The economic and environmental impact of a carbon tax for Scotland: : A computable general equilibrium analysis

• Autores: Grant Allan, Patrizio Lecca, Peter McGregor, Kim Swales
• Localización: Ecological Economics, ISSN-e 1873-6106, Nº. 100, 2014, págs. 40-50
• Idioma: inglés
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• Resumen

  • 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. We find 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.