Carbon tax and energy innovation at crossroads of carbon neutrality: Designing a sustainable decarbonization policy

Cheng, Yang; Sinha, Avik; Ghosh, Vinit; Sengupta, Tuhin; Luo, Huawei

doi:10.1016/j.jenvman.2021.112957

Cited by 115 publications

(46 citation statements)

References 49 publications

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“…When the level of GDP per capita is high (Yu, 2020), environmental taxes may have a positive impact on economic growth (An and Zhai, 2020). Taxes on carbon have been shown to have a negative impact on energy production (Cheng et al, 2021). Reducing pollution through a fee on polluting goods and services (Rathore and Jakhar, 2021), increasing capital (Sabine et al, 2020), and decreasing pollution using a premium or subsidy are all possible outcomes of a pollution tax (Wang et al, 2021).…”

Section: Literature Reviewmentioning

confidence: 99%

Environmental Benefits From Carbon Tax in the Chinese Carbon Market: A Roadmap to Energy Efficiency in the Post-COVID-19 Era

2022

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Because of China’s global responsibilities to address climate change, the country has made a commitment to limiting the growth of future emissions using policy measures, such as funding mitigation research and regulating energy efficiency requirements directly. Extensions of these policies, such as the measures to improve energy efficiency, use of carbon taxes, and changes to the mix of electricity generation in the country, are also of interest to China. This article applied a computable general equilibrium (CGE) model to examine the effects of such energy efficiency and climate change policy options in the post-COVID-19 era in the China economy. The study findings show that even modest measures can have significant effects on emissions with marginal economic impacts, given the current level of development in the China electricity generation and transportation sectors. It is estimated that a 5 RMB per ton carbon tax will reduce emissions by 4.1% and GDP by 0.27%. Emissions drop by 8.2% and GDP drops by 0.54% when energy efficiency increases by 2% across the China economy, respectively. As a final result, a 5% shift away from burning coal would reduce emissions by 9.0%, while GDP would increase by 1.3%. It has been shown that even low carbon taxes can encourage a notable cleaner energy system.

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Section: Literature Reviewmentioning

confidence: 99%

Environmental Benefits From Carbon Tax in the Chinese Carbon Market: A Roadmap to Energy Efficiency in the Post-COVID-19 Era

2022

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“…As an effective environmental regulation, a carbon tax aims to abate the carbon emissions of society by raising the carbon emission costs of enterprises [28]. Carbon taxes were shown to effectively reduce carbon emissions in Norway, Ireland, Denmark, and Switzerland [6][7][8]29]. However, a carbon tax has not been imposed in more countries because of the negative effects on economic growth.…”

Section: Traditional Policy Effect Of Carbon Taxesmentioning

confidence: 99%

“…As a practical application of Pigouvian taxes, carbon taxes have generally been considered by academia and governments as an effective policy instrument for reducing carbon emissions [4,5]. Currently, Ireland, Switzerland, Denmark, Finland, and Norway have imposed carbon taxes at different rates on carbon emissions or consumption, with remarkable results [6][7][8]. Scholars have also discussed the potential policy effects of imposing a carbon tax in China, the United States, and South Africa, which are countries that have not imposed carbon taxes.…”

Section: Introductionmentioning

confidence: 99%

The Green-Innovation-Inducing Effect of a Unit Progressive Carbon Tax

Xiao

Meng

et al. 2021

Sustainability

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The major global economies are facing increasing pressure to reduce their carbon emissions. Introducing environmental policy instruments to stimulate green innovation is key to mitigating global warming. We propose a carbon tax design with a typical green innovation orientation that links carbon taxes with the low-carbon technology (LCT) of enterprises and imposes a progressive tax on heterogeneous enterprises with LCT stock to encourage green innovation. This study used a dynamic evolution game model based on the Stackelberg model of heterogeneous enterprises with LCT stock to analyze the green-innovation-inducing effect of unit progressive carbon taxes. A unit progressive carbon tax could encourage enterprises to participate in green innovation, regardless of their initial green innovation willingness. The progressive tax rate was more effective than a fixed rate for stimulating green innovation by all enterprises. There was a marginal diminishing effect of increases in the tax rate. An increase in the innovation cost coefficient of enterprises reduced the green-innovation-inducing effect of the unit progressive carbon tax. Increasing the tax rate was effective only under normal circumstances. A decline in the carbon reduction in enterprises also reduced the green-innovation-inducing effect of the unit progressive carbon tax. Furthermore, increasing the tax rate when the carbon reduction amount was extremely low caused enterprises to abandon green innovation.

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“…The increasing environmental degradation has received considerable attention from academia and mounting public concerns over environmental issues have led to initiatives to mitigate environmental effects globally (Sinha, et al, 2020;Cheng et al, 2021;Qin et al, 2021). Along with other factors, the association between economic development/growth and deteriorating environmental conditions is studied globally at various levels, with different pollutants (Ahmad et al, 2021;Sun et al, 2021).…”

Section: Introductionmentioning

confidence: 99%

Global perspectives on environmental kuznets curve: A bibliometric review

et al. 2022

Self Cite

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The environmental Kuznets curve (EKC) explains the dynamics associated with income and environmental quality. This study utilizes bibliometric analysis and data visualization techniques and empirically determines the tendencies and patterns in the EKC literature. Furthermore, the study explains intellectual structure, construct development, evolution, collaborations, and research clusters within the EKC research domain during the last two decades, from 2000 to 2020. The study empirically analyzes 2,218 articles and 55,051 references from 328 journals, 4,146 authors, 99 countries, and 50 subject categories. The study used co-citation analysis to examined the noticeable research articles, journals and authors' contribution. Moreover, the co-occurrence analysis examined the prominent countries, institutions and keywords in the concerned literature. Most studies in EKC domain focus on developing regions facing the dual challenge of growth and environmental sustainability. The current initiative categorizes the EKC knowledge domain into major research areas with the help of different clusters namely causality analysis, non-renewable energy, energy consumption, the EKC, and industrial pollution. The study further discusses emerging trends that provide future research fronts and intellectual development within the EKC framework.

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Carbon tax and energy innovation at crossroads of carbon neutrality: Designing a sustainable decarbonization policy

Abstract: 1 Corresponding author objectives of Sustainable Development Goals, while paving the ways to achieve carbon neutrality.

Cited by 115 publications

References 49 publications

Environmental Benefits From Carbon Tax in the Chinese Carbon Market: A Roadmap to Energy Efficiency in the Post-COVID-19 Era

Environmental Benefits From Carbon Tax in the Chinese Carbon Market: A Roadmap to Energy Efficiency in the Post-COVID-19 Era

The Green-Innovation-Inducing Effect of a Unit Progressive Carbon Tax

Global perspectives on environmental kuznets curve: A bibliometric review

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