The economic and environmental impact of a carbon tax for Scotland : a computable general equilibrium analysis
Allan, Grant and Lecca, Patrizio and McGregor, Peter and Swales, Kim (2014) The economic and environmental impact of a carbon tax for Scotland : a computable general equilibrium analysis. Ecological Economics, 100. pp. 40-50. ISSN 0921-8009 (https://doi.org/10.1016/j.ecolecon.2014.01.012)
Preview |
PDF.
Filename: Carbon_Tax_Paper_revised_.pdf
Accepted Author Manuscript License: Download (738kB)| Preview |
Abstract
Using a disaggregated energy–economy–environmental model, we investigate the economic and environmental impact of a Scottish specific carbon tax under three alternative assumptions about the use of the revenue raised by the tax: revenues raised are not recycled within Scotland; revenues are used to increase general government expenditure or to reduce Scottish income tax. Wefind that by imposing a tax of £50 per tonne of CO2 the 37% CO2 reduction target is met with a very rapid adjustment in all three cases if the model incorporates forward-looking behaviour. However, the adjustment is much slower if agents are myopic. In addition, the results of the model suggest that a carbon tax might simultaneously stimulate economic activity whilst reducing emissions and thus secure a double dividend, but only for the case in which the revenue is recycled through income tax.
ORCID iDs
Allan, Grant ORCID: https://orcid.org/0000-0002-1404-2768, Lecca, Patrizio, McGregor, Peter ORCID: https://orcid.org/0000-0003-1221-7963 and Swales, Kim;-
-
Item type: Article ID code: 46994 Dates: DateEvent30 April 2014Published18 February 2014Published Online17 January 2014AcceptedSubjects: Social Sciences > Communities. Classes. Races > Regional economics. Space in economics
Geography. Anthropology. Recreation > Environmental SciencesDepartment: Strathclyde Business School > Economics
Strathclyde Business School > Fraser of Allander InstituteDepositing user: Pure Administrator Date deposited: 28 Feb 2014 11:11 Last modified: 05 Nov 2024 01:33 Related URLs: URI: https://strathprints.strath.ac.uk/id/eprint/46994