage reservoir, and market mechanism to penalize CO₂ emitter. Among these, cost emerges as the primary barrier to the dissemination of CCSU. Hence, necessary policy frameworks and incentives must be provided by governing agencies to enable faster dissemination of carbon capture and utilization (CCU) and capture and storage (CCS) globally. Meanwhile, strict implementation of a carbon tax across nations and market demand for products generated using captured CO₂ can aid in the fast adoption of CCU and CCS. This review assessed the economic feasibility and sustainability of CCS and CCU technologies to identify the barriers to commercializing these technologies.

Effects of China's low-carbon policy under stochastic shocks-a multi-agent DSGE model analysis

China has announced a target of achieving carbon peaking by 2030 and carbon neutrality by 2060. Therefore, it is important to assess the economic impacts and emission reduction effects of China's low-carbon policies. In this paper, a multi-agent dynamic stochastic general equilibrium (DSGE) model is established. We analyze the effects of carbon tax and carbon cap-and-trade policies under both deterministic and stochastic conditions, as well as their ability to cope with stochastic shocks. We found that (1) from a deterministic perspective, these two policies have the same effect. Every 1% cut in CO₂ emissions will bring a 0.12% output loss, a 0.5% drop in demand for fossil fuels, and a 0.05% rise in demand for renewable energy; (2) from a stochastic perspective, effects of these two policies are different. This is mainly because economic uncertainty does not change the cost of CO₂ emissions under a carbon tax policy, but it does change the price of CO₂ quotas and the emission reduction behaviors under a carbon cap-and-trade policy; (3) from an economic volatility perspective, both two policies can act as automatic stabilizers. Compared to a carbon tax, a cap-and-trade policy can better ease economic fluctuations. The results of this study provide implications for policy-making.

Comparing the impacts of carbon tax and carbon emission trading, which regulation is more effective?

While many literatures have examined the influence of environmental regulation policy, which environmental regulation policy is more effective is still controversial. Taking China and two different economic regions as samples, we explore the effect of two popular environmental regulation policies, that is carbon tax and carbon emission trading, by a multi-regional environmental dynamic computable general equilibrium model. The results show that for the economic development, the carbon emission trading outperforms the carbon tax for the carbon emission trading will generate the lower economic cost. But for the emission reductions, the carbon tax outperforms the carbon emission trading for the total emissions from 2020 to 2030 are smallest when introducing carbon tax policy. We further study the effect of environmental regulation on different industries. It is found that the environmental regulation has a more obvious effect on energy industry, heavy industry and transport service industry.

Health benefits from the reduction of PM2.5 concentrations under carbon tax and emission trading scheme: a case study in China

Climate policies could improve air quality, thereby generating health benefits and thus increasing labour input for economic growth. Nevertheless, health benefits are usually overlooked in evaluation frameworks of climate policies. In this paper, a dynamic recursive computable general equilibrium (CGE) model is adopted to define how climate policies are related to air pollution, namely [Formula: see text] concentrations. Health benefits of climate policies are divided into reduction of [Formula: see text]-related morbidity and mortality. The CGE model results show that both carbon tax and emission trading scheme (ETS) decrease morbidity and mortality; therefore, under climate policies, [Formula: see text]-related labour loss decreases, and thus increasing labour input triggers an economic boom. Carbon tax generates more health benefits in short term, while health benefits of ETS policy will gradually increase in long term. Hence, we conclude that regarding health benefits, a long-term ETS policy is preferable to a long-term carbon tax. This finding implies that the recently established nationwide ETS market in China is meaningful, as it will generate more health benefits in future. Nevertheless, the quantified health benefits in this paper still cannot compensate GDP loss induced by climate policy implementations, implying that it is a challenging task to unbiasedly model health benefits of climate policies. Hence, we have recommended that the scopes and contents of health benefits should be expanded in evaluations of climate policies.

Simulations for double dividend of carbon tax and improved energy efficiency in the transportation industry

The Chinese visional goal of achieving the "carbon peak" and "carbon neutrality" puts forward higher requirements for low-carbon development in the transportation industry. Seeking appropriate mitigation strategies to develop low-carbon transportation has been an important part of low-carbon economic development. This study develops a CGE model to analyze the impact of carbon-tax implementation on the transportation industry. It designs four carbon tax-recycling scenarios and simulates for double dividend of carbon tax policy. Then, it designs three scenarios including improved energy efficiency and a carbon tax to explore appropriate mitigation strategies combination. The carbon tax will reduce carbon emissions but it will also reduce sectoral outputs. However, carbon tax recycling can alleviate the negative impact on sectoral outputs, meanwhile achieving reducing carbon emissions. The energy rebound effect brought by improved energy efficiency will greatly reduce the carbon emissions reduction effect, but the carbon tax can promote the awareness of emission reduction of consumers and inhibit the energy rebound effect in the transportation industry. Therefore, at the same time of improved energy efficiency, carbon tax policies should be timely formulated to better promote the sustainable development of the varied transport sectors.

