Economic-Environmental Analysis of Adoption of Green Tax Policy in Iran with Calculable General Balance Approach

Document Type : Research Article


1 PhD student in Resource and Environmental Economics, Department of Agricultural Economics, Marvdasht Branch, Islamic Azad University, Marvdasht, Iran.

2 Associate Professor, Department of Agricultural Economics, Marvdasht Branch, Islamic Azad University, Marvdasht, Iran

3 Assistant Professor, Department of Economics, Faculty of Shiraz Branch, Islamic Azad University, Shiraz, Iran,


Environmental taxes, as one of the axes of sustainable development of countries, are effective policies in the field of controlling environmental factors using economic tools. according to importance of subject, the main purpose of this research is to investigate the effects of adopting environmental tax on economic indicators including welfare and poverty among Iranian households with a calculable general equilibrium approach. Based on this, in this study, the amount of loss caused by the emission of each ton of pollutant was considered as the basis for environmental tax. The results of the study showed that after the adoption of the environmental tax policy, GDP (Gross Domestic Product), private sector consumption and the income of urban and rural households will experience a decrease. Therefore, in terms of welfare, Iranian households are in a worse situation than the basic conditions. On the other hand, while improving the tax revenue of the government, as expected, with the reduction in the level of production and consumption in the country, the amount of emissions of pollutants such as carbon dioxide, methane and nitrogen oxide will decrease.


Main Subjects

- جعفری‌صمیمی، احمد؛ و علیزاده‌ملفه، الهام، (1394). «شبیه سازی مالیات سبز بر رشد اقتصادی در ایران با کاربرد روش تعادل عمومی قابل محاسبه». فصلنامۀ پژوهش‌های رشد و توسعۀ اقتصادی، 22(6): 57-70.
- حسین‌زاده کندسری، زهرا؛ و مداح، مجید، (1397). «اثر مالیات بر تقاضای خانوارها بر کالاهای آلوده‌کنندۀ محیط‌زیست». فصلنامۀ علوم و تکنولوژی محیط‌زیست، 20 (3): 105-115.
- قرخلو، مهدی؛ و حسینی، سید هادی، (1386). «شاخص‌های توسعۀ پایدار شهری». جغرافیا و توسعۀ ناحیه‌ای، 8(5): 157-177.
- گرایی‌نژاد، غلامرضا؛ و چیردار، الهه، (1391). «بررسی عوامل مؤثر بر درآمدهای مالیاتی در ایران».  اقتصاد مالی، 6(20): 92-69.
- مزینی، امیرحسین؛ و مرادحاصل، نیلوفر، (1393). «بررسی اثر فعالیت‌های غیر رسمی اقتصادی بر آلودگی هوا، برآورد منحنی زیست‌محیطی کوزنتس». فصلنامه علوم و تکنولوژی محیط‌زیست، 16(3): 34-38.
- مقدسی، رضا؛ و طاهری، فرزانه، (1391). «پیامدهای اقتصادی و زیست‌محیطی مالیات بر آلودگی». تحقیقات اقتصاد کشاورزی. 4 (3): 77-111.
- Arora, N. K. & Mishra, I., (2019). United Nations Sustainable Development Goals 2030 and environmental sustainability. race against time.
- Beghin, J.; Dessus, S.; Ronald-Holst, D. & Mensbrugghe, V. D., (2002). “Empirical Modeling of Trade and Environment”. Trade and Environment in General Equilibrium: Evidence from Developing Economics, Chapter 3: 31-78.
- Bohringer, C. & Loschel, A., (2006). “Computable general equilibrium models for sustainability impact assessment: Status quo and prospects”. Ecological Economics, 60: 49–64.
- Dessus, S. & Bussolo, M., (1998). “Is there a trade-off between trade liberalization and pollution abatement?”. Journal of Policy Modeling, 20(1): 11-31.
- Fæhn, T. & Holmøy, E., (2003). “Trade liberalization and effects on pollutive emissions to air and deposits of solid waste. A general equilibrium assessment for Norway”. Economic Modeling, 20: 703-727.
- Farajzadeh, Z., (2012). “Envronmental and welfare impacts of trade energy policy reforms in Iran”. Ph.D thesis. Shiraz University. Shiraz.
- Farajzadeh, Z. & Bakhshoodeh, M., (2017). Trade reform in Iran for accession to the World Trade Organization: Analysis of welfare and environmental impacts Economic Modelling, Pages 75-85
- Jafari Samimi, A. & Alizadeh Melfeh, E., (2014). “Simulation of green tax on economic growth in Iran using calculable general equilibrium method”. Economic Growth and Development Research Quarterly, 22(6): 57-70.
- Hjorth, P. & Bagheri, A., (2006). “Navigating towards sustainable development: A system dynamics approach”. Futures, 38(1): 74-92.
- Hosseinzadeh Kandsari, Z. & Madah, M., (2017). “Effect of tax on household demand for environmentally polluting goods”. Environmental Science and Technology Quarterly, 20 (3): 105-115.
- Hu, X.; Sun, Y.; Liu, J.; Meng, J.; Wang, X.; Yang, H.; ... & Tao, S., (2019). “The impact of environmental protection tax on sectoral and spatial distribution of air pollution emissions in China”. Environmental Research Letters, 14(5.
- Garkhlo, M. & Hosseini, S. H., (2006). “Indices of sustainable urban development”. Geography and Regional Development, 8(5): 157-177.
- Garanjad, Gh. & Chirdar, E., (2011). “Investigation of factors affecting tax revenues in Iran”. Financial Economics, 6(20): 69-92.
- Lofgren, H., (1999). Exercises in general equilibrium modeling Using GAMS. International Food Policy Research Institute. Washington, D. C. United States.
- Ionescu, L., (2020). “Pricing Carbon Pollution: Reducing Emissions or GDP Growth?”. Economics, Management, and Financial Markets, 15(3): 37-43.
- Mazini, A. H. & Muradhatshil, N., (2013). “Investigating the effect of informal economic activities on air pollution, estimating the Kuznets environmental curve”. Environmental Science and Technology Quarterly, 16(3): 34-38.
- Metcalf, G. E., (2019). “On the economics of a carbon tax for the United States”. Brookings Papers on Economic Activity, 2019(1): 405-484.
- McDonald, S.; Thierfelder, K. & Robinson, S., (2007). Globe: A SAM based global CGE model using GTAP Data. Available at
- Moghdisi, R. & Taheri, F., (2011). “Economic and environmental consequences of pollution tax”. Agricultural Economics Research, 4 (3): 77-111.
- Moghimi, M.; Shahnooshi-Forooshani, N.; Danesh, S.; Akbari-Moghaddam, B. & Daneshvar, M., (2011). “Investigating welfare and environmental impacts of green tax and energy subsidy reduction using computable general equilibrium”. Agricultural Economics and Development, 75: 79-108.
- Pal, R. & Saha, B., (2015). “Pollution tax, partial privatization and environment”. Resource and Energy Economics, 40: 19-35.
- Wissema, W. & Dellink, R., (2007). “AGE analysis of the impact of a carbon energy tax on the Irish economy”. Ecological Economics, 61: 671-683.
- Zimmer, A. & Koch, N., (2017). “Fuel consumption dynamics in Europe: Tax reform implications for air pollution and carbon emissions”. Transportation Research Part A: Policy and Practice, 106: 22-50.