Work

The Environmental and Employment Effect of Australian Carbon Tax

Year: 2014

Type: article

Abstract: The paper employs a computable general equilibrium (CGE) model with an environmentally-extended Social Accounting Matrix (SAM) to simulate the effects of a carbon tax of $23 per tonne of carbon dioxide on different economic agents, with and without a compensation policy.According to the simulation results, the carbon tax can cut emissions effectively, but will cause a mild economic contraction.The proposed compensation plan has little impact on emission cuts while significantly mitigating the negative effect of a carbon tax on the economy.The effect on various employment occupations is mildly negative, ranging from -0.6% to -1.7%, with production and transport workers worst affected.

Source: International Journal of Social Science and Humanity

DOI: 10.7763/ijssh.2015.v5.510

Authors: Xianming Meng, Mahinda Siriwardana, Judith McNeill

Language: English

Topic: Climate Change Policy and Economics

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Climate action

Open Access status: bronze

Funder: Australian Research Council

Award: Improving our understanding of the effects of low carbon policies on the Australian economy and regions