How carbon trading policy should be integrated with carbon tax policy-laboratory evidence from a model of the current state of carbon pricing policy in China

China is planning to introduce carbon tax policy to control the carbon emissions of the country better and achieve the "3060 goals", but there is still widespread discussion about how to introduce it and how to combine it with cap and trade. China has already established a national carbon emission trading market; however, there is also disagreement on whether to impose the carbon tax on companies and projects that have been included in scope of cap and trade. This paper adopts the research method of experimental economics to study the effect on social economy and social emission reduction under cap and trade, carbon tax, and carbon tax-carbon trading policies, and analyzes average prices of carbon market under cap and trade and carbon tax-carbon trading policies. The study finds that under the carbon tax-carbon trading policy, carbon emissions cannot be reduced significantly; but the profits of manufacturers will be reduced significantly; meanwhile, this reduction effect is even more severe for high consumption manufacturers; and it will be resulting in a lower average carbon market price under the carbon tax-carbon trading policies than under the cap and trade policy. This paper will provide theoretical suggestions for introducing carbon tax policy into China in the future and make policy recommendations for the better development of China's carbon market.

Choosing the right policy: Factors influencing the preferences of consumption-side personal carbon reduction policies

With the development of the social economy and the improvement of personal income, the government must consider formulating personal carbon reduction policies to reduce carbon emissions from the consumption side. Therefore, it is valuable to understand the public's preferences for different policies and the factors influencing the willingness of policy support, which can help policy selection and promotion. Using data collected from 2801 college students and a multinomial logit model, this study explores the influence of personal and social factors on preferences for three different personal carbon reduction policies (personal carbon trading, carbon tax, and carbon generalized system of preferences). The results show that individuals with higher levels of affluence, social trust, and social norms prefer personal carbon trading; individuals with higher levels of affluence, self-motivation, and social norms prefer carbon tax; individuals with higher levels of low-carbon behavioral attitudes and social trust prefer carbon generalized system of preferences; and low-carbon responsibility, access to low-carbon information, and social equity are beneficial to all three policies. In addition, this study examined the heterogeneity of individuals with different levels of affluence and low-carbon behavioral attitudes. This study compares the differences in influencing factors of policy preferences, clarifies the effects of various personal and social factors, which can help the government to design consumption-side personal carbon reduction policies in the future, and provide a reference for the promotion of corresponding policies.

The individual and combined impact of environmental taxes in Chile - A flexible computable general equilibrium analysis

Many studies simulate carbon taxes with computable general equilibrium (CGE) models, but there is scarce evidence about how other environmental taxes implemented simultaneously reinforce or lessen the impacts. This study aims to determine the individual and combined effect of taxes on CO₂ and other local air pollutants (SO₂, NO_X, and PM) currently applied in Chile. A flexible CGE model is used to sensitize the results, allowing two nested production structures to be compared. Both nested production structures include a high disaggregation of the energy sector that considers different fossil fuels and renewable energies. The results show that environmental taxes reduce between 5.4% and 6.9% of net CO₂ equivalent emissions in the most realistic scenarios. In addition, the carbon tax explains 84%-85% of the drop in net CO₂ equivalent emissions, 81%-82% of the reduction in fossil energy consumption, 76%-78% of the decline in GDP, and generates co-benefits by reducing local air pollutants. The tax on PM emissions is the second more relevant to reduce net CO₂ equivalent emissions, while taxes on SO₂ and NO_X emissions have marginal effects. By comparing the impacts of both structures to previous studies based on microdata, it is concluded that the KL-EM provides the best results.

The effect of carbon tax incidence on household energy demand and welfare in the U.S

This study develops a model based on a general equilibrium framework to assess the excess burden of carbon taxes imposed on energy commodities (electricity and natural gas) among residential sector. The model takes into account labor market distortions from the tax and cross-price effects among energy commodities. Using data from the U.S. Residential Energy Consumption Survey, the own-price and cross-price elasticities of energy commodities are estimated. A substitution effect is found between electricity and natural gas, and omitting this effect would overestimate the excess burden of the carbon tax. The results show that the carbon tax behaves differently in affecting the excess burden for low-, middle-, and high-income households. The excess burden is lower for high-income households than for low-income households at lower pre-determined labor tax rates, but the effect is reversed at higher pre-determined labor tax rates. In addition, the empirical results show that the excess burden is different across the nine U.S. regions, while minor gas price changes have no significant effect on the excess burden.

