기후변화 대응을 위한 탄소세 도입방안

Abstract

Recent upshot in worldwide recognition of global warming has driven the public to forward its best effort toward reduction of greenhouse gases (GHGs). Keeping pace with such a global trend to abate GHGs emissions, Korea as one of the largest GHGs emitting countries has announced a midterm GHGs emission reduction target by 30 per cent from BAU by 2020. The carbon tax and carbon emission trading system are two of the most often discussed market-based economic instruments to cut GHG emissions. As is usually acknowledged, the carbon tax asks fossil fuel users to make direct payments to the government based on the carbon contents of the fuels being consumed. Considering that the primary goal of the abatement policy is to cut GHG emissions, the carbon tax can prove to be a possible alternative because it directly taxes the externality. Based on the assumption Korea would choose the carbon tax as the main tool to cut GHG emissions, this study focuses on the impact of the carbon tax on the Korean economy. The objective was two fold; we reviewed the feasibility of the introduction of the carbon tax in Korea while also trying to measure the impact of the carbon tax on the Korean economy. To this end, this paper also analyzed the distributional impact of the carbon tax imposition on several fossil fuels. The results suggested that a carbon tax introduction in Korea may be regressive. By employing the dynamic general equilibrium model, we also presented a brief overview of benefits of choosing a specific option for recycling revenues from carbon taxes. The results suggested that CPI, real GDP, real consumption, export, and import would decrease as a result of instituting the carbon tax, but the specific degrees were different according to the types of options chosen for revenue recycling.