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The objective of this chapter is to investigate the potential economic impacts of a carbon tax on energy consumption, GDP, welfare and CO2 emissions in the Lao People's Democratic Republic. It employs the GTAP-E (Global Trade Analysis Project-Energy/Environment) model and the GTAP database version 11 with a base year of 2017. The simulation results show that the carbon tax reduced both economic growth and welfare; indeed, the greater the increase in the carbon tax, the more GDP and welfare declined. On the other hand, however, the carbon tax does also lead to a significant decline in CO2 emissions. The more the carbon tax increases, the greater the reduction in CO2 emissions. Therefore, the government should consider imposing a carbon tax.

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The Potential Economic Impacts on the Lao PDR of CO2 Emission Reductions Achieved Through the Imposition of a Carbon Tax

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  • 发表日期：

    2025年

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  • Phouphet Kyophilavong,
  • Han Phoumin,
  • Geoffrey Musyoki Kitetu,
  • Phongsili Soukchalern

摘要

The objective of this chapter is to investigate the potential economic impacts of a carbon tax on energy consumption, GDP, welfare and CO2 emissions in the Lao People's Democratic Republic. It employs the GTAP-E (Global Trade Analysis Project-Energy/Environment) model and the GTAP database version 11 with a base year of 2017. The simulation results show that the carbon tax reduced both economic growth and welfare; indeed, the greater the increase in the carbon tax, the more GDP and welfare declined. On the other hand, however, the carbon tax does also lead to a significant decline in CO2 emissions. The more the carbon tax increases, the greater the reduction in CO2 emissions. Therefore, the government should consider imposing a carbon tax.