Exploring the influencing factors of carbon neutralization in Chinese manufacturing enterprises

One of the key issues facing the government in achieving carbon neutrality is what methods can be used to effectively reduce carbon emissions. Taking manufacturing enterprises as an example, this paper studies the carbon emission reduction effects of green technology innovation subsidy (GIS), carbon tax (CT), and carbon emission trading (CET). Under the background of social welfare and carbon emission reduction efficiency, we get the results of optimal carbon emission reduction measures in different environments. The results are as follows: (1) In the initial and mature stage of green technology innovation, GIS is the best choice to improve the degree of green manufacturing and maximize social welfare. CT and CET are the best choice to obtain the highest SE (carbon emission reduction efficiency). (2) In the transitional stage, CET and CT can promote the maturity of green technology. However, with the maturity of green technology, the promotion of green technology has weakened. CT is the best choice to achieve the highest SE. (3) When the carbon tax or carbon trading price is at a high or low level, raising the tax rate or carbon trading price can increase the income of enterprises. Therefore, the government should take measures according to the objectives of different stages. When the goal is to maximize social benefits, GIS is the best choice in the initial stage and transition stage, and CET or CT is the best choice in the transition stage. In the initial stage and fertilization stage, when the highest SE, CT, or CET is the best choice, while in the transition stage, CT is the best choice.

How would the carbon tax on energy commodities affect consumer welfare? Evidence from China's household energy consumption system

Although carbon tax policies can effectively restrain energy consumption and reduce pollution, they will also affect the welfare of residents through a price mechanism. We explore the impact of energy price increases that are caused by possible carbon tax policies on the welfare of residents in China with a quadratic almost ideal demand system (QUAIDS) model. The estimated elasticities show that the income elasticity of coal demand is -0.741 for urban residents, compared to 0.392 for rural residents. The cross-price elasticity shows that China's residential energy consumption has moved up the clean energy ladder. Based on the above reliable elasticity estimates, the welfare effects are analyzed in the residential consumption system. The overall welfare loss for residents increases with the level of carbon tax. A carbon tax on all energy sources is a regressive policy for China, and when the carbon tax rate reaches the world average, of 30 USD/tCO₂e, the welfare loss for low-income and high-income residents is 1.55% and 0.62% respectively. However, the separate imposition of carbon taxes on different energy sources shows the heterogeneity of the welfare impacts of carbon taxes. At the national and urban levels, the distribution effects of carbon taxes are regressive for coal, LPG, and electricity, progressive for gasoline, and distributional neutral for natural gas. In rural areas, however, the welfare distribution effect of the carbon tax on diesel, LPG, and natural gas are progressive, and the welfare effects of carbon taxes on electricity show an inverted U-shaped distribution. Our findings are conducive to the development of a differentiated carbon tax policy by the Chinese government.

Dynamic analysis of a dual-channel closed-loop supply chain with fairness concerns under carbon tax regulation

In this work, we study a dual-channel closed-loop supply chain (CLSC) where the manufacturer sells the new products via one fair caring retailer in the traditional channel and distributes the remanufactured products through her own direct channel in the presence of the carbon tax regulation. After solving the single-period Stackelberg game model by backward induction and analyzing the impacts of key parameters on the optimal pricing strategies and the performance of channel members, a multi-period dynamic Stackelberg game model with heterogeneous players is further established. The local stability of the Nash equilibrium point and complexity properties of the model are investigated by numerical simulation. The results reveal that (1) the retailer's fairness concern degree is negatively related to the optimal wholesale price as well as positively related to the optimal retail price of the new product. A high level of consumer discount perception for the remanufactured product is conducive to the manufacturer obtaining more profits while it is detrimental to the retailer. (2) The excessive value of the price adjustment speed, carbon tax rate or retailer's fairness concern degree has a strong destabilization effect on the system's stability. (3) The manufacturer suffers profit loss while the retailer's utility levels are elevated when the system falls into periodic cycles and chaotic motions. (4) The delay feedback control method can eliminate the chaos effectively in the dual-channel CLSC system.

The impact of carbon tax on financial stability

Climate change will have a significant impact on the financial system, and it is crucial to evaluate the impact of climate risk on the financial system. In view of this, this paper evaluates the impact of climate transition risks on the financial system from the perspective of carbon tax. Based on the micro data of bank and enterprise loans, this paper uses a bottom-up approach to study the systemic risk of the banking sector caused by the carbon tax. Based on the actual data of China's banking sector in 2017, we find that there is an exponential relationship between the carbon tax and systemic risk, and there is a threshold for both the whole banking sector and different types of banks. When the carbon tax is higher than the threshold, systemic risk will increase significantly with the increase of the carbon tax level. At the same time, the results show that the systemic risk caused by the carbon tax has obvious sector heterogeneity and regional heterogeneity. Therefore, in the process of implementing carbon tax policies, the differences between sectors and regions should be taken into account, so as to effectively prevent and control systemic risks in the banking sector while improving the efficiency of carbon tax policies.

