| Author | Timilsina, Govinda Raj |
| Call Number | AIT Diss. no. ET-01-01 |
| Subject(s) | Greenhouse gas mitigation--Thailand
|
| Note | A dissertation submitted in partial fulfillment of the requirement for the degree of Doctor
of Engineering., School of Environment, Resources and Development |
| Publisher | Asian Institute of Technology |
| Series Statement | Dissertation ; no. ET-01-01 |
| Abstract | The main objective of this study is to analyze economic and environmental effects of
(i) carbon tax and (ii) the clean development mechanism (CDM) under the Kyoto Protocol
of the United Nations Framework Convention on Climate Change (UNFCCC) for reducing
carbon emission in a developing country, Thailand. A multi-sectoral, social accounting
matrix (SAM) based static general equilibrium model of the Thai economy has been
developed for this purpose in the study.
The study analyzes economic and environmental impacts of a carbon tax under the
alternative schemes to recycle the tax revenue. The revenue recycling schemes considered
here are: (i) using the. tax revenue for government or public consumption, (ii) recycling it
to households through a lump-sum transfer, (iii) using it to finance cuts in existing labor
tax rate and (iv) using it to finance cuts in existing indirect tax rates of non-energy goods.
The study finds that the economic impacts of the carbon tax, such as reductions in welfare,
gross domestic product and gross output, are significantly affected by revenue recycling
schemes, but that the environmental impacts (i.e., reduction in C02, S02 and NOx
emissions) are not. The carbon tax with revenue used for public consumption is found to
cause a greater welfare loss than that with other revenue recycling schemes. On the other
hand, the carbon tax with revenue used to finance cuts in the existing indirect tax rates of
non-energy goods is found to result in the sm'!.llest welfare loss. The findings of the study
support the existence of 'weak double dividend', but not the 'strong double dividend' with
the introduction of a carbon tax in Thailand.
The study also examines the general equilibrium effects of a scheme in which a
developing country (here Thailand) introduces a carbon tax for mitigating GHG emissions
and exports the emission mitigation as certified emission reductions (CER) units under the
CDM (i.e., the 'Unilateral CDM'). It is found that the unilateral CDM with the carbon tax
and CER revenues recycled to finance cuts in the existing indirect tax rates of non-energy
goods would improve economic welfare even at a very low CER price ( < US$2/tC02). In
contrast, the unilateral CDM would not improve economic welfare even if the CER price is
raised to a very high level (> US$200/tC02) when the revenues are used for public
consumption. Furthermore, the study analyzes the effectiveness of a carbon tax for
reducing carbon emission as compared to sulfur-, energy- and output- taxes. It is found that
the effectiveness of a tax instrument, measured in terms of its welfare effects, depends on
the tax revenue-recycling scheme. The carbon tax is found to be the most efficient tax
instrument as compared to sulfur-, energy- and output-taxes to reduce to the same level of
C02 emissions so long as the tax revenue is recycled to finance cuts in existing labor or
indirect tax rates. If the tax revenue is recycled to public or private consumption in a lumpsum
manner, the sulfur tax is found to be the most efficient tax instrument to reduce C02
emissions in Thailand.
The study analyzes the economic and environmental implications of selected supplyand
demand-side CDM options. The supply side CDM option considered here is
substitution of thermal power generation by hydropower, while the demand side CDM
option considered is the use of efficient electrical appliances in households instead of
conventional (i.e., less efficient) appliances. It is found that the supply side option would
increase economic welfare. Moreover, the welfare would increase with rate of substitution
and the CER prke. The demand side option is found to cause welfare loss. The loss would
not be offset even if the price of CER were raised to a lever' of US$25/tC02. |
| Year | 2001 |
| Corresponding Series Added Entry | Asian Institute of Technology. Dissertation ; no. ET-01-01 |
| Type | Dissertation |
| School | School of Environment, Resources, and Development (SERD) |
| Department | Department of Energy and Climate Change (Former title: Department of Energy, Environment, and Climate Change (DEECC)) |
| Academic Program/FoS | Energy and Environment (EE) |
| Chairperson(s) | Shrestha, Ram M.; |
| Examination Committee(s) | Lefevre, Thierry;Amin, A.T.M. Nurul;Eckaus, Richard S.; |
| Scholarship Donor(s) | Government of France; |
| Degree | Thesis (Ph.D.) - Asian Institute of Technology, 2001 |