Environmental tax reform in Vietnam: An ex ante general equilibrium assessment

Willenbockel, Dirk (2011): Environmental tax reform in Vietnam: An ex ante general equilibrium assessment.

Abstract

Vietnam is planning to implement a new environmental tax law in 2012. The objective of the study is to provide a predictive quantitative evaluation of the impacts of the proposed draft environmental tax law of Vietnam on producer and user prices, sectoral output and employment, the commodity structure of demand, government tax revenue, CO2 emissions and household welfare. The assessment is based on a multisectoral computable general equilibrium (CGE) model calibrated to a new social accounting matrix that represents the current structure of the Vietnamese economy. The model distinguishes 33 production sectors, 20 household groups, and incorporates a sophisticated treatment of energy substitution in production, allowing substitution possibilities between liquid fuels and gas, coal, and electricity as well as technology switches towards less energy‐intensive modes of production.

• Item Type: MPRA Paper
• Language: English
• Keywords: Low-carbon growth; Fossil fuel taxation; Green growth
• Subjects: C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C68 - Computable General Equilibrium Models; H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H23 - Externalities ; Redistributive Effects ; Environmental Taxes and Subsidies; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture ; Natural Resources ; Energy ; Environment ; Other Primary Products; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q48 - Government Policy; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q52 - Pollution Control Adoption and Costs ; Distributional Effects ; Employment Effects

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