Macroeconomic Effects of Carbon and Energy Taxes in an Endogenous Growth Model
정인섭* ․ 이지웅**†
Chung, Insup* and Lee, Jiwoong**†
This paper analyzes the macroeconomic effects of carbon and energy taxes using an R&D-based endogenous growth model that includes carbon reduction technology. We compare a scenario in which a government develops carbon reduction technology with one in which a private firm is in charge. We find that an energy tax is more effective when a government develops carbon reduction technology, while a carbon tax is better when a private firm develops reduction technology. In addition, degree of carbon emission elasticity causes the difference between the scenarios. Even in an economy with only a carbon tax, the degree of carbon emission elasticity greatly influences the economic growth rate and social welfare. This finding implies that policy design should consider carbon emission elasticity if carbon and energy taxes are introduced simultaneously.
1402-07.pdf
