The Investigation of the Green Tax Effects on Employment in the Iran's Economy: A CGE Approach

The increased Energy consumption and pollutants emission caused that the environmental crisis be recognized as one of the most important challenges at the twenty-first century. Therefore, governments strived to overcome environmental problems by different policies and programs. One of the most common types of these policies is the green tax. These taxes are applied on the basis of cost and cause lower inefficiency in the Iran's Economy. Accordingly, this study tries to survey the green tax effects on the level of employment in the Iran's economic sectors. These investigations are done by the computable general equilibrium (CGE) model and the social accounting matrix (SAM) in the 2006 year. The results indicate that this policy sharply has fallen employment. Also, this criterion is highly influenced in case of sudden shocks and more than 15% and affected less with the gradual shocks less than 15%.