Timilsina, Govinda R.2012-06-082012-06-082007-11https://hdl.handle.net/10986/7546This study examines the roles of revenue recycling schemes for the selection of alternative tax instruments (i.e., carbon-, sulphur-, energy- and output-tax) to reduce CO2 emissions to a specified level in Thailand. A static, single period, multi-sectoral computable general equilibrium (CGE) model of the Thai economy has been developed for this purpose. This study finds that the selection of a tax instrument to reduce CO2 emissions would be significantly influenced by the scheme to recycle the tax revenue to the economy. If the tax revenue is recycled to finance cuts in the existing labour or indirect tax rates, carbon tax would be more efficient than the sulphur-, energy- and output-taxes to reduce CO2 emissions. On the other hand, if the tax revenue is recycled to households through a lump-sum transfer, sulphur and carbon taxes would be more efficient than energy and output taxes. The ranking between the sulphur and carbon taxes under the lump sum transfer scheme depends on substitution possibility of fossil fuels. Sulphur tax is found superior over carbon tax at the higher substitution possibility between fossil fuels; the reverse is found true at the lower substitution possibility. In all schemes of revenue recycling considered, the output tax is found to be the most costly (i.e., in welfare terms) despite the fact that it generates two to three times higher revenue than the other tax instruments.CC BY 3.0 IGOACCOUNTINGAIRAIR POLLUTIONAPPROACHATMOSPHERIC EMISSIONSAVERAGE COSTSBALANCEBUDGET CONSTRAINTCAPITAL FLOWSCAPITAL FORMATIONCAPITAL GOODSCAPITAL MOBILITYCAPITAL STOCKCAPITAL TAXCARBONCARBON ABATEMENTCARBON CONTENTCARBON DIOXIDECARBON EMISSIONCARBON EMISSIONSCARBON INTENSITYCARBON TAXCARBON TAXESCASH TRANSFERSCDCLEAN ENERGYCLIMATE CHANGECLIMATE PROTECTIONCOALCOAL CONSUMPTIONCOAL OILCOAL PRICECOMMERCIAL TRANSPORTCONSTANT RETURNS TO SCALECONSUMPTION OF FUELCOST MINIMIZATIONCRUDE OILDEMAND FOR ELECTRICITYDEVELOPING COUNTRIESDEVELOPING COUNTRYDIESELDISPOSABLE INCOMEDISTORTIONARY TAXESDOUBLE DIVIDENDECONOMIC WELFAREELASTICITYELASTICITY VALUESELECTRICITYELECTRICITY GENERATIONEMISSIONEMISSION ABATEMENTEMISSION REDUCTIONEMISSION REDUCTIONSEMISSION TRADINGEMISSIONSENERGY CONSUMPTIONENERGY DEVELOPMENTENERGY SUPPLYENERGY TAXENERGY TAXESENVIRONMENTALENVIRONMENTAL ECONOMICSENVIRONMENTAL IMPACTSENVIRONMENTAL POLICYENVIRONMENTAL PROTECTIONENVIRONMENTAL TAXENVIRONMENTAL TAXATIONENVIRONMENTAL TAXESEQUILIBRIUMEQUILIBRIUM ANALYSESEQUIVALENT VARIATIONEXCHANGE RATEEXTERNAL FINANCEFIXED CAPITALFOSSILFOSSIL FUELFOSSIL FUELSFUELFUEL CONSUMPTIONFUEL OILFUEL PRICEGAS TURBINEGENERAL EQUILIBRIUM MODELGLOBAL CLIMATE CHANGEGOVERNMENT REVENUEGOVERNMENT REVENUESGOVERNMENT SAVINGGOVERNMENT SAVINGSGROSS DOMESTIC PRODUCTGROSS OUTPUTHEATHEAT VALUEHIGH SULPHUR CONTENTHOUSEHOLD INCOMEHOUSEHOLD SAVINGHOUSEHOLD SAVINGSIMPORTSINCOMEINCOME TAXINCOME TAXESINSTRUMENTINTEREST RATEINTERNAL COMBUSTIONINTERNAL COMBUSTION ENGINEINTERNATIONAL BANKINVENTORYLEISURELEVIESLEVYLOCAL AIR POLLUTIONMETALSMOBILITYNATIONAL INCOMENATURAL GASNATURAL GAS DEMANDNITROGENOILOIL GAS COALOPEN ECONOMYPERSONAL INCOMEPERSONAL INCOME TAXESPETROLEUMPETROLEUM GASPETROLEUM PRODUCTSPOLLUTANTSPOLLUTIONPOLLUTION CHARGESPOWERPOWER GENERATIONPOWER PLANTSPOWER SYSTEMPRICE ELASTICITYPRICE ELASTICITY OF DEMANDPRICE OF COALPRIMARY SOURCESPRODUCERSPRODUCTION FUNCTIONSPUBLIC GOODSRATE OF RETURNRETURNSREVENUE RECYCLINGSALES TAXSAVINGSSHARE OF INVESTMENTSTEAM TURBINESUBSIDIZATIONSUBSTITUTION ELASTICITIESSULFURSULFUR TAXSULFUR TAXESSULPHUR DIOXIDESULPHUR EMISSIONSTAX BASETAX CREDITSTAX POLICYTAX RATETAX RATESTAX REVENUETAX REVENUESTIRESTRADE BALANCETRANSPORT SERVICETRANSPORT SERVICESTRUEUTILITIESWAGESWELFARE EFFECTSWorld Bank10.1596/1813-9450-4388