DOCSLIB.ORG

Global Impacts of the Biofuel Mandate Under a Carbon Tax Ujjayant Chakravorty, Marie-Hélène Hubert

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Global Impacts of the Biofuel Mandate Under a Carbon Tax Ujjayant Chakravorty, Marie-Hélène Hubert Global Impacts of the Biofuel Mandate under a Carbon Tax Ujjayant Chakravorty, Marie-Hélène Hubert To cite this version: Ujjayant Chakravorty, Marie-Hélène Hubert. Global Impacts of the Biofuel Mandate under a Carbon Tax. American Journal of Agricultural Economics, Oxford University Press (OUP), 2013, 95 (2), pp.282 - 288. 10.1093/ajae/aas038. halshs-01892186 HAL Id: halshs-01892186 https://halshs.archives-ouvertes.fr/halshs-01892186 Submitted on 10 Oct 2018 HAL is a multi-disciplinary open access L’archive ouverte pluridisciplinaire HAL, est archive for the deposit and dissemination of sci- destinée au dépôt et à la diffusion de documents entific research documents, whether they are pub- scientifiques de niveau recherche, publiés ou non, lished or not. The documents may come from émanant des établissements d’enseignement et de teaching and research institutions in France or recherche français ou étrangers, des laboratoires abroad, or from public or private research centers. publics ou privés. American Journal of Agricultural Economics Advance Access published June 8, 2012 GLOBAL IMPACTS OF THE BIOFUEL MANDATE UNDER A CARBON TAX UJJAYANT CHAKRAVORTY AND MARIE-HÉLÈNE HUBERT Many countries are actively promoting bio- mandates lead to an increase in indirect car- fuel mandates as a means of reducing carbon bon emissions (Searchinger et al. 2008; Chen, emissions and dependence on imported oil. In Huang and Khanna 2012). the United States, the Federal Renewable Fuel None of these papers examine the joint Standard (RFS) calls for the minimum use of 15 effects of the US and EU mandates and a billion gallons per year of corn ethanol by 2015. carbon tax on a global model. We focus on Beyond 2015, the mandate calls for a steady this issue using a partial equilibrium model of increase in the use of second generation biofu- the world food and fuel markets developed by els to a level of 21 billion gallons in 2022. The Chakravorty et al. (2012). This model is unique EU biofuels mandate requires the share of bio- because it traces the effects of biofuel policies fuels to rise from the current share of 4% to by allowing for the endogenous conversion of 10% in 2020. marginal lands to farming in order to produce An important goal of these energy man- food and fuel. It determines where the biofu- dates is to reduce GHG emissions. However, els and food should be produced and on what many studies suggest that biofuel policies do quality of land (low,medium or high). Two bio- not induce significant reductions in emissions. fuel policies are considered. First, we focus on Chen, Huang and Khanna (2012) develop a the US and EU mandates without any carbon model of the US food and fuel sectors and con- tax. In the second scenario, the two mandates clude that the impact of the mandate alone in are accompanied by a carbon tax. In the regu- reducing GHG emissions is small,but increases lated countries, the mandates reduce gasoline when the mandate is accompanied by a sub- consumption and GHG emissions by trigger- sidy for second generation biofuels or a carbon ing a switch towards biofuels. But it differs tax. Other studies find that the biofuel mandate from a carbon price instrument in that it lowers can cause an increase in direct GHG emissions the price of vehicle miles traveled (VMT) and (de Gorter and Just 2009). By lowering the leads to a rise in the consumption of blended price of the blending fuel, the mandate when fuels.When the mandates are imposed together combined with a tax credit results in an increase with a carbon tax, direct emissions are lower in in fuel consumption, which can raise GHG the regulated countries. emissions. Lasco and Khanna (2010) develop Biofuel use in the US does not change sig- a partial equilibrium model of the US fuel sec- nificantly with a carbon tax, when the mandate tor and show that a combined subsidy and tariff is in place. Hence indirect emissions do not increases ethanol demand and domestic pro- change appreciably in other countries that pro- duction in the US. GHG emissions increase duce and export biofuels to the US. Under compared to the no-intervention case. How- both policies, there is a leakage effect on the ever, all studies agree on one point: biofuel rest of the world. However, what changes is gasoline consumption. When the mandate is combined with the tax instrument, gaso- line use is lower in the US, hence leakage is higher in the rest of the world. Direct car- Ujjayant Chakravorty ([email protected]) is Professor of Eco- nomics at Tufts University (and Fellow, TSE and CESifo); bon emissions in the aggregate, go