IDEAS home Printed from https://ideas.repec.org/a/wsi/ccexxx/v09y2018i01ns2010007818400109.html
   My bibliography  Save this article

U.S. Carbon Tax Scenarios And Bioenergy

Author

Listed:
  • RONALD D. SANDS

    (U.S. Department of Agriculture, Economic Research Service, Washington, D.C., USA)

Abstract

This paper documents application of the Future Agricultural Resources Model (FARM) to stylized carbon tax scenarios specified by the Stanford Energy Modeling Forum (EMF). Model results show that the method of tax revenue recycling makes a difference. Either labor-tax, or capital-tax, recycling can reduce the welfare cost of a carbon tax policy relative to lump sum recycling. Of the two tax recycling options, reducing capital taxes provides the greater reduction in welfare costs. However, carbon tax revenues decline with stringent carbon dioxide (CO2) emission targets and the availability of a negative-emissions technology such as bio-electricity with CO2 capture and storage (BECCS). As BECCS expands, net carbon tax revenues peak and decline due to an offsetting subsidy for carbon sequestration, limiting the potential for labor- or capital-tax recycling to reduce welfare costs of a climate policy.

Suggested Citation

  • Ronald D. Sands, 2018. "U.S. Carbon Tax Scenarios And Bioenergy," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 9(01), pages 1-12, February.
    • Handle: RePEc:wsi:ccexxx:v:09:y:2018:i:01:n:s2010007818400109
    DOI: 10.1142/S2010007818400109
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S2010007818400109
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S2010007818400109?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ronald Sands & Hannah Förster & Carol Jones & Katja Schumacher, 2014. "Bio-electricity and land use in the Future Agricultural Resources Model (FARM)," Climatic Change, Springer, vol. 123(3), pages 719-730, April.
    2. Bruno Lanz & Thomas F Rutherford, 2016. "GTAPinGAMS: Multiregional and Small Open Economy Models," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 1(2), pages 1-77, December.
    3. Sands, Ronald D. & Malcolm, Scott A. & Suttles, Shellye A. & Marshall, Elizabeth, 2017. "Dedicated Energy Crops and Competition for Agricultural Land," Economic Research Report 252445, United States Department of Agriculture, Economic Research Service.
    4. Darwin, Roy & Tsigas, Marinos E. & Lewandrowski, Jan & Raneses, Anton, 1995. "World Agriculture and Climate Change: Economic Adaptations," Agricultural Economic Reports 33933, United States Department of Agriculture, Economic Research Service.
    5. Sands, Ronald & Jones, Carol & Marshall, Elizabeth P., 2014. "Global Drivers of Agricultural Demand and Supply," Economic Research Report 186137, United States Department of Agriculture, Economic Research Service.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. James R. Mcfarland & Allen A. Fawcett & Adele C. Morris & John M. Reilly & Peter J. Wilcoxen, 2018. "Overview Of The Emf 32 Study On U.S. Carbon Tax Scenarios," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 9(01), pages 1-37, February.
    2. Dong-Xiao Yang & Lei Yang & Xiao-Ling Chen & Chan Wang & Pu-Yan Nie, 2023. "Research on credit pricing mechanism in dual-credit policy: is the government in charge or is the market in charge?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(2), pages 1561-1581, February.
    3. Dumortier, Jerome & Elobeid, Amani, 2021. "Effects of a carbon tax in the United States on agricultural markets and carbon emissions from land-use change," Land Use Policy, Elsevier, vol. 103(C).
    4. Allen A. Fawcett & James R. Mcfarland & Adele C. Morris & John P. Weyant, 2018. "Introduction To The Emf 32 Study On U.S. Carbon Tax Scenarios," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 9(01), pages 1-7, February.
    5. Shuyang Chen, 2022. "The inequality impacts of the carbon tax in China," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-10, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sands, Ronald D. & Malcolm, Scott A. & Suttles, Shellye A. & Marshall, Elizabeth, 2017. "Dedicated Energy Crops and Competition for Agricultural Land," Economic Research Report 252445, United States Department of Agriculture, Economic Research Service.
    2. Sands, Ronald & Jones, Carol & Marshall, Elizabeth P., 2014. "Global Drivers of Agricultural Demand and Supply," Economic Research Report 186137, United States Department of Agriculture, Economic Research Service.
