The goal of this study is two fold: 1)To estimate economic burden, changes in premature mortality and morbidity, and their corresponding monetary values associated with introduction of carbon taxes and/or fuel taxes, such that the costs and benefits are compared for tax variations.
The methodology applied to the study is of integrated model of top-down and bottom-up regional model. For the study the region includes Seoul, Inchon, and Kyonggi, the pollutants are carbon, PM10, SO2, and NO2, the periods in concern is 2000-2030, and tax scenarios are US$ 21/TOC in 2010 the increase by $1 yearly while fuel tax rates gradually increase:
kerosene: annual 3% increase from 2004 to 2019(48%), thereafter 48%;
diesel: annual 5% increase from 2004 to 2019(80%), thereafter 80%;
Bunker-C: annual 0.5% increase from 2004 to 2019(7.5%),thereafter 7.5%;
LPG: annual 4% increase from 2004 to 2019(60%), thereafter 60%.
The costs are estimated employed by top-down, forward-looking dynamic computable general equilibrium model in order to analyze national economic burden of taxes implemented for the purpose of mitigating greenhouse gases and/or local air pollutants. The national level of economic costs is allocated to three regions according to gross regional domestic products(GRDP) exogenously given. The bottom-up impact pathway approach is utilized to calibrate environmental health benefits. The sequential modules for the part include taxes àemission àair pollutant concentration àhealth effects àmonetary values. Box-model approach is used