Damage Functions and the Social Cost of Carbon: Addressing Uncertainty in Estimating the Economic Consequences of Mitigating Climate Change

Mitigating the effects of human-induced climate change requires the reduction of greenhouse gases. Policymakers must balance the need for mitigation with the need to sustain and develop the economy. To make informed decisions regarding mitigation strategies, policymakers rely on estimates of the social cost of carbon (SCC), which represents the marginal damage from increased emissions; the SCC must be greater than the marginal abatement cost for mitigation to be economically desirable. To determine the SCC, damage functions translate projections of carbon and temperature into economic losses. We examine the impact that four damage functions commonly employed in the literature have on the SCC. Rather than using an economic growth model, we convert the CO₂ pathways from the Representative Concentration Pathways (RCPs) into temperature projections using a three-layer, energy balance model and subsequently estimate damages under each RCP using the damage functions. We estimate marginal damages for 2020-2100, finding significant variability in SCC estimates between damage functions. Despite the uncertainty in choosing a specific damage function, comparing the SCC estimates to estimates of marginal abatement costs from the Shared Socioeconomic Pathways (SSPs) indicates that reducing emissions beyond RCP6.0 is economically beneficial under all scenarios. Reducing emissions beyond RCP4.5 is also likely to be economically desirable under certain damage functions and SSP scenarios. However, future work must resolve the uncertainty surrounding the form of damage function and the SSP estimates of marginal abatement costs to better estimate the economic impacts of climate change and the benefits of mitigating it.

How Do Carbon Taxes Affect Emissions? Plant-Level Evidence from Manufacturing

This paper investigates how carbon taxes affect emissions by examining British Columbia's revenue-neutral carbon tax in the manufacturing sector. We theoretically demonstrate that carbon taxes can achieve emission reductions while increasing production. Recycling carbon tax revenues to lower corporate income tax rates encourages investments, allowing plants to emit less per unit of output. Using detailed confidential plant-level data, we evaluate this theoretical prediction by exploiting the treatment intensity through plants' emission intensity. We find that the carbon tax lowers emissions by 4 percent. Furthermore, we find that the policy had a positive output effect and negative emission intensity effect, suggesting that the carbon tax encouraged plants to produce more with less energy. We provide initial evidence showing how a revenue-neutral carbon tax may achieve emission reductions while stimulating the economy.

Carbon tax policy analysis based on distribution channel strategy

This paper establishes a theoretical model to study the carbon tax policy based on a firm's different distribution channel strategy. First, we examine the firm's optimal distribution channel strategies in the absence of government policy intervention. Then, on the assumption that the firm is owned by the society as a whole and taking into account the environmental impact of the firm's decisions, we describe the product distribution strategy that optimizes social welfare. Through the comparison of the above two situations, we find that without the intervention of government policies, the firm's decision may deviate from the decision that optimizes social welfare. Finally, on the basis of the analysis, we propose a carbon tax policy for retailers in distribution channels under different firm distribution strategies. We hope that with the intervention of carbon tax policy, firm decisions can achieve optimal social welfare.

A comparative study of carbon tax and fuel tax based on panel spatial econometric model

The balance between economic development and environmental governance has always been the focus of attention, and this has become a key issue facing in China. In recent years, the means of improving the environment through taxation are common, and it is more in line with China's national conditions. Carbon tax and fuel tax are considered to be effective environmental supervision measures, and the implementation of this policy is bound to have a critical impact on the advance of economic level. However, the implementation effects of these two mechanisms may be different, and they may also have various effects on regional development. Therefore, based on the panel data of China's 29 provinces from 2008 to 2018, we adopt the spatial autocorrelation method to explore the relationship between the economic levels of various areas. Then, establishing the panel spatial econometric model of economic growth and carbon tax, economic growth and fuel tax respectively to compare the implementation effects of the two tax policies. It turns out that there is a positive correlation between the economic growth of 29 provinces in China. And whether choosing to levy carbon tax or fuel tax, they all have their own advantages and disadvantages. Finally, according to the results of empirical analysis results, some relevant policy suggestions are put forward.

Optimal tax selection under monopoly: emission tax vs carbon tax

Both carbon and emission taxes popularly exist all over the world. Therefore, it is important to compare carbon with emission tax. Under monopolization, this article establishes game theory model to compare carbon with emission tax. On one hand, both carbon and emission taxes reduce energy inputs, outputs, profits, and emission. On the other hand, under optimal taxes, two types of taxes affect identically. Under incomplete information carbon taxes seem more efficient than emission taxes. Based on these conclusions, we suggest to launch environmental tax based on emission function. Or the selection of taxes should consider the emission properties in production.

A carbon tax or a subsidy? Policy choice when a green firm competes with a high carbon emitter

Choosing pollution control instrument is an important environmental policy decision. Carbon taxes and subsidies for emissions reductions are two commonly used environmental policies. In practice, the government may be restricted to use only one policy instrument. In this paper, we compare the social welfare effect between policies of a carbon tax and a subsidy. We show that as the marginal environmental damage of the high carbon product increases, the control instrument should change from a subsidy policy to a carbon tax policy. It also turns out that Bertrand competition does not always incur a higher social welfare than Cournot competition when the government intervenes with a pollution control policy.

