Simulation of Green Tax on Economic Growth in Iran: Application of Computable General Equilibrium (CGE) Approach

Expansion of energy consumption and trend of rising emissions of pollutants resulting from the combustion of energy carriers in the world has caused environmental crises be recognized as one of the most important challenges which governments in the twenty-first century are facing. That is why governments try to take various policies and programs in order to overcome on environmental problems such as air pollution. One of the most common types of policies that cause minimum inefficiency in the economy is obtaining the green taxes which is applied on the basis of cost. Accordingly, in this study, the effects of increase of green taxes on economic growth, based on the design of Computable General Equilibrium model for Iran and implementation of Social Accounting Matrix in 1380 in the form of eight scenarios were examined.The increasing rates of taxes from one to forty percent have been done in eight scenarios. the obtained results show that the increasing rate of green taxes as an indirect one increases the economical growth in all scenarios. also the positive effect of lower pollution leads in positive economic growth in all scenarios, too.