Economic evaluation of the effects of exerting green tax on the dispersion of bioenvironmental pollutants based on multi-regional general equilibrium model (GTAP-E)

ABSTRACT

The present study calculates the temporal value of energy money based on green scenario of tax on the dispersion of bioenvironmental pollutants using global trade analysis project-energy substitution (GTAP-E) and investigates the changes brought about in carbon dioxide, GDP along with CIF for 2016 in Iran and eventually presents an evaluation of such sectors as coal, oil, gas, and petroleum products. The results indicated that the implementation of green tax scenario along with technological progress causes reduction by −0.19% in temporal value of pollution money in coal sector and the effect of monetary value of energy carriers on oil was also found reduced by −0.67% and the percentage reduction is about −0.1 in contrast to the other countries. At first, the direct and indirect coefficients (Leontief inverse) and the multiplying coefficients of bioenvironmental pollutants were computed using input-output matrix table technique. It was figured out that the highest pollution is caused by CO₂ in this sector. But, the highest pollution in agriculture and mine sectors, substantially as a result of gasoil consumption, is caused by CO that is currently showing an ascending trend. Thus, it is recommended that the government should provide with the possibility of having access to modern global technologies via making imports. In the energy sector, Iran is recommended to reduce its CO₂ production compared to what is currently being produced. The speed of pollutants emissions can be reduced by raising taxes in the energy sector.

KEYWORDS:

• Dispersion
• equilibrium multiregional general equilibrium (GTAP-E)
• temporal value of money

Notes

1. value of merchandise regional imports, by commodity, CIF.