The Economic Effects of CO2 Abatement Polices:the Endogenous Growth Model Embodied Energy-Saving Technology

• Main Authors: Lin, I-Hsuan, 林逸軒
• Other Authors: Lee, Tsung-Chen
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/05304777819371366661

碩士 === 國立臺北大學 === 經濟學系 === 95 === In this paper, the endogenous growth model developed by van Zon and Yetkiner (2003) is extended to explore the relationship among energy use, CO2 abatement, and economic growth. We illustrate how energy policy, climate policy, and R&D subsidy policy should be designed and coordinated so that the CO2 abatement target is achieved without affecting economic growth. The focus of this paper is to compare the effect of energy tax on economic growth with that of carbon tax, given the same CO2 abatement target. Besides, the scenarios of tax recycling as a subsidy on R&D under these two tax regimes are analyzed. The insights which emerge from this paper are summarized as follows. First, the effect of carbon tax on economic growth and that of energy tax are both negative. Their relative magnitudes hinges crucially on the levels of abatement intensity. When the level of abatement intensity is sufficiently low, the negative effect of carbon tax is smaller than that of energy tax; and vice versa. Second, the results of tax recycling scenarios show that subsidizing R&D would lead to an improvement in energy-saving technology. The relative magnitudes of the economic effects under these two tax regimes also depend on the levels of abatement intensity. When the level of abatement intensity is sufficiently low, the economic growth rate of carbon tax regime is higher than that of energy tax; and vice versa.