up. Indi- Marie-Hélène Hubert ([email protected]) is rect carbon emissions also increase some when Assistant Professor of Economics,University of Rennes 1 (CREM). the mandate is combined with the tax. Since This article was presented in an invited paper session at the 2012 ASSA annual meeting in Chicago, IL. The articles in these sessions carbon emissions from biofuels are released are not subjected to the journal’s standard refereeing process. during their production, a carbon tax in the Amer. J. Agr. Econ. 1–7; doi: 10.1093/ajae/aas038 © The Author (2012). Published by Oxford University Press on behalf of the Agricultural and Applied Economics Association. All rights reserved. For permissions, please e-mail: [email protected] 2 Amer. J. Agr. Econ. regulated countries improves the competitive- biofuels.1 Land may be expanded by convert- ness of imported biofuels. Acreage brought ing lands not yet cultivated, which may be of into cultivation increases causing a rise in class 1, 2 or 3, one being the highest quality. indirect carbon emissions. The initial stock of available land is given. At We next describe the model used. Impacts of each period, new land may be brought under biofuel policies on food and fuel markets and cultivation. The cost of land is endogenously on GHG emissions are described in section 3. determined by the shadow price of the land Finally, section 4 concludes. constraint in the model. The cost of convert- ing new land is assumed to be increasing and convex with respect to the acreage converted. We adopt the same functional form as in Gouel The model and Hertel (2006). Land is brought into culti- vation when the land rent exceeds the cost of The world economy is composed of five regions, conversion.2 described below. Each region supplies and Total area available is the sum of land cur- consumes two food commodities (cereals; and rently under farming and land under other meat/dairy) and fuel for transportation. Trans- uses, such as pasture and forests. The initial port fuel is domestically produced from a blend global endowment of agricultural land is 1.5 of gasoline and biofuels. Biofuels may be first billion hectares (FAOSTAT).About 1.6 billion or second generation biofuels. Gasoline is pro- hectares of additional land are available for duced from crude oil and its price depends on cropping possibly at a higher cost of produc- the world oil market. Biofuels and food com- tion (FAO 2008). Most fallow land is located modities are traded between regions. In each in South America and Africa. Land under region, available land may be allocated to food the Conservation Reserve Program (CRP) is or energy. assumed to be available for crop production The regions we consider are: High Income in the US. Food production is assumed to Countries (HICs), Medium (MICs) and Low exhibit constant returns to scale for each land Income Countries (LICs), classified by gross class. Hence, regional food supply is just yield national product per capita. The HICs are times the land area. Improvements in agri- then divided into three groups: US, EU and cultural productivity are allowed to vary by other HICs since our study focuses on US region and land category. Crops are trans- and EU mandatory blending policies. Fast- formed into cereals and meat/dairy at cost growing countries like China, India and Brazil (final goods). are included in the MICs whose average We consider a representative biofuel in each gross national product per capita was about region. In the US, 94% of biofuel production US$5,700 in 2007, the benchmark year for the comes from corn ethanol, while 76% of EU model. Finally, the LICs are mainly nations production is biodiesel from rapeseed (EIA from Africa with average gross national prod- 2011). In the MICs, 94% of biofuels are pro- uct per capita of about $1,060 in 2007. duced from sugar cane. In the Other HICs and Demands for the two food products, cere- LICs, biofuel production is marginal. Second als and meat/dairy, and transport fuel, are generation biofuel technologies are assumed modeled using a Cobb-Douglas function. They to be available only in the US and EU. Cellu- are exogenously driven by population and losic ethanol in the US and Biomass-to-Liquid per capita income. We distinguish between diesel (BTL) in the EU have been identified meat/dairy and cereals to account for the as among the most competitive second gen- change in dietary habits. Meat/dairy products eration biofuels. Even if they are less land include all types of meat and dairy such as consuming, their production cost is higher than milk and butter. Cereals include all grains, that of first generation biofuels. Table 1 reports starch crops, sugar, sweeteners and oil crops. energy yields and production costs for first and The demand for fuel is in Vehicles Miles Trav- second generation biofuels. First generation eled (VMT).
