Effect of Carbon Tax Policies in Logistics Systems (Study: Pulp and Paper Industries)

Subject Areas : Econometrics and Financial Applications of other Theories (Stochastic Processes, (Stochastic) Partial Differential Equations, Dynamical Systems)

Hadi Najafian ¹ , Habibollah Javanmard ² , Ahmad Sarlak ³

1 - Department of Industrial Management, Arak Branch, Islamic Azad University ,Arak ,Iran
2 - Department of Industrial Management, Arak Branch, Islamic Azad University, Arak ,Iran
3 - Department of Economic, Arak Branch, Islamic Azad University, Arak, Iran

Received: 2024-06-03 Accepted : 2024-08-12 Published : 2024-10-29

Keywords: Carbon tax, Tax Policy, Logistics, Simulation ,

Abstract :

Two policies of carbon tax are considered by many countries for reduce carbon emissions. First policy emphasized on tax and second policy notice subsidy for carbon emission control. The results show that according to conditions, two policies can effective on reducing carbon emissions and technology development. A carbon tax Policy is needed to reduce carbon emissions in logistics systems. The purpose of this paper is to present effect of carbon tax policies for logistics in Iran pulp and paper industry. The research method is descriptive and data collection is survey, Samples consists two groups. The first group are experts for proposing possible Policy and deter-mining evaluation indices and selecting the appropriate Policy. The second group are managers in pulp and paper company for choose an appropriate Policy. Effect of factors on carbon tax was determined by experts’ interviews and fuzzy mean. Two suitable policies that covers the fossil fuels, were selected for simulation by VENSIM software. We considered 10 years for test and 10 years for simulation. Results showed both policies affect pollution reduction, reducing the fossil fuels consumption, reduction of emissions and increase innovation in the logistics system. The second policy that is carrying out carbon tax is more effective than the first policy which paying subsidies to reduce emissions.

References:

