Evaluation of research and development subsidies and fossil energy tax for sustainable development using computable general equilibrium model

Abstract

Policy‐making in improving the quality of the environment and social welfare and increasing the rate of economic growth to achieve sustainable development has been considered by policymakers in recent years. Punitive policies such as taxes on fossil energy consumption and incentive policies such as subsidies for investment in research and development are among the policies used to achieve sustainable development goals. In this study, using a computable general equilibrium model, two scenarios of subsidy to investment in research and development and subsidy with the taxation of fossil fuels, to double the ratio of investment in research and development GDP have been considered. First, the subsidy rate required to invest in research and development to achieve this goal is determined, and then, the economic, welfare, and environmental effects of the policies implemented are examined. This study shows that in the first scenario, the subsidy rate required to invest in research and development to achieve this goal is 10.74% and in the second scenario is 10.21%. Meanwhile, the required tax rate in the second scenario is estimated at 2.5% of fossil energy consumption. The results show that both the fossil energy tax policy and the research and development subsidy policy are able to reduce energy consumption, air pollution, and social welfare. The reduction in welfare in both scenarios is regardless of the social benefits of reducing greenhouse gas emissions.

An overview of renewable energy technologies for the simultaneous production of high-performance power and heat

“…Gas-based Micro-CHP systems have also recently received attention. These systems can be used with gas engines, Stirling engines, and fuel cells but currently can not be widely used on small scales such as residential due to the high cost of fuel cells and low internal efficiency (less than 5%) [39]. In addition, technologies such as gas boilers will be more cost-effective, but if Micro-CHP is reduced by about 50%, CHP technology can be widely used in residential areas instead of gas boilers [28].…”

4E analysis of the horizontal axis wind turbine with LCA consideration for different climate conditions

“…The obtained parameter is the cost of carbon dioxide emissions produced in the system, and it is considered a method for evaluating energy systems from an environmental perspective 45 . To prevent climate change and other phenomena such as global warming, methods and policies are proposed to reduce carbon dioxide emissions as much as possible 46 . With an economical approach, pricing the carbon method seeks to make environmental impacts more tangible for a more accurate analysis of the problem and reduces the environmental impact of energy systems by formulating incentive or punitive (financial penalty) policies.…”

“…45 To prevent climate change and other phenomena such as global warming, methods and policies are proposed to reduce carbon dioxide emissions as much as possible. 46 With an economical approach, pricing the carbon method seeks to make environmental impacts more tangible for a more accurate analysis of the problem and reduces the environmental impact of energy systems by formulating incentive or punitive (financial penalty) policies. A schematic of the interaction of environmental parameters is illustrated in Figure 5.…”

Critical review of multigeneration system powered by geothermal energy resource from the energy, exergy, and economic point of views

“…Nowadays, about 80% of the world's electricity is supplied by fossil fuels-fired power plants. 1,2 Exploiting clean, renewable energies is considered an alternative source to fossil fuel systems and thus grabs more and more attention these days. 3,4 Since billions of years ago, the earth's core has produced and radiated heat.…”