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GTAP Resource #4288

"The Double Dividend Hypothesis in a CGE Model: Specific Factors and the Carbon Base"
by Waschik, Robert and Iain Fraser

We use a Computable General Equilibrium model to empirically examine the Double Dividend (DD) hypothesis. Using the GTAP model data for Australia, we examine three environmental taxes on the production of energy goods. Following Bento and Jacobsen (2007), we examine the role played by specific factors in the production of energy goods. Our results provide support for the existence of a strong DD in Australia when revenue is recycled through reductions in consumption taxes. The strong DD is larger the higher the share of specific factors, and is much more pronounced when carbon taxes are charged on the production (origin-based accounting) rather than the usage (destination-based accounting) of carbon. These results draw attention to the importance of the definition of the carbon base and have implications for the scale of carbon leakage.

Resource Details (Export Citation) GTAP Keywords
Category: Other CGE Application
Status: Published
By/In: Energy Economics
Date: 2013
Created: Waschik, R. (9/12/2013)
Updated: Batta, G. (9/13/2013)
Visits: 1,085
- Climate change policy
- Oceania

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