[1] Cheng, Y., Sinha, A., Ghosh, V., Sengupta, T., Luo, H., Carbon tax and energy innovation at crossroads of carbon neutrality: Designing a sustainable decarbonization policy, Journal of Environmental Manage-ment, 2021; 294, doi: 10.1016/j.jenvman.2021.112957.
[2] Rausch. S., Reilly, J., Carbon taxes, Deficits, and Energy Policy Interactions, National Tax Journal, 2015; 68(1): 157-178. doi:10.17310/ntj.2015.1.07.
[3] WorldBank., State and Trends of Carbon Pricing (Type). World Bank, Washington DC. 2020. doi: 10.1596/978-1-4648-1586-7.
[4] Konstantara, I., Skouri, K., Benkherouf, L., Optimizing inventory decisions for a closed–loop supply chain model under a carbon tax regulatory mechanism, Int. J. Production Economics, 2021; 239.
doi:10.1016/j.ijpe.2021.108185.
[5] Rathore, M., Jakhar, S.K., Differential carbon tax policy in aviation: One stone that kills two birds? Journal of Cleaner Production, 2021; 296, 126479, doi: 10.1016/j.jclepro.2021.126479.
[6] Wang, M., Fang, X., Zhang, K., Exploring a pathway to optimize the carbon tax policy in terms of the economy, the environment and health: A scenario-based system dynamics approach, journal of Heliyon, 2024; 10, doi: 10.1016/j.heliyon. 2024.e31093.
[7] Sun, Y., Mao, X., Yin, X., Liu, G., Zhang, J., Zhao, Y., Optimizing carbon tax rates and revenue recy-cling schemes: Model development, and a case study for the Bohai Bay area, China, Journal of Cleaner Production, 2021; 296. doi: 10.1016/j.jclepro.2021.126519.
[8] Bragagni, M., Xhaferraj, L., Mazza, I., Concetti, G., Sustainable development and the need to reform the carbon tax. Journal of Public Affairs, 2022; (22) 1, doi: 10.1002/pa.2787.
[9] Zhang, J., Zhang, Y., Exploring the impacts of carbon tax on tourism‐related energy consumption in China. Sustainable development, 2019; 27(3), 296-303. doi: 10.1002/sd.1900.
[10] Jahangard E, Banooei A A, Faridzad A, Barkhordari S, Amadeh H, Doudabi Nezhad A. The Double Dividend Hypothesis for Iran Economy: Modeling Carbon Taxes with a CGE Model. Quarterly Journal of Energy Policy and Planning Research 2019; 5 (3) :7-31, URL: http://epprjournal.ir/article-1-701-en.html., (In Persian).
[11] Atherton, J., Xie, W., Aditya, L.K., Zhou, X., Karmakar, G.K., Akroyd, J., Mosbach, S., Lim, M.Q., Kraft, M., How does a carbon tax affect Britain’s power generation composition? Applied Energy, 2021; 298. doi: org/10.1016/j.apenergy.2021.117117.
[12] Adam, S., Delestre, I., Levell, P., Miller, H., Tax policies to reduce carbon emissions. Fiscal Studies, 2022; 43(3), 235-263. doi: 10.1111/1475-5890.12308.
[13] Ling, T., Jiaqian, W., Lean, Y., Qin. B., Carbon emissions trading scheme exploration in China: A mul-ti-agent-based model." Journal Energy Policy, 2015; 81, 152–169. doi: 10.1016/j.enpol.2015.02.032.
[14]. Mideksa T.K., Pricing for a Cooler Planet: An Empirical Analysis of the Effect of Taxing Carbon, CESifo Working Paper, 2021; No. 9172. doi: 10.2139/ssrn.3885415.
[15] Wiskich A.A., Carbon tax versus clean subsidies: Optimal and suboptimal policies for the clean tran-sition, journal of Energy Economics, 2024; 132. doi: 10.1016/j.eneco.2024.107410.
[16] Povitkina, M., Jagers, S., Matti, S., Martinsson, J., Why are carbon taxes unfair: Disentangling public perceptions of fairness, Global Environmental Change, 2021; 70, 529-554. doi: 10.2139/ssrn.3789927.
[17] Xu, X., Chen, Q., Che, Y., The impacts on CO2 emission reduction and haze by coal resource tax re-form based on dynamic CGE model. Journal of Resources policy, 2018; 58, 268–276. doi: 10.1016/j.resourpol.2018.05.015.
[18] Tan, R., Lin, B., The influence of carbon tax on the ecological efficiency of China’s energy intensive industries—a inter-fuel and inter-factor substitution perspective. Journal of Environ. Management, 2020; 261, 110252. doi: 10.1016/j.jenvman.2020.110252.
[19] Kong Chyong, C., Guo, B., Newbery, D, The impact of a carbon tax on the CO2 emissions reduction. Journal of Wind Energy. 2020; 41. doi: 10.5547/01956574.41.1.
[20] Andersson, J., Cars, carbon taxes and CO 2 emissions (Grantham Research Institute on Climate Change and the Environment Working Paper, London, England: London School of Economics and Politi-cal Science, 2015; 21, 234-254. doi: 10.1080/14693062.2018.1492897.
[21] Schafhausen, F., Climate policy of Japan and Germany in comparison. 21st reform group meeting. Prospects of climate change policy and green finance - low carbon strategies, energy plans and implemen-tation of the Paris agreement. Salzburg, Austria, 2017; 34. doi: 10.1016/j.esg.2023.100187.
[22] Yunfei, I. Chenmu Du, Z., Xiang, J., Tian Wu, T., Tax policy or carbon emission quota: A theory on traditional ICEV transportation regulation, Journal of Energy, 2024; 2., doi: 10.1016/j.energy.2023.129848.
[23] Khastar M., Aslani A., Bekhrad, K., Naaranoja, M., Kowsari, H, Resiliency Analysis of Energy De-mand System in Finland, Present Environment and Sustainable Development, 2018; 12(2). doi: 10.2478/pesd-2018-0046.
