A computable general equilibrium analysis of environmental tax reform in Japan with a forward-looking dynamic model

Shiro Takeda, Toshi H. Arimura

研究成果: Article査読

2 被引用数 (Scopus)

抄録

The Japanese government plans to reduce greenhouse gas emissions by 80% by 2050. However, it is not yet clear which policy measures the government will adopt to achieve this goal. In this regard, environmental tax reform, which is the combination of carbon regulation and the reduction of existing distortionary taxes, has attracted much attention. This paper examines the effects of an environmental tax reform in Japan. Using a dynamic computable general equilibrium (CGE) model, we analyze the quantitative impacts of an environmental tax reform and clarify which types of environmental tax reform are the most desirable. In the simulation, we introduce a carbon tax and consider the following four scenarios for the use of the carbon tax revenue: (1) a lump-sum rebate to the household, (2) a cut in income taxes, (3) a cut in corporate taxes and (4) a cut in consumption taxes. The first scenario is a pure carbon tax, and the other three scenarios are types of environmental tax reform. Our CGE simulation shows that (1) environmental tax reform tends to generate more desirable impacts than the pure carbon tax and that (2) the strong double dividend is obtained in some cases. In particular, we show that a cut in corporate taxes leads to the most desirable policy in terms of GDP and national income.

本文言語English
ページ(範囲)503-521
ページ数19
ジャーナルSustainability Science
16
2
DOI
出版ステータスPublished - 2021 3

ASJC Scopus subject areas

  • 地球変動および惑星変動
  • 健康(社会科学)
  • 地理、計画および開発
  • 生態学
  • 社会学および政治科学
  • 自然保全および景観保全
  • 管理、モニタリング、政策と法律

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