ABSTRACT
People used a static, single period, multi-sectoral CGE model of the Thai economy to analyze macroeconomic and sectoral impacts of climate change mitigation. Li concentrates on ancillary benefits of a carbon tax; it does not present impacts of carbon tax on various macroeconomic and sectoral economic indicators, such as economic welfare, trade, sectoral value added. The model considers a representative household that follows a five-step hierarchical optimization process to maximize its utility. Another interesting finding of the study is that when the tax revenue is used for public consumption or recycled to finance cuts in the existing labor tax rate, the carbon tax would cause gross domestic product to increase. The data needed include a social accounting matrix (SAM) of Thailand and the values of the parameters. While the SAM is taken from Timilsina and Shrestha, the values of the parameters are taken from Timilsina and Shrestha.