Load more

Recommended publications
  • Small-Scale Renewable Energy Technological Solutions in the Arab
    Regional Initiative for Promoting Small-Scale Renewable Energy Applications in Rural Areas of the Arab Region Small-Scale Renewable Energy Technological Solutions in the Arab Region: Operational Toolkit - December 2020 VISION ESCWA, an innovative catalyst for a stable, just and flourishing Arab region MISSION Committed to the 2030 Agenda, ESCWA’s passionate team produces innovative knowledge, fosters regional consensus and delivers transformational policy advice. Together, we work for a sustainable future for all. E/ESCWA/CL1.CCS/2020/TP.8 Economic and Social Commission for Western Asia Regional Initiative for Promoting Small-Scale Renewable Energy Applications in Rural Areas of the Arab Region Small-Scale Renewable Energy Technological Solutions in the Arab Region: Operational Toolkit December 2020 UNITED NATIONS Beirut © 2020 United Nations All rights reserved worldwide Photocopies and reproductions of excerpts are allowed with proper credits. All queries on rights and licenses, including subsidiary rights, should be addressed to the United Nations Economic and Social Commission for Western Asia (ESCWA), e-mail: [email protected]. The findings, interpretations and conclusions expressed in this publication are those of the authors and do not necessarily reflect the views of the United Nations or its officials or Member States. The designations employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of the United Nations concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. Links contained in this publication are provided for the convenience of the reader and are correct at the time of issue.
    [Show full text]
  • Renewable Energy Sources and Their Applications
    RENEWABLE ENERGY SOURCES AND THEIR APPLICATIONS Editors R.K. Behl, R.N. Chhibar, S. Jain, V.P. Bahl, N.El Bassam AGROBIOS (INTERNATIONAL) Published by: AGROBIOS (INTERNATIONAL) Agro House, Behind Nasrani Cinema Chopasani Road, Jodhpur 342 002 Phone: 91-0291-2642319, Fax: 2643993 E. mail: [email protected] All Rights Reserved, 2013 ISBN No.: 978-93-81191-01-9 No part of this book may be reproduced by any means or transmitted or translated into a machine language without the written permission of the copy right holder. Proceedings of the “ International Conference on Renewable Energy for Institutes and Communities in Urban and Rural Settings, April 27-29, 2012” Organized by: Manav Institute of Technology and Management, Jevra, Disst.Hisar( Haryana) , India All India Council for Technical Education, New Delhi-110 001 Published by: Mrs. Sarswati Purohit for Agrobios (International), Jodhpur Laser typeset at: Yashee computers, Jodhpur Cover Design by: Shyam Printed in India by: Babloo Offset, Jodhpur ABOUT THE EDITORS Prof. Rishi Kumar Behl formerly served as Professor of Plant Breeding and Associate Dean, College of Agriculture, CCS Haryana Agricultural University, Hisar, and is now working as Director, New Initiatives at Manav Institute, Jevra.Disst.Hisar (Haryana). He obtained his B.Sc (Agri) from Rajasthan University, Jaipur, M.Sc (Agri,) and Ph.D from Haryana Agriculture, University, Hisar, India, with distinguished academic carrier. He has been editor in chief of Annals of Biology for about three decades Prof. Dr. Rishi , Associate Editor of Annals of Agri Bio Research, Editorial Board Kumar Behl Member of Archives of Agronomy and Soil Science(Germany), International Advisory Board Member of Tropics( Japan), Associate Editor, Cereal Research Communication (Hungary), Associate Editor, South Pacific Journal of Natural Science (Fiji), Sr.
