The Impact of Carbon Tax Application on the Economy and Environment of Indonesia

Ayu, Putri

doi:10.26417/ejes.v10i1.p116-126

Cited by 7 publications

(4 citation statements)

References 9 publications

(20 reference statements)

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“…Moreover, while the existing literature has primarily focused on the macro-level impacts of environmental regulations on firms' emission costs (Zhang et al, 2016), it is important to also consider the micro-level impacts of regulations on individual firms. Studies such as those by Pereira et al (2016), Annicchiarico et al (2017), and Ayu (2018) have used total carbon emissions to investigate carbon tax policy and economic policy. While macrolevel data provides valuable insights into the relationship between environmental regulations and firms' emissions costs, micro-level analysis can offer a more detailed understanding of how firms respond to regulations, how their costs change, and the factors that influence their decisions.…”

Section: Of Firmsmentioning

confidence: 99%

Heterogeneity of environmental protection law’s impact on firms’ pollutant discharge

Shan

Gao

2023

Front. Environ. Sci.

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In 2015, China revised its Environmental Protection Law to strengthen regulations on firms’ pollution discharge. However, the efficacy of this law in protecting the environment remains unclear. Using panel data from China’s listed firms spanning from 2010 to 2020, this paper applies the continuous difference model to analyze the impact of the Environmental Protection Law on firms’ pollutant emissions. The results demonstrate a significant and consistent reduction in both total pollutant emissions and pollutant emissions per outcome for firms due to the implementation of the Environmental Protection Law. Additionally, the study indicates a significant reduction in pollutant emissions among firms that did not receive environmental protection subsidies, state-owned enterprises, and firms without prior environmental pollution behaviors. The findings also suggest a two-year lag for the Environmental Protection Law to impact firms’ pollution emissions per outcome. These results carry important practical implications for the government’s efforts to transform environmental protection policies and for firms seeking to enhance their environmental performance.

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Section: Of Firmsmentioning

confidence: 99%

Heterogeneity of environmental protection law’s impact on firms’ pollutant discharge

Shan

Gao

2023

Front. Environ. Sci.

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“…An example is Indonesia that would yield +0.25% real GDP in the same study. Ayu (2018) argued that a carbon tax in Indonesia would reduce GDP not only of the country itself but also that of other countries in the region. Besides the pilot ETS scheduled to be launched by end 2020, Indonesia is also active in RBCF, with the first REDD+ payment received in 2020 (Lubis, 2020).…”

Section: Impact On Macroeconomicsmentioning

confidence: 99%

Impacts of Carbon Pricing on Developing Economies

Koh

Johari²,

Shuib³

et al. 2021

IJEEP

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Carbon pricing is widely recognized as an effective policy instrument for climate change mitigation. Carbon pricing have been imposed in 39 developed countries and eight middle-income countries. Eight more middle-income countries are considering its implementation. As experiences from industrialized countries may not be relevant to developing countries, this literature review fills a knowledge gap by collating the impacts of carbon pricing in developing economies to facilitate cross-learning. Some developing countries still have distortionary subsidies in place, while others are going through environmental fiscal reforms to nudge their societies and economies towards greenhouse gases emission reduction. Various studies demonstrated that safeguards introduced with carbon pricing could help firms to transition while maintaining the motivation to innovate to stay competitive. At the household level, given different energy consumption patterns, carbon pricing in developing economies is not necessarily regressive, especially for rural population. Aggregate impacts to employment rate and gross domestic product change over time as the economy restructures towards decarbonization. A well-designed carbon pricing policy package with revenue recycling mechanisms tailored to the socioeconomic circumstances of the country could achieve multiple dividends of economic growth, increased employment, improved equality, national debt reduction or accomplishment of other sustainable development goals.

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“…As a result, IBM not only has extended producer responsibility for all remanufactured equipment but also obtains a substantial relicensing fee for remanufacturing outsourcing. Therefore, although OEMs have outsourced their remanufacturing, acting as common brand owners, OEMs are still the ideal target for carbon emission policies [6,17,18]. In addition, along with outsourcing remanufacturing operations, OEMs, e.g., IBM, allow IRs to make their remanufactured products and leave an additional marginal profit for them.…”

Section: Introductionmentioning

confidence: 99%

Implications of a Carbon Tax Mechanism in Remanufacturing Outsourcing on Carbon Neutrality

Luo

2022

IJERPH

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Many governments have imposed methods such as a carbon tax that aim to even out the negative effects of carbon emissions. The taxes levied on different agents lead to different make–buy decisions for production structures and different environmental outcomes. Some original equipment manufacturers (OEMs) outsource remanufacturing to independent remanufacturers (IRs). Thus, a question arises: What are the implications of carbon taxes levied on different agents on remanufacturing outsourcing decisions? To answer this question, we developed two models: (1) acting as common brand owners, OEMs can be taxed for both new and remanufactured products, or (2) acting as different emitters for production and remanufacturing, OEMs are taxed for new products; however, all carbon taxes related to remanufacturing are levied on IRs. Our analysis reveals that, regarding economic performance, firms should undertake a carbon emission tax on their own initiative because this allows the taxpayer to choose more units for its preferred products and leaves its rivals at a huge disadvantage. Moreover, regarding environmental sustainability, carbon emission taxes indeed lead to mitigating the effects of carbon emissions per unit; however, environmental agencies should also pay attention to reducing the total carbon emissions by limiting the volume effects.

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The Impact of Carbon Tax Application on the Economy and Environment of Indonesia

Cited by 7 publications

References 9 publications

Heterogeneity of environmental protection law’s impact on firms’ pollutant discharge

Heterogeneity of environmental protection law’s impact on firms’ pollutant discharge

Impacts of Carbon Pricing on Developing Economies

Implications of a Carbon Tax Mechanism in Remanufacturing Outsourcing on Carbon Neutrality

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