Distributional impact of carbon taxation on household energy consumtion in Thailand

dc.contributor.advisorAnan Wattanakuljarus
dc.contributor.authorSupawan Saelim
dc.date.accessioned2023-05-22T07:10:28Z
dc.date.available2023-05-22T07:10:28Z
dc.date.issued2018
dc.date.issuedBE2561th
dc.descriptionThesis (Ph.D. (Economics))--National Institute of Development Administration, 2018th
dc.description.abstractDistributional impact of a carbon tax on household demand can be relevant in terms of securing public acceptance of a carbon tax and clarifying the implications for policy design. Despite the growing literature about the impact of a carbon tax on the economy and environment, in-depth studies of distributional impact on the welfare of households are relatively scarce in Thailand. Although the distributional impact on households is only a part of the carbon tax story, it is very important for policy analysis, both in terms of securing public acceptance and policy design. Such policy design includes appropriate revenue-recycling options to reduce adverse effects on lowincome households and social objectives such as income inequality and poverty incidence. This study aims to estimate the distributional effects on households from changes in energy prices induced by a carbon tax, and explore the impact of the policy on social development indicators such as income inequality and poverty incidence in Thailand. The study simulates carbon tax scenarios and estimates distributional effects of the tax on household welfare, income inequality, and poverty rates based on household consumption. The study employs a microsimulation model incorporating the economy-wide effects of the tax on prices (through an input-output model) and consumers’ behavioral responses to changes in prices (through demand system estimations). The methods applied in this study include household energy demand estimation using the Quadratic Almost Ideal Demand system (QUAIDS) model to understand energy consumption behavior. In addition, the study also empirically examines the relationship between per capita welfare losses and a range of socioeconomic factors using multivariate regression analysis. The study utilizes monthly cross-sectional data of the national Household Socio-economic Survey (SES) for the years 2009, 2011 and 2013, and monthly consumer price indices for demand system estimation. The demand estimation results indicate that the pricing policy in the energy sector (e.g. through taxation) is likely to be ineffective in reducing energy consumption in the residential sector as the energy demand is inelastic. However, households are more responsive to reducing their consumption of transport fuels than electricity consumption when prices change. The results of the study also have useful implications for predicting behavioral responses and the welfare impact on households from changes in energy prices induced by other fuel taxes and energy-related policies aimed to sustainably incentivize the use of cleaner energy in the long run. In addition, socioeconomic factors, such as geographic region, labor market status, household structure and education, are significantly associated with individual welfare losses across energy and non-energy consumption types even after controlling for income. The results of a carbon tax simulation indicate that a carbon tax is progressive in Thailand under revenue-recycling scenarios of expanding social transfer programs. When carbon tax revenues are recycled through elderly pensions, the carbon tax could reduce the poverty rate and improve the welfare of households in the lowest quintile. The results imply that the distributional impacts of environmental taxes could result in favorable outcomes for income inequality and poverty reduction in developing countries. The study concludes that the concerns about the negative impact of environmental taxes on social objectives such as income inequality and poverty incidence in Thailand tend to be minimal, and less than what one might expect based on empirical results from developed countries. Lump-sum transfers of only a partial amount of carbon tax revenues to households can offset the negative effects on income inequality and poor households.th
dc.format.extent141 leavesth
dc.format.mimetypeapplication/pdfth
dc.identifier.doi10.14457/NIDA.the.2018.157
dc.identifier.otherb205842th
dc.identifier.urihttps://repository.nida.ac.th/handle/662723737/6464
dc.language.isoength
dc.publisherNational Institute of Development Administrationth
dc.rightsผลงานนี้เผยแพร่ภายใต้ สัญญาอนุญาตครีเอทีฟคอมมอนส์แบบ แสดงที่มา-ไม่ใช้เพื่อการค้า-ไม่ดัดแปลง 4.0 (CC BY-NC-ND 4.0)th
dc.subject.otherCarbon taxesth
dc.titleDistributional impact of carbon taxation on household energy consumtion in Thailandth
dc.typetext--thesis--doctoral thesis
mods.genreDissertation
mods.physicalLocationNational Institute of Development Administration. Library and Information Centerth
thesis.degree.departmentSchool of Development Economicsth
thesis.degree.disciplineEconomicsth
thesis.degree.grantorNational Institute of Development Administrationth
thesis.degree.levelDoctoralth
thesis.degree.nameDoctor of Philosophyth
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