    [Show full text]
  • Assessing the Costs and Benefits of the Green New Deal's Energy Policies
    BACKGROUNDER No. 3427 | JULY 24, 2019 CENTER FOR DATA ANALYSIS Assessing the Costs and Benefits of the Green New Deal’s Energy Policies Kevin D. Dayaratna, PhD, and Nicolas D. Loris n February 7, 2019, Representative Alexan- KEY TAKEAWAYS dria Ocasio-Cortez (D–NY) and Senator Ed The Green New Deal’s govern- OMarkey (D–MA) released their plan for a ment-managed energy plan poses the Green New Deal in a non-binding resolution. Two of risk of expansive, disastrous damage the main goals of the Green New Deal are to achieve to the economy—hitting working global reductions in greenhouse-gas emissions of 40 Americans the hardest. percent to 60 percent (from 2010 levels) by 2030, and net-zero emissions worldwide by 2050. The Green Under the most modest estimates, just New Deal’s emission-reduction targets are meant to one part of this new deal costs an average keep global temperatures 1.5 degrees Celsius above family $165,000 and wipes out 5.2 million pre-industrial levels.1 jobs with negligible climate benefit. In what the resolution calls a “10-year national mobilization,” the policy proposes monumental Removing government-imposed bar- changes to America’s electricity, transportation, riers to energy innovation would foster manufacturing, and agricultural sectors. The resolu- a stronger economy and, in turn, a tion calls for sweeping changes to America’s economy cleaner environment. to reduce emissions, but is devoid of specific details as to how to do so. Although the Green New Deal This paper, in its entirety, can be found at http://report.heritage.org/bg3427 The Heritage Foundation | 214 Massachusetts Avenue, NE | Washington, DC 20002 | (202) 546-4400 | heritage.org Nothing written here is to be construed as necessarily reflecting the views of The Heritage Foundation or as an attempt to aid or hinder the passage of any bill before Congress.
    [Show full text]
  • WHEREAS, a National Carbon Tax Will Benefit the Economy, Human Health
    RESOLUTTON NO. 102-2018 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME URGING THE UNITED STATES CONGRESS TO ENACT A REVENUE-NEUTRAL TAX ON CARBON. BASED FOSSIL FUELS WHEREAS, greenhouse gas (GHG) emissions from human activities, including the burning of fossil fuels, are causing rising global temperatures; and WHEREAS, the average surface temperature on Earth has been increasing steadily, and cunent estimates are that the average global temperature by the year 21OO will be 2 degrees Fahrenheit to '11.5 degrees Fahrenheit higher than the cunent average global temperature, depending on the level of GHG emissions trapped in the atmosphere; and WHEREAS, the global atmospheric concentration of carlcon dioxide (CO2) exceeded 410 parts per million (ppm) in June 2018, the highest level in three million years and clearly out of synch with long term geological pattems; and WHEREAS, scientific evidence indicates that it is necessary to reduce the global atmospheric concentration of CO2 from the current concentration of more than 400 ppm to 350 ppm or less in order to slow or stop the rise in global temperature; and WHEREAS, global warming is already leading to large-scale problems including ocean acidification and rising sea levels; more frequent, extreme, and damaging weather events such as heat waves, storms, heavy rainfall and flooding, and droughts; more frequent and intense wildfires; disrupted ecosystems affecting biodiversity and food production; and an increase in heat-related deaths; and WHEREAS, further global warming poses an
    [Show full text]
  • Carbon Emission Reduction—Carbon Tax, Carbon Trading, and Carbon Offset
    energies Editorial Carbon Emission Reduction—Carbon Tax, Carbon Trading, and Carbon Offset Wen-Hsien Tsai Department of Business Administration, National Central University, Jhongli, Taoyuan 32001, Taiwan; [email protected]; Tel.: +886-3-426-7247 Received: 29 October 2020; Accepted: 19 November 2020; Published: 23 November 2020 1. Introduction The Paris Agreement was signed by 195 nations in December 2015 to strengthen the global response to the threat of climate change following the 1992 United Nations Framework Convention on Climate Change (UNFCC) and the 1997 Kyoto Protocol. In Article 2 of the Paris Agreement, the increase in the global average temperature is anticipated to be held to well below 2 ◦C above pre-industrial levels, and efforts are being employed to limit the temperature increase to 1.5 ◦C. The United States Environmental Protection Agency (EPA) provides information on emissions of the main greenhouse gases. It shows that about 81% of the totally emitted greenhouse gases were carbon dioxide (CO2), 10% methane, and 7% nitrous oxide in 2018. Therefore, carbon dioxide (CO2) emissions (or carbon emissions) are the most important cause of global warming. The United Nations has made efforts to reduce greenhouse gas emissions or mitigate their effect. In Article 6 of the Paris Agreement, three cooperative approaches that countries can take in attaining the goal of their carbon emission reduction are described, including direct bilateral cooperation, new sustainable development mechanisms, and non-market-based approaches. The World Bank stated that there are some incentives that have been created to encourage carbon emission reduction, such as the removal of fossil fuels subsidies, the introduction of carbon pricing, the increase of energy efficiency standards, and the implementation of auctions for the lowest-cost renewable energy.
