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

Document Type : Research Article

Authors

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,

Abstract

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.

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References

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Journal of Applied Economics Studies in Iran
Volume 11, Issue 42
August 2022
Pages 195-218

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