Mean Field Models to Regulate Carbon Emissions in Electricity Production

The most serious threat to ecosystems is the global climate change fueled by the uncontrolled increase in carbon emissions. In this project, we use mean field control and mean field game models to analyze and inform the decisions of electricity producers on how much renewable sources of production ought to be used in the presence of a carbon tax. The trade-off between higher revenues from production and the negative externality of carbon emissions is quantified for each producer who needs to balance in real time reliance on reliable but polluting (fossil fuel) thermal power stations versus investing in and depending upon clean production from uncertain wind and solar technologies. We compare the impacts of these decisions in two different scenarios: (1) the producers are competitive and hopefully reach a Nash equilibrium; (2) they cooperate and reach a social optimum. In the model, the producers have both time dependent and independent controls. We first propose nonstandard forward-backward stochastic differential equation systems that characterize the Nash equilibrium and the social optimum. Then, we prove that both problems have a unique solution using these equations. We then illustrate with numerical experiments the producers' behavior in each scenario. We further introduce and analyze the impact of a regulator in control of the carbon tax policy, and we study the resulting Stackelberg equilibrium with the field of producers.

Carbon tax and energy innovation at crossroads of carbon neutrality: Designing a sustainable decarbonization policy

Decarbonation has been a primary policy prerogative for Sweden, and carbon tax has been a primary policy instrument in this pursuit, and the revenue generated out of carbon tax has been a driver for energy innovation. However, the benefits of energy innovation have not been experienced across various sectors in Swedish economy, and it might be anticipated that the potential aim of achieving carbon neutrality might not be accomplished to the fullest. Hence, being faced with the need of policy realignment for Sweden, this study has made an attempt to discover the dynamics between carbon tax revenue and energy innovation over a period of 1990-2019, following Quantile-on-Quantile Regression framework. The results obtained from the study show that the impact of carbon tax revenue on energy innovation might turn out to be ineffective beyond a certain threshold limit. A similar pattern has also been observed for the impact of energy innovation on carbon tax revenue. This study gives an indication that there might be a non-linear association between both these model parameters. The study outcomes have paved a way to design a policy framework for helping Swedish economy to attain the objectives of Sustainable Development Goals, while paving the ways to achieve carbon neutrality.

A systems approach to carbon policy for fruit supply chains: Carbon tax, technology innovation, or land sparing?

Reducing carbon emissions of food supply chains has increasingly received attention from businesses and policymakers. In order to propose sound policies aimed at lowering such emissions, policy makers favor tools that are informative in the economic and environmental dimensions simultaneously. In this study we offer a systems-based approach which is intended to do just that by developing a spatially and temporally disaggregated price equilibrium mathematical model for a food production and distribution system and applying it to the U.S. apple supply chain. We considered three emission reduction interventions: a carbon tax, a land-sparing incentive, and new emission-reduction technologies. We find that R&D which leads to storage technologies with lower carbon emission rates has the greatest potential for emission reduction. Carbon taxes also has the potential to reduce emissions, but at the cost of decreasing apple production and increasing consumer price. These results are unexpected and important, particularly since several countries are implementing carbon taxes and/or land sparing/sharing strategies.

Impact of energy structure on carbon emission and economy of China in the scenario of carbon taxation

As the largest CO₂ emitter in the world, China intends to achieve the peak of carbon emissions in around 2030. Unlike many other countries' targets of reducing the amount the carbon emissions, China has engaged in achieving the goal of carbon emission intensity regulation including economic development and carbon emission reduction. In recent years, carbon tax policy has been implemented by about 30 national and sub-national jurisdictions in controlling carbon emissions and has shown promising results. In this context, this research evaluates whether the carbon tax is an effective way for China to accomplish the win-win target of carbon reduction and GDP growth. Specifically, a model is established based on the energy substitution theory and input-output theory to evaluate the effectiveness of carbon tax on the eight economic sectors of China. The carbon emission reduction and economic performance before and after carbon taxation are compared. Moreover, the effects of different carbon tax rates on economic development are analyzed. The results are as follows: (1) The total amount of carbon emission decreases while the carbon tax is levied, and a positive correlation is found between the tax rate and the emission reduction amount. (2) The carbon tax has a significant impact on economic development, and a negative correlation is found between the tax rate and economic development. However, the loss of the economic output caused by the carbon tax gradually reduces over time. (3) Carbon tax policy would be effective for China to accomplish the win-win goal of carbon reduction and GDP growth. Moreover, the carbon tax rate should be set at a low level to achieve the target by the lowest economic cost. On this basis, several policy recommendations are proposed by this research.