    [Show full text]
  • 2008 Renewable Energy Data Book, July 2009
    Energy Efficiency & Renewable Energy JULY 2009 2008 Renewable Energy Data Book Acknowledgments This report was produced by Rachel Gelman and Steve Hockett, edited by Michelle Kubik, and designed by Stacy Buchanan of the National Renewable Energy Laboratory (NREL). We greatly appreciate the input and reviews received from Jacques Beaudry-Losique, Sunita Satyapal, and Jesse Johnson of the U.S. Department of Energy; and Robert Remick, Fort Felker, Doug Arent, Nate Blair, and Selya Price of NREL. Photo on front page courtesy of NASA © 2009 U.S. Department of Energy Key Findings • Although renewable energy (excluding hydropower) is a relatively small portion of total energy supply both globally and in the United States, renewable energy installations in both the world and in the United States have nearly tripled between 2000 and 2008. • Including hydropower, renewable energy represents nearly 11% of total installed capacity and more than 9% of total generation in the United States in 2008. Installed renewable energy capacity (including hydropower) is 119 gigawatts (GW). Not including hydropower, 2008 renewable electricity installed capacity has reached about 42 GW in the United States. • In the United States, growth in sectors such as wind and solar photovoltaics (PV) signify an ongoing shift in the composition of our electricity supply. In 2008, cumulative wind capacity increased by 51% and cumulative solar PV capacity grew 44% from the previous year. Key Findings, continued • Worldwide, wind energy is the fastest growing renewable energy technology—between 2000 and 2008, wind energy generation worldwide increased by a factor of almost 7. The United States experienced even more dramatic growth, as installed wind energy capacity increased almost 10 times between 2000 and 2008.
    [Show full text]
  • Developing the Marine Energy Sector in Scotland: a View from the Islands Thomas Neal Mcmillin University of Mississippi
    University of Mississippi eGrove Honors College (Sally McDonnell Barksdale Honors Theses Honors College) 2014 Developing the Marine Energy Sector in Scotland: A View from the Islands Thomas Neal McMillin University of Mississippi. Sally McDonnell Barksdale Honors College Follow this and additional works at: https://egrove.olemiss.edu/hon_thesis Part of the American Studies Commons Recommended Citation McMillin, Thomas Neal, "Developing the Marine Energy Sector in Scotland: A View from the Islands" (2014). Honors Theses. 912. https://egrove.olemiss.edu/hon_thesis/912 This Undergraduate Thesis is brought to you for free and open access by the Honors College (Sally McDonnell Barksdale Honors College) at eGrove. It has been accepted for inclusion in Honors Theses by an authorized administrator of eGrove. For more information, please contact [email protected]. DEVELOPING THE MARINE ENERGY SECTOR IN SCOTLAND: A VIEW FROM THE ISLANDS _____________________ NEAL MCMILLIN DEVELOPING THE MARINE ENERGY SECTOR IN SCOTLAND: A VIEW FROM THE ISLANDS by Thomas Neal McMillin, Jr. A thesis submitted to the faculty of the University of Mississippi in partial fulfillment of the requirements of the Sally McDonnell Barksdale Honors College. Oxford 2014 Approved by _________________________________ Advisor: Dr. Andy Harper _________________________________ Reader: Dr. Jay Watson _________________________________ Reader: Dr. John Winkle 2 ACKNOWLEDGEMENTS If you need an idea, you may be wise to take a hot shower. I conceived the genesis of this project during one of these. I realized that to apply for the Barksdale Award, I needed to focus on something which I had both experienced and cared about. From that thought, I realized that Scotland and water were my two topics to research.