[24] Bosquet, B., Environmental tax reform: does it work? A survey of the empirical evidence. J of Ecol. Econ, 2000;34 (1), 19–32. doi: 10.1016/S0921-8009(00) 00173-7.
[25] Wier, M., Birr-Pedersen, K., Jacobsen, H.K., Klok, J., Are CO2 taxes regressive? Evidence from the Danish experiences. J of Ecol. Econ. 2005;52 (2), 239–251. doi: 10.1016/j.ecolecon.2004.08.005.
[26] Andersen, J.J., Greaker, M., Emission trading with fiscal externalities: the case for a common carbon tax for the non-ETS emissions in the EU. Journal of Environ. Resour. Econ. 2018; 7, (3), 803–823. doi: 10.1007/s10640-017-0184-x.
[27] Lin, B., Li, X., The effect of carbon tax on per capita CO2 emissions. Energy Policy, 2011; 39 (9), 5137–5146. doi: 10.1016/j.enpol.2011.05.050.
[28] Gemechu, E.D., Butnar, I., Llop, M, Castells, F., Economic and environmental effects of CO2 taxation: an input-output analysis for Spain. Journal of Environ. Plan. Manag, 2014; 57 (5), 751–768. doi: 10.1080/09640568.2013.767782.
[29] Pereira, A.M., Pereira, R.M., Environmental fiscal reform and fiscal consolidation: the quest for the third dividend in Portugal. Public Financ. Rev. 2014; 42 (2). doi: 10.1177/1091142113485803.
[30] Solaymani, S, Carbon and energy taxes in a small and open country. Glob.J. Environ. Sci. Manag, 2017; 3(1), 51–62. doi: 10.22034/gjesm.2017. 03.01.006.
[31] Van Heerden, J., Blignaut, J., Bohlmann, H., Cartwright, A., Diederichs, N., Mander, M., The economic and environmental effects of a carbon tax in South Africa: a dynamic CGE modelling approach. S. Afr. J. Econ. Manag. Sci, 2016; 19 (5), 714–732. doi: 10.4102/sajems. v19i5.1586.
[32] Larsen, J., Mohan, S., Herndon, W, Energy and Environmental Implications of a Carbon Tax in the United States. Rhodium Group for Columbia SIPA Center on Global Energy Policy, United States, 2018; doi: 10.1080/14693062.2022.2061405.
[33] Barragan-Beaud, C., Pizarro-Alonso, A., Xylia, M., Syri, S., Silveira, S., Carbon tax or emissions trad-ing? An analysis of economic and political feasibility of policy mechanisms for greenhouse gas emissions reduction in the Mexican power sector. Energy Policy, 2018;122, 287–299. doi: 10.1016/j.enpol.2018.07.010.
[34] Ratanakuakangwan, S., Morita, H., Energy efficiency of power plants meeting multiple requirements and comparative study of different carbon tax scenarios in Thailand, Cleaner Engineering and Technolo-gy, 2021; 2 100073. doi: 10.1016/j.clet.2021.100073.
[35] Hamid, E., Amiri, H., Ahmadi, M.R., Salehi, A.K., Presenting a Model of Tax Non-Compliance in Iran Based on the Analytical Network Process, Advances in Mathematical Finance and Applications., 2023; 8(2), P. 385-418. doi: 10.22034/AMFA.2022.1956900.1738.
[36] Paidarmanesh, N., Mehrazeen, A., Abbaszadeh, MR.R., Massih Abadi, A., Firm Value, Tax Evasion, Tax Planning Opportunity and Financial Crisis of Firms, Advances in Mathematical Finance and Applica-tions., 2024; 9(2), P.513-528. doi: 10.22034/amfa.2023.1967020.1795.
[37] Arimura, T.H., Abe, T., The impact of the Tokyo emissions trading scheme on office buildings: what factor contributed to the emission reduction? Environmental Economics and Policy Studies, 2020; 23(1). doi: 10.1007/s10018-020-00271-w.
[38] Kojima, S., Asakawa, K., Expectations for carbon pricing in Japan in the global climate policy con-text. In: Arimura, T.H., Matsumoto, S. (Eds.), Carbon Pricing in Japan. Economics, Law, and Institutions in Asia Pacific. Springer, Singapore, 2021. doi: 10.1007/978-981-15-6964-7_1. Retrieved from.
[39] Gokhale, H., Japan's carbon tax policy: Limitations and policy suggestions., Current Research in En-vironmental Sustainability, 2021; 3. doi: 10.1016/j.crsust.2021.100082.
[40] Lin, B., Jia, Z., The energy, environmental and economic impacts of Carbon tax rate and taxation in-dustry: a CGE based study in China. Journal of Energy, 2018;159, 558–568. doi: 10.1016/j.energy.2018.06.167.
[41] McFarland, J., Fawcett, A.A., Morris, A.C., Reilly, J.M., Wilconxen P.J., Overview of the EMF 32 Study on U.S. Carbon Tax Scenarios, Climate Change Economics, 2018; 9 (1):1‐37.
doi: 10.1142/ S201000781840002X.
[42] Liao, D., Tan, B., An evolutionary game analysis of new energy vehicles promotion considering car-bon tax in post-subsidy era, Journal of Energy, 2023; 264. doi: 10.1016/j.energy.2022.126156.
[43] Najafian, H., Javanmard, H., Sarlak, A, Carbon Tax Plan for Iran's Automotive Industry, Journal of business management, 2023;1069064, (In Persian).
[44] Ghadirinejad, G., Rajab Beigi, M., Gholami, A.KH, Scenario Development of Talent Management System in Iran's National Oil Products Distribution Company, Journal of System Management, 2023; 9(4), 221-237. doi: 10.30495/JSM.2023.1984177.1812.
[45] Bashiri Manesh, N., Arefmanesh, Z., The Role of Effective Variables on The Relationship Between Tax Avoidance and Investment Efficiency, Advances in Mathematical Finance and Applications., 2023; 8(3), 829-847. doi: 10.22034/AMFA.2023.1968722.1806.