Using input-output models to estimate sectoral effects of carbon tax policy
Applications of the NGFS scenarios
Bibliographic Data
| ID | 2801367 |
|---|---|
| Authors | David Kay (0000-0002-4555-1979, Corporate Economics Group Wells Fargo & Company Charlotte North Carolina USA), G Jason Jolley (0000-0003-3915-590X, Voinovich School of Leadership and Public Service Ohio University Athens Ohio USA, corresponding author) |
| Year | 2023 |
| Volume | 82 |
| Issue | 3 |
| Pages | 187-222 |
| Publication date | 2023-05-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | American Journal of Economics and Sociology (JOURNAL) |
| Journal identifiers | ISSN: 0002-9246 • E-ISSN: 1536-7150 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/ajes.12503 |
| OpenAlex | W4321373801 |
| Language | EN |
| Citations received | 4 |
| References cited | 26 |
The Network of Central Banks and Supervisors for Greening the Financial System (NGFS) has engaged in scenario analysis that estimates a $200/ton carbon tax would be required to transition to net zero carbon by 2050. Using a $200/ton carbon tax as a base, this paper uses input-output (IO) modeling to generate price and revenue effects of a carbon tax. Results from these models, which can only be interpreted as the short-run, upper-bound effects of the carbon tax policy, imply that in response to a $200/ton tax on CO2e emissions, carbon-intensive industries, such as agriculture, extraction, transportation, utilities, and chemicals, may experience price increases in the range of 10-30 percent. Other industries will also experience price increases, but to a lesser degree, due to increased input costs associated with the tax. In addition, modeling results also suggest that industries facing elastic pricing regimes may face similar-sized declines in revenues as a consequence of the carbon tax. Rank-ordered impact results from these models can be utilized by bank supervisors and firms to adequately plan for sectoral-level transition risk within their lending and/or investment portfolios
Carbon fibers · Carbon tax · Economics · Greenhouse gas · Investment (military) · Monetary economics · Natural resource economics · Order (exchange) · Revenue · Climate Change Policy and Economics · Computer Science · Environmental Impact and Sustainability · Finance · Fiscal Policy and Economic Growth
| Unique citing works | 4 |
|---|---|
| Citations per year | 2 |
| Citation span | 2024 - 2026 (3) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 4 |