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2. PHD Thesis / Tesis PHD
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Title:	Economic analysis of carbon dioxide emission abatement policies in Malaysia : a computable general-equilibrium approach
Authors:	Masoud Yahoo (P56956)
Supervisor:	Jamal Othman, Prof. Dr.
Keywords:	Carbon dioxide emission Environmental policy instruments Equilibrium models Universiti Kebangsaan Malaysia -- Dissertations Dissertations, Academic -- Malaysia
Issue Date:	2
Description:	In recent decades, global warming and its effects on climate change have become a major international issue of concern. The Malaysian government has set a target to reduce the nation��s CO2-e gas emissions to GDP intensity by 40% from 2005 GDP levels by 2020. Environmental policy instruments have been designed to assist the achievement of climate change mitigation targets. These instruments attempt to affect structural changes in production behaviors on intermediate and primary inputs use and their reallocation between economic activities and in altering the consumption patterns of final consumers. Economic or market based instruments are increasingly used world-wide to limit CO2-e emissions and are being deliberated in Malaysia. However, the lack of authoritative studies based on sound quantitative analysis on how policy instruments, particularly environmental taxes would operate through the Malaysian economy has generated strong resistance and doubts from various parties. This study evaluates the impact of such policy implementation for Malaysia taking into consideration the specific complexities of her labour force, unemployment, national development targets and other economic and social aspirations. This study specifically constructs a detailed single-country, multiple-sectors, and comparative static computable general equilibrium model of the Malaysian economy with special reference to energy and environment linkages. However, it differs from existing general equilibrium models in a number of ways. First, emissions are linked directly to the main energy source within the economic core of the model. Secondly, comparisons between the various economic instruments are made in a uniform framework and the results appraised through a common macroeconomic environment. Thirdly, the model includes the construction of a special module for the analysis of the use of greener energy inputs. Fourthly, different emission reduction measures are designed for the analysts to counteract any overestimation of the costs of mitigation. Finally, a detailed disaggregation of energy sectors in the extended model and database will estimate the impact and cost of emission reduction more precisely. The applied model and database are used to simulate the economy-wide, comparative static effects of alternative environmental policies, including a carbon tax scheme with and without compensating programs and command and control policy. The simulation results highlight the magnitude and direction of environmental, macroeconomic and sectoral-specific variables of interest which encompass sectoral outputs, prices, GDP growth, supply of primary and intermediate inputs, structural changes, and the utilization of greener energy inputs. Revenue neutrality assumptions show that an economic instrument such as a carbon tax is the optimum means of providing a double dividend if the revenue generated is utilized towards reducing household sales taxes. In general, simulation results show that relative to the percentage change in CO2 emission reductions, the negative macroeconomic impacts of such a tax and command-and-control policies would not be very large. The simulation results show that greener energies would replace fossil-fuels quite significantly in any introduction of a carbon tax that is also applied in revenue recycling. As an added bonus, the level of welfare enhancement increases in tandem with a decrease in carbon emissions. The general equilibrium quantification of alternative policy instruments on the direction and order of changes in the endogenous variables will shed light for facilitating objective decision-making by environmental and/or macro policy makers in Malaysia.,Ph.D.
Pages:	462
Publisher:	UKM, Bangi
Appears in Collections:	Faculty of Economy and Management / Fakulti Ekonomi dan Pengurusan

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