Effect of Pollution Tax Policies on Change of Household Demand, Economic Structure and Environmental Load : A Case Study of Thai Economy
Year: 2012
Type: article
Abstract: This study focuses on investigating the effects of pollution tax policy on three fundamental commodity groups, i. e. Electricity, Fuel, and Water with the change of household expenditure, economic structural growth, and pollutant emission of Thailand in both short-term and long-term analyses. Four models, namely Household Demand Model, Price Elasaticity Model, Input Output Model, and Pollutant Emission Model, are applied to analyse those empirical data of Thailand.\nResults from the short-term analysis show that the pollution tax policy on Electricity, Fuel, and Water effect only on their commodity prices themselves. However, the pollution tax in the long-term analysis boosts not only the prices of commodity, which the pollution tax is imposed on, but also the prices of other commodities, which the pollution tax is not imposed directly on, in the economy.\nThe household consumption and economic structural changes in the long-term analysis are significantly different from the short-term analysis. The impacts on household consumption in the long-term are higher and wider than that in the short-term. Moreover, the ranks of impact level on each production sector in the long-term are not same as that in the short-term. The pollution tax on Fuel is more effective to reduce the Greenhouse Gas (GHG) emission than the pollution tax on the other commodities.
DOI: 10.24561/00015078
Author: Thoedsak Chomtohsuwan
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
SDG: Climate action
Open Access status: green
OpenAlex ID: W583264333