Work

Socio-economic and environmental impacts of intended decarbonisation policies in the East Asia region

Year: 2025

Type: article

Abstract: Given the rising levels of carbon emissions , governments in the East Asia region are exploring effective decarbonization policies. This study examines the socio-economic and environmental implications of these policies using a computable general equilibrium model that captures the closed linkages between the economy and climate change . Our findings suggest that the intended decarbonization policy, aimed at accelerating technology transfer, may not always reduce carbon emissions . However, incorporating Carbon Capture and Storage (CCS) technology into existing coal power plants and implementing a carbon tax could significantly reduce carbon emissions in all countries in the region. The paper suggests implementing carbon tax policy to reduce carbon emissions, retrofitting CCS technology in coal-based electricity powerplants , and developing renewable electricity at the same time as controlling emissions from non-renewable energy. These policies, however, need some supplement policy strategies to compensate for the potential output contraction due to the tax .

Source: Regional Science Policy & Practice

DOI: 10.1016/j.rspp.2025.100191

Authors: Yuventus Effendi, Budy P. Resosudarmo

Institutions: Ministry of Finance, Australian National University

Language: English

Topic: Climate Change Policy and Economics

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Climate action, Affordable and clean energy, Industry, innovation and infrastructure

Open Access status: gold

Estimated APC paid: $1,596