Green Tax Reform in Australia in the Presence of Improved Environment-Induced Productivity Gain: Does It Offer Sustainable Recovery from a Post-COVID-19 Recession?
| Autor: | Kerstin K. Zander, Maruf Rahman Maxim |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2020 |
| Předmět: |
Computable general equilibrium
Macroeconomics 020209 energy media_common.quotation_subject Geography Planning and Development lcsh:TJ807-830 lcsh:Renewable energy sources triple dividend 02 engineering and technology Management Monitoring Policy and Law Tax reform Recession Tax revenue 0502 economics and business 0202 electrical engineering electronic engineering information engineering Economics Energy tax positive externality 050207 economics Productivity lcsh:Environmental sciences media_common lcsh:GE1-350 Renewable Energy Sustainability and the Environment CGE modelling lcsh:Environmental effects of industries and plants 05 social sciences energy tax lcsh:TD194-195 Economic recovery Payroll tax green tax reform |
| Zdroj: | Sustainability Volume 12 Issue 16 Sustainability, Vol 12, Iss 6514, p 6514 (2020) |
| ISSN: | 2071-1050 |
| DOI: | 10.3390/su12166514 |
| Popis: | Disasters and pandemics such as COVID-19 will change the world in many ways and the road to redemption from the ongoing economic distress may require a novel approach. This paper proposes a path towards economic recovery that keeps sustainability at the forefront. A computable general equilibrium model is used to simulate different green tax reform (GTR) policies for triple dividend (TD), consisting of lower emissions, higher GDP and higher employment. The GTR design consists of an energy tax coupled with one of three tax revenue recycle methods: (i) reduction of payroll tax, (ii) reduction of goods and services tax (GST) and (iii) a mixed-recycling approach. The paper also presents the impact of higher productivity on the tax reform simulations, which is a possible positive externality of lower emissions. The study is based on the Australian economy and the salient findings are twofold: (i) productivity gain in the GTR context improves the GDP and employment outcomes in all three different simulation scenarios and (ii) GST reduction has the highest TD potential, followed by reduction of payroll tax. |
| Databáze: | OpenAIRE |
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