abstract: 'The environmental taxes, such as carbon tax, also affect other economic

  variables in a different way in addition to the main goal of

  politicians. The carbon tax aims to reduce energy consumption and

  pollutant emissions, while it can also reduce labor tax and labor costs

  which are incentives to create new jobs. It is necessary to evaluate the

  carbon taxation policy in Iran due to the special circumstances of the

  budget deficit mainly caused by the decline of exports and oil revenues.

  The present study is based on a general equilibrium model in the form of

  a nonlinear equations system. The model has been calibrated for the 2017

  reference year using the data table adopted from Iran''s economy. It has

  been shown that if the carbon tax revenue is employed to decrease the

  labor income tax, the environmental quality will be improved by reducing

  pollutant emissions on the one hand, and it will lead to positive

  effects on the welfare and employment on the other hand. In the present

  paper, the effect of applying this tax on two policies with

  redistribution (compensation) and without redistribution (no

  compensation) of income tax among the households is examined. Maximum,

  minimum, and optimal values of pollutant emissions reduction under the

  influence of carbon tax policies were calculated in both scenarios. The

  simulation results show that the taxation without redistribution of tax

  revenues decreases the welfare and household''s actual consumed budget by

  6.2\%, but in policy with compensation of tax revenue, these indices

  will increase by 0.8\%. The gross domestic product (GDP) decreases by

  about 1.7\% and 2.1\% in both policies, respectively, while the consumer

  price index (CPI) in both scenarios will increase by about 6.4\% and

  8\%, respectively. According to this research findings, carbon taxation

  with the redistribution of revenue is a suitable policy to reduce

  greenhouse gas emissions and adhere to international commitments at the

  same time.'
affiliation: 'Hajinezhad, A (Corresponding Author), Univ Tehran, Fac New Sci \& Technol,
  Dept Renewable Energy \& Environm, Tehran, Iran.

  Moosavian, Seyed Farhan; Zahedi, Rahim; Hajinezhad, Ahmad, Univ Tehran, Fac New
  Sci \& Technol, Dept Renewable Energy \& Environm, Tehran, Iran.'
author: Moosavian, Seyed Farhan and Zahedi, Rahim and Hajinezhad, Ahmad
author-email: hajinezhad@ut.ac.ir
author_list:
- family: Moosavian
  given: Seyed Farhan
- family: Zahedi
  given: Rahim
- family: Hajinezhad
  given: Ahmad
da: '2023-09-28'
doi: 10.1002/ese3.1005
earlyaccessdate: NOV 2021
eissn: 2050-0505
files: []
journal: ENERGY SCIENCE \& ENGINEERING
keywords: carbon tax; employment; general equilibrium model; welfare
keywords-plus: ENERGY EFFICIENCY; POVERTY; POLICY; FUEL; INEQUALITY
language: English
month: JAN
number: '1'
number-of-cited-references: '38'
orcid-numbers: 'Zahedi, Rahim/0000-0001-6837-8729

  Moosavian, Seyed Farhan/0000-0002-9431-5518'
pages: 13-29
papis_id: 0f3f8ca44ac3eacac34b908a3b54727e
ref: Moosavian2022economicenvironmenta
times-cited: '19'
title: 'Economic, Environmental and Social Impact of Carbon Tax for Iran: A Computable
  General Equilibrium Analysis'
type: Article
unique-id: WOS:000714822000001
usage-count-last-180-days: '5'
usage-count-since-2013: '17'
volume: '10'
web-of-science-categories: Energy \& Fuels
year: '2022'