This study employs the dynamic recursive Computable General Equilibrium (CGE) approach to model Australia’s economy. This carbon tax policy is designed based on Australia’s economy, starting at A$23/tCO2, increasing over time and imposing uniformly on all industries. This study proposes two carbon tax policies and three revenue recycling approaches, and the prices and GDP variations are estimated during 2020 and 2035. This study confirms introducing a carbon tax policy decreases Australia’s carbon emissions and reduces real consumption and GDP if it is not accompanied by a revenue recycling policy.
Period
12 Apr 2023 → 14 Apr 2023
Event title
Financial Market and Corporate Governance Conference: FMCG2023