CGE modeling with disaggregated pollution treatment sectors for assessing China's environmental tax policies

This research involved constructing a computable general equilibrium (CGE) model for assessing China's latest environmental tax policies. Most environmental CGE models link pollutant emissions to the standard CGE model only by pollution coefficients per unit of sectoral output, and the emission reduction process is not included within production structures. We constructed separate pollution treatment sectors for solid waste management, wastewater management, and waste gas management to describe the pollution treatment processes and identify how policies affect production activities. We compiled the satellite accounts of 18 pollutants from the China Environmentally Extended Input-Output (CEEIO) dataset covering primary gas, water, and solid pollutants and disaggregated the electricity sector into six different production technologies: hydroelectricity, coal power, gas electricity, oil electricity, nuclear power, and renewable energies. We drew two primary conclusions from the simulation results. First, the environmental policies examined could help reduce the emissions of most kinds of pollutants, but also negatively affect GDP. GDP loss by 2030 would be 0.03% in the low environmental tax scenario (LowET), 0.06% in the high environmental tax scenario (HighET), 0.16% in the low environmental tax and low carbon tax scenario (LowETC), and 0.34% in the high environmental tax and high carbon tax scenario (HighETC). SO₂ emissions would decrease by 17.4%, 21.0%, 19.3% and 24.5%, respectively, and CO₂ emissions would reduce by 0.9%, 1.7%, 5.8% and 11.0%. Second, despite the minor changes in the economic impacts, the effectiveness in pollution treatment of environmental tax policies is underestimated if the pollution treatment sectors are disaggregated in the CGE model. Take the SO₂ for an example. The calculated SO₂ reductions will increase from 8.95% to 24.46% after disaggregating the pollution treatment sectors in HighETC scenarios.

Indirect effects of carbon taxes on water conservation: A water footprint analysis for China

Water scarcity is a severe problem for regional environmental protection and socioeconomic development, and water footprints are effective tools for evaluating the magnitude of the water scarcity. However, water is closely intertwined with energy. Carbon taxes are an essential policy tool for managing energy use, and could therefore indirectly change the water footprint. Previous research on water footprints has revealed the historical characteristics of water footprints, but has not predicted how these characteristics would change under a carbon tax. Identifying the indirect impacts of carbon taxes on water footprints could therefore offer important information to support more effective energy and water policies. In the present study, we explored the impacts of carbon taxes on water footprints. We established a computable general equilibrium model to predict the effects of carbon taxes on the socioeconomic system, and adopted an input-output model to account for changes in the water footprint. We then used China as a case study. We found that a carbon tax could reduce the total water footprint, even though the water footprint for primary industries increased. In addition, the tax could decrease the virtual water content, and the reduction of virtual water content is the greatest for the secondary industries.

A Moment of Intersecting Crises: Climate Justice in the Era of Coronavirus

The author explores the nexus of ‘climate chaos’ and how this intersects with and exacerbates the top issues of our time—from immigration to public health to mass incarceration. She challenges us to think about the implications of these intersections for social justice and why policy makers need to stop considering the climate emergency as a siloed issue. Climate policy needs to be framed and rethought in an intersectional manner that centers equity, justice, and the creation of jobs.

Sustainable dynamic lot sizing models for cold products under carbon cap policy

Amid the ever growing interest in operational supply chain models that incorporate environmental aspects as an integral part of the decision making process, this paper addresses the dynamic lot sizing problem of a cold product while accounting for carbon emissions generated during temperature-controlled storage and transportation activities. We present two mixed integer programming models to tackle the two cases where the carbon cap is imposed over the whole planning horizon versus the more stringent version of a cap per period. For the first model, a Lagrangian relaxation approach is proposed which provides a mean for comparing the operational cost and carbon footprint performance of the carbon tax and the carbon cap policies. Subsequently, a Bisection based algorithm is developed to solve the relaxed model and generate the optimal ordering policy. The second model, however, is solved via a dynamic programming based algorithm while respecting two established lower and upper bounds on the periodic carbon cap. The results of the computational experiments for the first model display a stepwise increase (decrease) in the total carbon emissions (operational cost) as the preset cap value is increased. A similar behavior is also observed for the second model with the exception that paradoxical increases in the total emissions are sometimes realized with slightly tighter values of the periodic cap.

SVR-DEA model of carbon tax pricing for China's thermal power industry

To mitigate the adverse effects of global climate change, the carbon tax has been gradually recognized as an important economic means to reduce carbon emissions. This paper therefore aimed to investigate the carbon tax pricing for China's thermal power industry and proposed a provincial increasing block carbon tax (IBCT) policy. By designing a forecast-optimized framework with support vector regression (SVR) and data envelopment analysis (DEA), the pricings of IBCT and flat carbon tax (FCT) were calculated. Meanwhile, the effects of both them on emission reduction were compared. The results showed that: (1) China's overall electricity demand will continue to increase in 2020, with southern and northern provinces showing stronger increases than other provinces. (2) The marginal abatement cost of each region was calculated, thus gaining an optimal three-stage form of IBCT. (3) The comparison indicated that the emission reduction efficiency of the IBCT was 23.1% higher than the FCT under the premise of equal emission reduction. The study suggests that IBCT is a more efficient type of carbon tax policy compared to FCT. Implementing IBCT can be conducive to achieving the dual goals of reducing cost burden and carbon emission in China's thermal power industry.