    3. Sands, Ronald D., 2020. "Global Diets and Demand for Calories from Crops," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304601, Agricultural and Applied Economics Association.
    4. Winchester, Niven & Reilly, John M., 2020. "The economic and emissions benefits of engineered wood products in a low-carbon future," Energy Economics, Elsevier, vol. 85(C).
    5. Hafner, Marco & Yerushalmi, Erez & Andersson, Fredrik L. & Burtea, Teodor, 2020. "Quantifying the macroeconomic cost of night-time bathroom visits: an application to the UK," CAFE Working Papers 5, Centre for Accountancy, Finance and Economics (CAFE), Birmingham City Business School, Birmingham City University.
    6. Sohngen, Brent & Mendelsohn, Robert & Sedjo, Roger A., 2001. "A Global Model Of Climate Change Impacts On Timber Markets," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(2), pages 1-18, December.
    7. Weng, Yuwei & Chang, Shiyan & Cai, Wenjia & Wang, Can, 2019. "Exploring the impacts of biofuel expansion on land use change and food security based on a land explicit CGE model: A case study of China," Applied Energy, Elsevier, vol. 236(C), pages 514-525.
    8. Wan-Jiun Chen & Jihn-Fa Jan & Chih-Hsin Chung & Shyue-Cherng Liaw, 2023. "Agriculture Risks and Opportunities in a Climate-Vulnerable Watershed in Northeastern Taiwan—The Opinions of Leisure Agriculture Operators," Sustainability, MDPI, vol. 15(20), pages 1-22, October.
    9. Edward J. Balistreri & Daniel T. Kaffine & Hidemichi Yonezawa, 2019. "Optimal Environmental Border Adjustments Under the General Agreement on Tariffs and Trade," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(3), pages 1037-1075, November.
    10. Monge, Juan J. & Bryant, Henry L. & Gan, Jianbang & Richardson, James W., 2016. "Land use and general equilibrium implications of a forest-based carbon sequestration policy in the United States," Ecological Economics, Elsevier, vol. 127(C), pages 102-120.
    11. Sheng, Yu & Zhao, Shiji & Yang, Sansi, 2021. "Weather shocks, adaptation and agricultural TFP: A cross-region comparison of Australian Broadacre farms," Energy Economics, Elsevier, vol. 101(C).
    12. Alvaro Calzadilla & Katrin Rehdanz & Richard Betts & Pete Falloon & Andy Wiltshire & Richard Tol, 2013. "Climate change impacts on global agriculture," Climatic Change, Springer, vol. 120(1), pages 357-374, September.
    13. Richard S.J. Tol & Samuel Fankhauser & Richard G. Richels & Joel B. Smith, 2000. "How Much Damage Will Climate Change Do? Recent Estimates," Working Papers FNU-2, Research unit Sustainability and Global Change, Hamburg University, revised Sep 2000.
    14. Ruslana Rachel PALATNIK, 2008. "Climate Change Assessment and Agriculture in General Equilibrium Models: Alternative Modeling Strategies," EcoMod2008 23800101, EcoMod.
    15. Khabbazan, Mohammad M. & von Hirschhausen, Christian, 2021. "The implication of the Paris targets for the Middle East through different cooperation options," Energy Economics, Elsevier, vol. 104(C).
    16. Heinz-Peter Witzke & Pavel Ciaian & Jacques Delince, 2014. "CAPRI long-term climate change scenario analysis: The AgMIP approach," JRC Research Reports JRC85872, Joint Research Centre.
    17. Enrica De Cian & Ilkka Keppo & Johannes Bollen & Samuel Carrara & Hannah Förster & Michael Hübler & Amit Kanudia & Sergey Paltsev & Ronald D. Sands & Katja Schumacher, 2013. "European-Led Climate Policy Versus Global Mitigation Action: Implications On Trade, Technology, And Energy," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 4(supp0), pages 1-28.
    18. Pohit, Sanjib, 2013. "Land degradation and trade liberalization: an Indian perspective," MPRA Paper 44496, University Library of Munich, Germany.
    19. Böhringer, Christoph & Rutherford, Thomas F. & Schneider, Jan, 2021. "The incidence of CO2 emissions pricing under alternative international market responses," Energy Economics, Elsevier, vol. 101(C).
    20. Martinsohn, Maria & Hansen, Heiko, 2012. "The Impact of Climate Change on the Economics of Dairy Farming – a Review and Evaluation," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 61(02), pages 1-16, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:ccexxx:v:09:y:2018:i:01:n:s2010007818400109. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/cce/cce.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.