An Assessment of Japanese Carbon Tax Reform Using the E3MG Econometric Model
This paper analyses the potential economic and environmental effects of carbon taxation in Japan using the E3MG model, a global macroeconometric model constructed by the University of Cambridge and Cambridge Econometrics. The paper approaches the issues by considering first the impacts of the carbon...
Saved in:
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Wiley
2012-01-01
|
| Series: | The Scientific World Journal |
| Online Access: | http://dx.doi.org/10.1100/2012/835917 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1850167888483188736 |
|---|---|
| author | Soocheol Lee Hector Pollitt Kazuhiro Ueta |
| author_facet | Soocheol Lee Hector Pollitt Kazuhiro Ueta |
| author_sort | Soocheol Lee |
| collection | DOAJ |
| description | This paper analyses the potential economic and environmental effects of carbon taxation in Japan using the E3MG model, a global macroeconometric model constructed by the University of Cambridge and Cambridge Econometrics. The paper approaches the issues by considering first the impacts of the carbon tax in Japan introduced in 2012 and then the measures necessary to reduce Japan’s emissions in line with its Copenhagen pledge of −25% compared to 1990 levels. The results from the model suggest that FY2012 Tax Reform has only a small impact on emission levels and no significant impact on GDP and employment. The potential costs of reducing emissions to meet the 25% reduction target for 2020 are quite modest, but noticeable. GDP falls by around 1.2% compared to the baseline and employment by 0.4% compared to the baseline. But this could be offset, with some potential economic benefits, if revenues are recycled efficiently. This paper considers two revenue recycling scenarios. The most positive outcome is if revenues are used both to reduce income tax rates and to increase investment in energy efficiency. This paper shows there could be double dividend effects, if Carbon Tax Reform is properly designed. |
| format | Article |
| id | doaj-art-dfb7bd0af1a44c15aa8ab37d1e7ab9ab |
| institution | OA Journals |
| issn | 1537-744X |
| language | English |
| publishDate | 2012-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | The Scientific World Journal |
| spelling | doaj-art-dfb7bd0af1a44c15aa8ab37d1e7ab9ab2025-08-20T02:21:06ZengWileyThe Scientific World Journal1537-744X2012-01-01201210.1100/2012/835917835917An Assessment of Japanese Carbon Tax Reform Using the E3MG Econometric ModelSoocheol Lee0Hector Pollitt1Kazuhiro Ueta2Faculty of Economics, Meijo University, 1-501 Shiogamaguchi Tenpak-ku, Nagoya 468-8502, JapanInternational Modelling, Cambridge Econometrics, Covent Garden, Cambridge CB1 2HT, UKGraduate School of Economics, Kyoto University, Yoshida-Honmachi Sakyo-ku, Kyoto 606-8501, JapanThis paper analyses the potential economic and environmental effects of carbon taxation in Japan using the E3MG model, a global macroeconometric model constructed by the University of Cambridge and Cambridge Econometrics. The paper approaches the issues by considering first the impacts of the carbon tax in Japan introduced in 2012 and then the measures necessary to reduce Japan’s emissions in line with its Copenhagen pledge of −25% compared to 1990 levels. The results from the model suggest that FY2012 Tax Reform has only a small impact on emission levels and no significant impact on GDP and employment. The potential costs of reducing emissions to meet the 25% reduction target for 2020 are quite modest, but noticeable. GDP falls by around 1.2% compared to the baseline and employment by 0.4% compared to the baseline. But this could be offset, with some potential economic benefits, if revenues are recycled efficiently. This paper considers two revenue recycling scenarios. The most positive outcome is if revenues are used both to reduce income tax rates and to increase investment in energy efficiency. This paper shows there could be double dividend effects, if Carbon Tax Reform is properly designed.http://dx.doi.org/10.1100/2012/835917 |
| spellingShingle | Soocheol Lee Hector Pollitt Kazuhiro Ueta An Assessment of Japanese Carbon Tax Reform Using the E3MG Econometric Model The Scientific World Journal |
| title | An Assessment of Japanese Carbon Tax Reform Using the E3MG Econometric Model |
| title_full | An Assessment of Japanese Carbon Tax Reform Using the E3MG Econometric Model |
| title_fullStr | An Assessment of Japanese Carbon Tax Reform Using the E3MG Econometric Model |
| title_full_unstemmed | An Assessment of Japanese Carbon Tax Reform Using the E3MG Econometric Model |
| title_short | An Assessment of Japanese Carbon Tax Reform Using the E3MG Econometric Model |
| title_sort | assessment of japanese carbon tax reform using the e3mg econometric model |
| url | http://dx.doi.org/10.1100/2012/835917 |
| work_keys_str_mv | AT soocheollee anassessmentofjapanesecarbontaxreformusingthee3mgeconometricmodel AT hectorpollitt anassessmentofjapanesecarbontaxreformusingthee3mgeconometricmodel AT kazuhiroueta anassessmentofjapanesecarbontaxreformusingthee3mgeconometricmodel AT soocheollee assessmentofjapanesecarbontaxreformusingthee3mgeconometricmodel AT hectorpollitt assessmentofjapanesecarbontaxreformusingthee3mgeconometricmodel AT kazuhiroueta assessmentofjapanesecarbontaxreformusingthee3mgeconometricmodel |