Economic Effects of a Tax Policy to Reduce Greenhouse-Gas Emissions in Brazil

Authors

  • Yuri Cesar de Lima e Silva
    • Luis Savio Barbosa Dantas
      • Nelson Leitao Paes Universidade Federal de Pernambuco Universidade Federal do Mato Grosso

        DOI:

        https://doi.org/10.5380/re.v41i75.68240

        Keywords:

        Taxes, Emissions, Double Dividend, Growth Model, Environment Policy

        Abstract

        Brazil has proposed to reduce emissions by 37% below 2005 levels in 2025, and for indicative purposes, to further reduce it by 43% in 2030, following the agreement of COP-21 in Paris. This study seeks to investigate the macroeconomic effects if Brazil adopts a GHG emissions tax to meet the carbon reduction commitment and to simulate the thesis of "double dividend". A neoclassical growth model with the introduction of environment and fiscal policy was used. A tax rate on CO2 emissions of US$ 100.00/tCO2e would be enough to meet Brazil´s target of emission reduction. The double dividend hypothesis was observed in Brazil’s case and the best results occur when capital income tax is reduced.

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        Author Biography

        Nelson Leitao Paes, Universidade Federal de Pernambuco Universidade Federal do Mato Grosso

        Professor da Pós-Graduação em Economia da UFPE e da UFMT

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        Published

        2020-06-30

        How to Cite

        de Lima e Silva, Y. C., Dantas, L. S. B., & Paes, N. L. (2020). Economic Effects of a Tax Policy to Reduce Greenhouse-Gas Emissions in Brazil. Revista De Economia, 41(75). https://doi.org/10.5380/re.v41i75.68240

        Issue

        Vol. 41 No. 75 (2020)

        Section

        Artigos

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