    [Show full text]
  • Carbon Tax – Key Instrument for Energy Transition!
    Carbon tax – key instrument for energy transition! Global warming is the most challenging problem facing humanity today due to the excessive use of fossil fuels. Carbon tax (carbon dioxide tax) is a simple and efficient way to reduce the use of fossil fuels, improve energy ef- ficiency, and make renewables more competitive. It can be tax neutral, as reducing other taxes will complement carbon tax implementation. It is a smart move to a more sustainable lifestyle and investment for the future. There- fore, the carbon taxes are an indispensable tool for rapid transition to a climate compatible energy system using less fossil fuel and more renewables. • Easy to apply All countries already have some kind of energy taxation and 210 it is administratively easy to introduce the carbon tax in all BIOENERGY 190 countries at a low level. 170 • Easy to calculate GDP GROWTH The tax is easy to calculate based on the carbon content of 150 the fuel and the importers or big energy producers can easily estimate and pay the tax. 130 • Tax neutral 110 Carbon tax must not lead to higher taxation in general. The Carbon tax can be raised at the same time as other tax is 90 CLIMATE GAS reduced. EMISSIONS • Economic 70 2011 2011 The Carbon tax will make it more profitable to use fossil fuels 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2012 2013 2014 efficiently, switch to renewable energy sources or to abstain The Swedish example: Sweden introduced carbon tax in 1990.
    [Show full text]
  • Liquid Fuel Resources and Prospects for Ligno-Cellulosic Ethanol: an Egyptian Case Study
    Egyptian Journal of Petroleum (2013) xxx, xxx–xxx Egyptian Petroleum Research Institute Egyptian Journal of Petroleum www.elsevier.com/locate/egyjp www.sciencedirect.com FULL LENGTH ARTICLE Liquid fuel resources and prospects for ligno-cellulosic ethanol: An Egyptian case study Shadia R. Tewfik *, Nihal M. El Defrawy, Mohamed H. Sorour Chemical Engineering and Pilot Plant Department, National Research Center, Dokki, Giza, Egypt Received 12 June 2012; accepted 8 October 2012 KEYWORDS Abstract Fossil fuels (oil, natural gas and coal) presently represent about 90% of the world’s total Transport fuels; commercial primary energy demand. Yet, they are depletable sources of energy. Growth in the pro- Biomass; duction of easily accessible oil, the main source of high energy liquid transportation fuels, will not Renewables; match the projected rate of demand growth, especially in developing countries. In the transport sec- Bioethanol; tor, today, the only alternative to non-sustainable fossil fuels is biofuels that are produced from bio- Egypt; mass, a stored environmentally neutral solar energy. These fuels are compatible with current Economic indicators vehicles and blendable with conventional fuels. Moreover, they share the long-established distribu- tion infrastructure with little, if any, modification of equipment. The main biofuels presently in commercial production are bioethanol and biodiesel. Industrial countries started production of the 1st generation bioethanol and biodiesel from food products (grains and edible oil) since a few decades and these fuels are currently available at petrol stations. Second generation bioethanol from ligno-cellulosic materials is on the research, pilot and/or demonstration stage. This paper dis- cusses the current situation regarding liquid fuels in Egypt which are experiencing imbalance between total production and demand for gasoline and diesel fuels.
