Studying distribution effect of co2 taxation on Iranian household expenditure- input- output approach

Document Type : Research Paper

Authors

alzahra university

Abstract

The environmental crises, caused by the increased energy consumption and the increasing trend of pollutants emissions resulted from energy carrier’s combustion in the world, is recognized as one of the most important challenges faced by governments in the 21st century. The CO2 taxation is considered as one of the CO2 emission reduction policies in one hand and increases government income on the other hand. Implementation of this policy has distributive effects that can help policymakers measure it. The present study aimed to investigate the distributive effects of CO2 taxation on urban and rural households’ incomes, using the environmental input-output approach. Main data bases in this study are: 2011 input-output table of Static Centre of Iran that is aggregated to 12 sectors due to statistical constraints on sectoral energy consumption. The second data base is consumption of petroleum products of economic was obtained from energy balanced sheet 2011. Rural and urban expenditure and incomes’ households are collected from 2011 Static Centre of Iran, This results show that the distributional effect of the carbon tax on rural household is progressive but for urban households not.

Keywords

Main Subjects

References

  1. Anderson, J. E., Roy, A. G., & Shoemaker, P. A. (2003). Confidence intervals for the Suits Index. National Tax Journal, LVI(1), 81-90.
  2. Arshadi, A, Najafizadeh S A, & Mahdavi M. (2011). Effect of value added tax on the price effects in Iran.  Journal of Economic Research And Policies, 19(58), 127-158 (In Persian.(
  3. Banouei, A., & Kamal, E. (2014). Measurement of direct and indirect Co2 contents of exports and imports of Iran: using input-output approach. Economic Development Policy, 2(3), 1-20 (In Persian).
  4. Bazzazan, F ., & Khosravani, N. (2016). Measuring the amount of carbon dioxide emissions by different parts of production and households due to energy consumption in Iran. Journal of Environmental and Natural Resource Economics, 1(1), 1-25 (In Persian).
  5. Brännlund, R. , & Nordström, J. (2004). Carbon tax simulations using a household demand model. European Economic Review, 48(1), 211-233.
  6. Callan, T., Lyons, S., Scott, S., S. J. Tol, & Verde, S. (2009).The distributional implications of a carbon tax in Ireland. Energy Policy, 37(2), 407-412.
  7. Faridzad, A., Parvin, S., & Banouei, A. (2011). Effects of value added tax pricing using the input-output approach (case of Iran). Iranian journal Economic Research, 16(47), 105-127(In Persian).
  8. Fotros, M. H., Abolfazl, N., & Pirooz Mohammadi, F.(2013). A study of the relationship between air pollution, energy intensity and economic openness in Iran. Economic Journal, 12(11/12), 5-22 (In Persian).
  9. Gerami, M., & Karami, M. (2011). Green Taxation in the Developed Countries. Economic Journal, 11(3/4), 125-134  (In Persian).
  10. http://www.worldbank.org/en/programs/pricing-carbon
  11. IEA (2013), International Energy Agency.
  12. IPCC (2013), Intergovernmental Panel On Climate Change.
  13. Jafari Samimi, A., & Ali Zadeh Malfa, E. (2016). The impact of green taxation on economic growth in Iran by using the general equilibrium method. Quarterly Journal of Economic Growth and Development Research, 6(22), 57-70 (In Persian).
  14. Jiang, Z. , & Shao, S. (2014). Distributional effects of a carbon tax on Chinese households: a case of Shanghai. Energy Policy, (73)C, 269-277.
  15. Khoshakhlagh, R., Vaez Barzani, M., & Sadeghi, B.  (2014). Green taxes and environmental standards of import, appropriate tools of sustainable development in Iran transition economy. Agricultural Economics, 8(2), 175-195(In Persian).
  16. Liang, Q. M., Wang, Q., & Wei, Y. (2013). Assessing the distributional impacts of carbon tax among households across different income groups: the case of China. Energy and Environment Policy in China, 24(7/8), 1323-1346.
  17. Lin, B., & Li, X. (2011). The effect of carbon tax on per capita CO2 emissions. Energy Policy, 39(9),  5137-5146.
  18. Nasrallahi, Z., Ahmadi, Z., & Eshrati, S. (2012). Environmental impact assessment of economic activity in Iran: an input-output approach. Economic Modeling. 6(1), 45-64. (In Persian).
  19. Paytakhti oskoii, A., & Nahidi, M. (2007). Green Taxes Theoretical Foundations, Experiences. 6th Iranian Agricultural Economics Conference, Mashhad, Iran Agricultural Economics Association, Ferdowsi University of Mashhad (In Persian).
  20. Pazhoyan, J., & Rashti Narsis, A. (2007). Green tax with emphasis on petrol consumption. Economic Research 7(1), 15-44 (In Persian).
  21. Poterba, J. M. (1991). Is the gasoline tax regressive? Tax Policy Economics. National Bureau of Economic Research, 5, 145–164.
  22. Pour Ghaffar Dastjerdi, J. (2014). Green Taxation of environmental tax, Economic Journal, 14(1/2), 135-148 (In Persian).
  23. Sadeghi, N., Zabihi, Z., & Mustaali Parsa, M. (2016). Measurement of energy consumption, and CO2 emissions in the economic sectors. Islamic Consultative Assembly, No 15244 (In Persian).
  24. Samavaty, Aida. (2018). Distribution effect of carbon tax on Iranian household with input output approach. Master Dessertation, Alzahra university. (In Persian)
  25. Schillo, B., Ginneralli, L., Kelly, D., Swanson, S., & Wilcoxen, P. (1993). The Distributional Impacts of a Carbon Tax. Energy Modeling Forum, Terms Engineering Center, Stanford University, WP12. 9.
  26. Shah, A. , & Larsen, B. (1992). Carbon Taxes, the Greenhouse Effect, and Developing Countries, The World Bank August 1992, WPS 957.
  27. Siriwardana, M., Meng, S., & Mcneill, J. (2011). The impact of a carbon tax on the Australian economy: results from a CGE model. Internet address: http://www,une.edu.au/business-school/working-papers/economics/econwp11-2.pdf.
  28. Statictical Center of Iran, (2011). Strategic Deputy of Observe, and control Results of Mines in operation in 2011 Survey. (In Persian).
  29. Statictical Centerof Iran, (2011). Survey results of urban, and rural households' expenditure and income, 2011. (In Persian).
  30. Suits, D. B. (1977). Measurement of tax progressivity. American Economic Review, 67(4), 747–752.
  31. Torabi, T., & Varesi, M. (2009). Investigating the environmental pollution of the Iranian industries using the input-output approach (considering only CO2 emission). Journal of Environmental Science and Technology, 3(11), 77-92 (In Persian).
  32. Wiera, M. , Pedersenb, K. B. , & Jacobsence, H. K. (2005). Are CO2 taxes regressive? Evidence from the Danish experience. Ecological Economics, 52(2), 239-251.
  33. Yusuf, A. A., & Resosudarmo, B. (2007). On the distributional effect of carbon tax in developing countries: The case of Indonesia. Economics and Development Studies Working Paper, No. 200705, Department of Economics, Padjadjaran University.

Files

Share

How to cite

Statistics