This paper analyses the combination of taxes and subsidies as an instrument to enable a reduction in CO2 emission. The objective of the study is to compare recycling of a CO2 tax revenue as a subsidy for biomass use as opposed to traditional recycling such as reduced income or corporate taxation. A model of Denmark's energy supply sector is used to analyse the e€ect of a CO2 tax combined with u...

So far we have assumed the existence of a (federal) government capable of imposing a different level of a road tax on each part of the network and returning the revenue either lump-sum or in the form of a labor tax cut. Although the above setting can potentially lead to an (economically) efficient allocation (i.e. when the correct level of a tax is combined with the correct revenue-recycling pr...

Removing fossil fuel subsidies is important for mitigation and making carbon pricing polices effective. We find that removing on fuels may not generate more public resistance (or support) than introducing a tax, by specifying alternatives revenue recycling, the level of acceptability increase.

Existing estimates of optimal climate policy ignore the possibility that carbon tax revenues could be used in a progressive way; model results therefore typically imply near-term action comes at some cost to poor. Using Nested Inequalities Climate Economy (NICE) model, we show an equal per capita refund implies achieving 2 °C target can pay large and immediate dividends for improving well-being...

W e consider a supply chain with a supplier that sells to a retailer under a revenue-sharing arrangement. Demand is uncertain and unobservable to the supplier. We assume that the retailer is rational, that is, the retailer behaves opportunistically and underreports sales revenues to the supplier whenever such underreporting is profitable. Assuming the supplier has the ability to audit the retai...

The development strategy in Korea, which expedited industrialisation and urbanisation, achieved rapid economic development at the cost of the environment. As the economy grew, demands for cleaner environments increased rapidly and the rehabilitation of the environment became one of the most urgent tasks of the government. In dealing with the environmental challenge, the Government of Korea (GoK...

Recent studies find that environmental tax swaps typically exacerbate the costs of the tax system and therefore do not produce a “double dividend”. We extend previous models by incorporating taxfavored consumption goods (e.g. housing, medical care). In this setting, the efficiency gains from recycling environmental tax revenues are larger because pre-existing taxes distort the consumption bundl...

This paper investigates the impacts at the state and regional levels of policies to limit U.S. carbon dioxide (CO2) emissions. It constructs an interregional computable general equilibrium model which divides the U.S. economy into ten industries and 50 states, and simulates the effects of economywide CO2 emission taxes. The results elucidate the sources and consequences of the incidence of abat...