Environmental Taxation in China and Asia-Pacific
Show Less

Environmental Taxation in China and Asia-Pacific

Achieving Environmental Sustainability through Fiscal Policy

Edited by Larry Kreiser, Julsuchada Sirisom, Hope Ashiabor and Janet E. Milne

Environmental Taxation in China and Asia-Pacific contains an integrated set of detailed chapters providing insights and analysis on how fiscal policy can be used to achieve environmental sustainability. Highly topical chapters include energy tax policy in China, environmental fiscal reform, carbon tax policy in northeast Asia and environmental taxation strategies in China, Asia and Australia, as well as many other relevant topics.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 4: Assessment of Fiscal Intervention Measures in China: Perspectives from Environmental Macroeconomics

Seck L. Tan and Dodo J. Thampapillai


JOBNAME: Kreiser IX PAGE: 1 SESS: 31 OUTPUT: Wed Aug 24 14:42:29 2011 4. Assessment of fiscal intervention measures in China: perspectives from environmental macroeconomics Seck L. Tan and Dodo J. Thampapillai INTRODUCTION Macroeconomic policy analysis is invariably conducted without reference to environmental capital (KN) and its depreciation (DKN). Hence policy outcomes from such analysis are inevitably unsustainable. Following the literature in environmental economics (Daly, 1991; Thampapillai, 2006), we define KN as an aggregate measure of the natural endowments at the disposal of an economy – analogous to the concept of capital stock in standard macroeconomics. In this chapter we demonstrate a simple macroeconomic framework into which DKN is internalized. The level of national income (Y) that ensues as a result of such internalization is more sustainable than that elicited from standard macroeconomic policy analysis which excludes DKN. The internalization also permits the basis for discerning the level of extra taxation that is required in the standard analysis to achieve the same income outcome as that displayed in the internalized framework. An estimate of this added tax is an indicator of the extent of the divergence between the unsustainable and quasi-sustainable time paths. As indicated below, the levels of extra taxation required are exceedingly high. We consider a set of nominal levels of extra taxation (2 per cent and 5 per cent) to meet environmental investment. Taxes, when not injected back into the economy properly, can be regressive. Hence the additional taxes need to be reinvested within the...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.