    [Show full text]
  • Quality and Greenhouse Gas Intensities of Transport Fuels in the EU in 2017 Monitoring Under the Fuel Quality Directive in 2017 (2018 Reporting)
    EEA Report No 05/2019 Quality and greenhouse gas intensities of transport fuels in the EU in 2017 Monitoring under the Fuel Quality Directive in 2017 (2018 reporting) ISSN 1977-8449 1994-2019 EEA Report No 05/2019 Quality and greenhouse gas intensities of transport fuels in the EU in 2017 Monitoring under the Fuel Quality Directive in 2017 (2018 reporting) 1994-2019 Cover photo: © Stephanie Schilling Legal notice The contents of this publication do not necessarily reflect the official opinions of the European Commission or other institutions of the European Union. Neither the European Environment Agency nor any person or company acting on behalf of the Agency is responsible for the use that may be made of the information contained in this report. Copyright notice © European Environment Agency, 2019 Reproduction is authorised provided the source is acknowledged. More information on the European Union is available on the Internet (http://europa.eu). Luxembourg: Publications Office of the European Union, 2019 ISBN 978-92-9480-075-6 ISSN 1977-8449 doi:10.2800/773807 European Environment Agency Kongens Nytorv 6 1050 Copenhagen K Denmark Tel.: +45 33 36 71 00 Web: eea.europa.eu Enquiries: eea.europa.eu/enquiries Contents Acknowledgements .................................................................................................................... 5 Executive summary .................................................................................................................... 6 1 Introduction ..........................................................................................................................
    [Show full text]
  • Exploring the Role of Carbon Taxation Policies on CO2 Emissions: Contextual Evidence from Tax Implementation and Non-Implementation European Countries
    sustainability Article Exploring the Role of Carbon Taxation Policies on CO2 Emissions: Contextual Evidence from Tax Implementation and Non-Implementation European Countries Assaad Ghazouani 1, Wanjun Xia 2, Mehdi Ben Jebli 1,3 and Umer Shahzad 2,* 1 Faculty of Legal, Economic and Management Sciences, University of Jendouba, Jendouba 8189, Tunisia; [email protected] (A.G.); [email protected] (M.B.J.) 2 School of Statistics and Applied Mathematics, Anhui University of Finance and Economics, Bengbu 233030, China; [email protected] 3 Faculty of Legal, Economic and Social Sciences, University of Manouba, Manouba 2010, Tunisia * Correspondence: [email protected] or [email protected]; Tel.: +86-15650576260 Received: 30 August 2020; Accepted: 9 October 2020; Published: 20 October 2020 Abstract: During the past decades, environmental related taxes, energy, and carbon taxes has been recommended by environmental scientists as a policy tool to mitigate pollutant emissions in developed and developing economies. Among developed nations, Denmark, Finland, Sweden, the Netherlands, and Norway were the first regions to adopt a tax on carbon dioxide (CO2) emissions and research into the impacts of carbon tax on carbon emissions bring significant implications. The prime objective and goal of this work is to explore the role of carbon tax reforms for environmental quality in European economies. This is probably the first study to conduct a comparative study in European context for carbon-tax implementation and non-implementation policies. To this end, the present study reports new conclusions and implications regarding the effectiveness of environmental regulations and policies for climate change and sustainability.
    [Show full text]
  • Effective Carbon Rates
    Effective Carbon Rates PRICING CO2 THroUGH TAXES AND EMISSIONS TrADING SYSTEMS To tackle climate change, CO2 emissions need to be cut. Pricing carbon is one of the most effective and lowest-cost ways of inducing such cuts. This report presents the first full analysis of the use of carbon pricing on energy in 41 OECD and G20 economies, covering 80% of global energy use and of CO2 emissions. Effective Carbon Rates The analysis takes a comprehensive view of carbon prices, including specific taxes on energy use, carbon taxes and tradable emission permit prices. It shows the entire distribution of effective carbon rates PRICING CO THroUGH TAXES AND EMISSIONS by country and the composition of effective carbon rates by six economic sectors within each country. 2 Carbon prices are seen to be often very low, but some countries price significant shares of their carbon TRADING SYSTEMS emissions. The “carbon pricing gap”, a synthetic indicator showing the extent to which effective carbon rates fall short of pricing emissions at EUR 30 per tonne, the low-end estimate of the cost of carbon used in this study, sheds light on potential ways of strengthening carbon pricing. Effective Carbon Rates EXECUTIVE SUMMARY P R I C ING C ING O 2 TH ro UGH UGH T AX E S AND S EMISSI O NS NS Tr ADING ADING S YST Consult this publication on line: http://dx.doi.org/10.1787/9789264260115-en. E MS Visit our website: www.oecd.org/tax/tax-and-environment.htm Follow us on Twitter: @OECDtax EXECUTIVE SUMMARY Tackling climate change requires deep cuts in greenhouse gas emissions, including CO2 emissions.
    [Show full text]