The Impacts of Economic and Environmental (Case Study CO2 and Tax in Iran)

Emissions tax is an environment protecting policies ineconomy context. this study also aims at investigatingeconomic and environmental impacts of emissions taxationlevied on co2 emitted from fuel and production process iniran. to get the objective a computable general equilibriumframework based on the iranian social accounting matrix of1999 was used. co2 is taxed based on world bank (2004) estimateddamage cost. the results show that tax policy impacton emission and macroeconomic variables depend on whetherenergy subsidies are reformed. co2 tax is more effective inemission reduction after energy subsidy reform while implementingit at the presence of energy subsidies does not inducesignificant effects.