Employing the CGE model to analyze the impact of carbon tax revenue recycling schemes on employment in coal resource-based areas: Evidence from Shanxi

Whether or not the carbon tax is conducive to alleviating the pressure on employment reduction in coal resource-based areas is a subject worthy of in-depth study. We take the province of Shanxi, a typical coal resource-based area in China, as an example, and use the dynamic computable general equilibrium (CGE) model to simulate the impact of carbon tax on employment under various carbon tax revenue recycling schemes. We disaggregate the employment effect into demand effect, cost effect, factor-shift effect, and investment-pull effect to analyze the transmission path of the influence of carbon tax on employment. The results show that the carbon tax is conducive to alleviating the pressures on employment reduction in coal resource-based areas. Compared with the scenario of no carbon tax revenue recycling, the pressures on employment reduction under the scenario where carbon tax is returned to residents or enterprises in different forms, are allayed. More into detail, carbon tax has the least inhibiting effect on industry employment in case that tax revenue is returned to residents in the form of transfer payment. In addition, there is a prominent difference in the transmission path through which the carbon tax promotes employment, that is, the single effect, or the combination of demand effect, cost effect, factor-shift effect, and investment-pull effect. However, the carbon tax would obstruct employment principally through the demand effect.

The influence of carbon tax on the ecological efficiency of China's energy intensive industries-A inter-fuel and inter-factor substitution perspective

China's energy intensive industries have posed great challenges in achieving carbon emissions reduction goals. We calculate the influence of carbon tax levying on the CO₂ emissions as well as ecological efficiency of China's energy intensive industries utilizing inter-fuel and inter-factor substitution channel. To allow for the slow adjustment process of the enterprises of different fuels and factors inputs, a dynamic model and three-stage estimation procedure are used. Based on the substitution among fuels and factors, the results indicate that carbon tax levying will make the enterprises transform from consuming coal (with a higher carbon efficient) to lower oil/gas and electricity, and from inputting energy to inputting more labor and capital. Therefore, carbon tax is conductive for the CO₂ reduction in China's energy intensive industries. With regard to the two kinds of ecological efficiency, carbon tax plays a negative role in improving them. Thus, carbon tax levy is suggested to reduce the carbon dioxide emissions in China's energy intensive industries. The future assessment tasks should include the ecological efficiency in to make the assessment more reasonable.

Data set and model code on the optimal operating state of a negative emission polygeneration system

This article contains the data set and model code for the negative emission polygeneration system described in Tan et al. (2019). The data was generated utilizing an optimization model implemented in LINGO 18.0 and includes information on the operating state of each process unit in the system. The maximum annual profit of the system was determined at different carbon footprint targets. The data set and model code can be utilized for further analysis on the interdependence between the process units of this polygeneration system, its operational and environmental performance, and the potential impact of integrating new process units into the network.

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.

Assessing Short-Term and Long-Term Economic and Environmental Effects of the COVID-19 Crisis in France

In response to the COVID-19 health crisis, the French government has imposed drastic lockdown measures for a period of 55 days. This paper provides a quantitative assessment of the economic and environmental impacts of these measures in the short and long term. We use a Computable General Equilibrium model designed to assess environmental and energy policies impacts at the macroeconomic and sectoral levels. We find that the lockdown has led to a significant decrease in economic output of 5% of GDP, but a positive environmental impact with a 6.6% reduction in CO₂ emissions in 2020. Both decreases are temporary: economic and environmental indicators return to their baseline trajectory after a few years. CO₂ emissions even end up significantly higher after the COVID-19 crisis when we account for persistently low oil prices. We then investigate whether implementing carbon pricing can still yield positive macroeconomic dividends in the post-COVID recovery. We find that implementing ambitious carbon pricing speeds up economic recovery while significantly reducing CO₂ emissions. By maintaining high fossil fuel prices, carbon taxation reduces the imports of fossil energy and stimulates energy efficiency investments while the full redistribution of tax proceeds does not hamper the recovery.

Tackling the chronic disease burden: are there co-benefits from climate policy measures?

Each year, non-communicable diseases (NCDs) kill 40 million people worldwide and impose an estimated economic burden of $600 billion. Without effective policymaking, NCDs will continue to undermine health and economic systems globally. We propose that climate policy measures-such as carbon pricing-can yield significant health-related co-benefits aside from their intended greenhouse gas emission reduction. We simulate three carbon tax scenarios in the energy and food sector in Belgium and assess the resulting health-related co-benefits. These benefits originate from decreased exposure to two leading NCD risk factors: fine particulate matter and dietary regimes excessive in animal products. The carbon tax could prevent 42,300-78,800 Disability-Adjusted Life Years in Belgium, or save 0.6-1.1% of total health care expenditure and an additional 0.06-0.12% of Belgian GDP. We conclude that these health-related co-benefits should be included in the cost-benefit analysis of carbon pricing.

