The impact of a carbon tax implementation on non-CO₂ gas emissions: the case of Japan

Fiscal Policy Instruments and Green Recovery in the Post-Covid-19 era

“…Levying green-adjusted taxes on polluting enterprises can generate revenue for environmental initiatives while channeling investments away from environmentally harmful sectors and toward greener alternatives. Several studies found that carbon pricing effectively reduces CO 2 and non-CO 2 gas emissions (Nong et al 2021;Mortha et al 2021;Chen et al 2022). Introducing green floating rate bonds further advances this agenda (Chang et al 2022).…”