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PDF(2.7mb) - 國家政策研究基金會

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A Synthesis of Energy Tax, Carbon Tax and Emission Trading in Taiwan 231<br />

A Synthesis of Energy Tax, Carbon Tax and<br />

Emission Trading in Taiwan<br />

LIANG, Chi-yuan<br />

Abstract<br />

This paper compares the effects of energy tax and carbon tax on the economy with the<br />

reduction of carbon dioxide emissions in Taiwan. It also compares the merits and demerits<br />

of carbon tax and the emission trading system and synthesizes energy tax, carbon tax and<br />

emission trading in Taiwan. The simulation model employed in the paper is the Dynamic<br />

General Equilibrium Model of Taiwan (DGEMT).<br />

One major finding is that the negative impact of carbon tax is only one third of the<br />

similar impact of energy tax in reaching the same amount of carbon dioxide emissions to be<br />

reduced. The government should levy carbon tax instead of the energy tax that is planning<br />

to collect. Another finding is that carbon tax is fairer, more acceptable, more timely, and<br />

easier to enforce and more cost-effective than emission trading. However, to enhance the<br />

effectiveness in emission reduction and demand the big emitters such as power companies<br />

and energy-intensive industries to share more reduction obligations, the government had<br />

better impose carbon tax and emission trading at the same time.

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