Competing actors in the climate change arena in Mexico: A network analysis

This paper analyzes the actors in the climate change arena and their influence in directing Mexico toward policies that decrease greenhouse gas emissions, such as the carbon tax and climate change law. The network analysis of the agreement of these laws and public policies in Mexico is a lesson for any country that is in the process of designing and adopting environmental laws. The research is performed using a network analysis that is derived from interviews with various main actors and a discourse analysis of the media. Results show that actors do not coordinate their efforts-they meet frequently but in different inter-ministerial commissions-and do not enforce the same policies. The actors in the industry have formed strong coalitions against the carbon tax and the General Law on Climate Change, whereas international institutions have formed coalitions that support these policies and laws.

Tripartite equilibrium strategy for a carbon tax setting problem in air passenger transport

Carbon emissions in air passenger transport have become increasing serious with the rapidly development of aviation industry. Combined with a tripartite equilibrium strategy, this paper proposes a multi-level multi-objective model for an air passenger transport carbon tax setting problem (CTSP) among an international organization, an airline and passengers with the fuzzy uncertainty. The proposed model is simplified to an equivalent crisp model by a weighted sum procedure and a Karush-Kuhn-Tucker (KKT) transformation method. To solve the equivalent crisp model, a fuzzy logic controlled genetic algorithm with entropy-Bolitzmann selection (FLC-GA with EBS) is designed as an integrated solution method. Then, a numerical example is provided to demonstrate the practicality and efficiency of the optimization method. Results show that the cap tax mechanism is an important part of air passenger trans'port carbon emission mitigation and thus, it should be effectively applied to air passenger transport. These results also indicate that the proposed method can provide efficient ways of mitigating carbon emissions for air passenger transport, and therefore assist decision makers in formulating relevant strategies under multiple scenarios.

CARBON TAX SCENARIOS

The Energy Modeling Forum (EMF) 32 study on carbon tax scenarios analyzed a set of illustrative policies in the United States that place an economy-wide tax on fossil-fuel-related carbon dioxide (CO2) emissions, a carbon tax for short. Eleven modeling teams ran these stylized scenarios, which vary by the initial carbon tax rate, the rate at which the tax escalates over time, and the use of the revenues. Modelers reported their results for the effects of the policies, relative to a reference scenario that does not include a carbon tax, on emissions, economic activity, and outcomes within the U.S. energy system. This paper explains the scenario design, presents an overview of the results, and compares results from the participating models. In particular, we compare various outcomes across the models, such as emissions, revenue, gross domestic product, sectoral impacts, and welfare.

Employing a CGE model in analysing the environmental and economy-wide impacts of CO2 emission abatement policies in Malaysia

The impact of global warming has received much international attention in recent decades. To meet climate-change mitigation targets, environmental policy instruments have been designed to transform the way goods and services are produced as well as alter consumption patterns. The government of Malaysia is strongly committed to reducing CO₂ gas emissions as a proportion of GDP by 40% from 2005 levels by the year 2020. This study evaluates the economy-wide impacts of implementing two different types of CO₂ emission abatement policies in Malaysia using market-based (imposing a carbon tax) and command-and-control mechanism (sectoral emission standards). The policy simulations conducted involve the removal of the subsidy on petroleum products by the government. A carbon emission tax in conjunction with the revenue neutrality assumption is seen to be more effective than a command-and-control policy as it provides a double dividend. This is apparent as changes in consumption patterns lead to welfare enhancements while contributing to reductions in CO₂ emissions. The simulation results show that the production of renewable energies is stepped up when the imposition of carbon tax and removal of the subsidy is augmented by revenue recycling. This study provides an economy-wide assessment that compares two important tools for assisting environment policy makers evaluate carbon emission abatement initiatives in Malaysia.

A warmer policy for a colder climate: Can China both reduce poverty and cap carbon emissions?

Reducing global carbon dioxide (CO2) emissions is often thought to be at odds with economic growth and poverty reduction. Using an integrated assessment modeling approach, we find that China can cap CO2 emissions at 2015 level while sustaining economic growth and reducing the urban-rural income gap by a third by 2030. As a result, the Chinese economy becomes less dependent on exports and investments, as household consumption emerges as a driver behind economic growth, in line with current policy priorities. The resulting accumulated greenhouse gas emissions reduction 2016-2030 is about 60billionton (60Mg) CO2e. A CO2 tax combined with income re-distribution initially leads to a modest warming due to reduction in sulfur dioxide (SO2) emissions. However, the net effect is eventually cooling when the effect of reduced CO2 emissions dominates due to the long-lasting climate response of CO2. The net reduction in global temperature for the remaining part of this century is about 0.03±0.02°C, corresponding in magnitude to the cooling from avoiding one year of global CO2 emissions.