Proceedings of the 4th Borobudur International Symposium on Science and Technology 2022 (BIS-STE 2022)

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The Effects of Carbon Taxes on Firms’ Carbon Emission: Simulation Model in Indonesia

Authors
Andewi Rokhmawati1, *
1The Faculty of Economics and Business, Universitas Riau, Riau, Indonesia
*Corresponding author. Email: andewi.rokhmawati@lecturer.unri.ac.id
Corresponding Author
Andewi Rokhmawati
Available Online 9 November 2023.
DOI
10.2991/978-94-6463-284-2_63How to use a DOI?
Keywords
Allowance; Carbon pricing; Carbon emissions; Carbon tax; Fossil fuels
Abstract

This research examines the effect of taxes on carbon on firms’ carbon emissions. To examine the effect, this research used a manufacturing firm-level dataset from 2012-2019. The data were secondary data collected by Indonesian Statistics. The research did not include 2020 and 2021 because Indonesian Statistics did not survey those years because of the Covid 19 pandemic. It did not include the data in 2016 either due to the unavailability of data. The research data includes the types and numbers of energy consumed by the firms to calculate the firms’ carbon emission, investment, and value-added. By using the common effect approach, the study result indicates that increasing the marginal cost of carbon taxes increased firms’ carbon emissions. Thus, this result did not provide empirical evidence that the IDR 30.00 tariff of a carbon tax is an effective carbon pricing policy. This might be because the carbon tax tariff of IDR 30.00 per kilogram of CO2e is still low, so the tariff did not effectively push firms to consume fossil fuels more efficiently and adopt clean technology.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 4th Borobudur International Symposium on Science and Technology 2022 (BIS-STE 2022)
Series
Advances in Engineering Research
Publication Date
9 November 2023
ISBN
10.2991/978-94-6463-284-2_63
ISSN
2352-5401
DOI
10.2991/978-94-6463-284-2_63How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Andewi Rokhmawati
PY  - 2023
DA  - 2023/11/09
TI  - The Effects of Carbon Taxes on Firms’ Carbon Emission: Simulation Model in Indonesia
BT  - Proceedings of the 4th Borobudur International Symposium on Science and Technology 2022 (BIS-STE 2022)
PB  - Atlantis Press
SP  - 573
EP  - 581
SN  - 2352-5401
UR  - https://doi.org/10.2991/978-94-6463-284-2_63
DO  - 10.2991/978-94-6463-284-2_63
ID  - Rokhmawati2023
ER  -