August 16, 2025Discover SustainabilityOpen Access

Carbon taxation and emission trading in Vietnam: insights from E-DSGE model

View Full Paper

Ask AI

Bookmark

Authors

Discussion

This analysis reveals carbon taxation impacts on economic performance and income equity in Vietnam, suggesting optimized redistribution strategies.

Using carbon revenues for labor tax reductions can enhance economic efficiency and employment, driving down CO2 emissions.
Aggregate CO2 emissions decrease by 19.8% under optimal revenue schemes, with real GDP contracting by only 0.95%.
The approach employs a novel E-DSGE modeling framework calibrated for 2010–2022, addressing Vietnam's environmental policies.
Significant income inequality may arise without targeted support for low-income households, emphasizing the need for careful policy design.

Minh et al. (2025) studied this question.

View Full Paper

Ask AI

Bookmark

This analysis reveals carbon taxation impacts on economic performance and income equity in Vietnam, suggesting optimized redistribution strategies.