| 来源类型 | Research papers
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| 规范类型 | 报告
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| Evaluating the Differential Effects of Alternative Emission Reduction Policy Instruments on Income Equality |
| K. S. Oh
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| 发表日期 | 2013-12-31
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| 出版年 | 2013
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| 语种 | 英语
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| 摘要 | ABSTRACT
This paper estimates the effect of emission reduction policy tools on income inequality unlike other studies in Korea that focus on various macroeconomic effects.
The first done in this paper is constructing a social accounting matrix in which a household sector is divided into forty households based on income. Dividing a household sector in input-output table into several households is the first try in Korea.
The matrix is used in calibrating a computable general equilibrium (CGE) model. This paper considers one country static model with a small open economy. The economy has the twenty one industries (commodities) and the production and demand functions of commodities are expressed as CES(Constant Elasticity of Substitution). The CGE model is coded with MPSGE (Mathematical Programming System for General Equilibrium Analysis).
The distribution effect is analyzed with various emission reduction policy options. In particular, a emission trading system has several dimensions including the scope of application, the ratio of grandfathering, and the ratio of oversees credit. Two revenue recycling methods are compared between lump-sum transfer and labor income reduction. Besides, the cost of reduction of industrial process emission is taken into consideration. When comparing the effects of one or two factors, other factors are set to specific scenarios: 0% for grandfathering ratio, 0% for oversees credit, lump-sum transfer for revenue recycling, and infinity for cost of reduction of industrial process emission.
Extending the emission trading system up to all sectors alleviates GDP reduction as well as brings about positive effect on income distribution, compared with applying the emission trading system only to industry sectors. Increasing grandfathering ratio intensifies GDP reduction and aggravates income distribution. Allowing oversees credit narrows GDP reduction and improves income inequality but increasing oversees credit limit does not have any extra impact on income distribution although it continues to mitigate GDP reduction. Lower industrial process emission reduction cost is related to narrower GDP reduction but makes income distribution worse. Finally, comparing effects of two different revenue recycling methods, lump-sum transfer favors low income groups while reduction of labor income tax rate does not influence income distribution. This paper seems to derive different result from previous ones in the effect of reduction of income tax rate because of unrealistic assignment of income tax. According to the result of this paper, we could infer that reduction of income tax rate with realistic assignment of income tax aggravates income distribution like previous studies. |
| URL | http://www.keei.re.kr/web_keei/en_publish.nsf/by_report_year/D459B1D578E775ED49257C75003ACECC?OpenDocument
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| 来源智库 | Korea Energy Economics Institute (Republic of Korea)
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| 资源类型 | 智库出版物
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| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/322791
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推荐引用方式
GB/T 7714 |
K. S. Oh. Evaluating the Differential Effects of Alternative Emission Reduction Policy Instruments on Income Equality. 2013.
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