Document Type : Article-Based Dissertations


1 Shahid Bahonar University of Kerman, Iran

2 Department of Agricultural Economics, Faculty of Agriculture, Shahid Bahonar University of Kerman, Kerman, Iran

3 Faculty of Agriculture Department of Agricultural Economics Shahid Bahonar University of Kerman, Iran

4 Associate Professor of Agricultural Economics, Shahid Bahonar University of Kerman


In recent decades, the release of more pollutants from energy consumption has had more devastating effects on the environment. Carbon taxation is one of the policies known to reduce carbon dioxide emissions. In this regard, the effect of carbon tax on production and employment of the industrial sector has been investigated using Input-Output model. According to the acceptance of the Paris Agreement, the effect of both fuel tax and carbon tax model on reducing fuel consumption and carbon emissions was investigated, in this study. The statistical base of the research includes an updated output data table based on the latest information of 2018 and statistics and information of the Ministry of Energy. The results showed that in the case of carbon tax, the greatest reduction in production and employment in activities (iron and steel, copper and aluminum, other metals), (chemicals and pharmaceuticals) and the least reduction in production and employment can be observed in activities (leather and shoes), (furniture, other products and repair and installation of machinery) and (production of electrical equipment). Also, with the imposition of fuel taxes, there is the highest price increase in the activity of refineries and non-refineries, and the lowest increase in the price level in the activity of clothing production. Finally, implementing fuel tax to reduce fuel consumption and carbon emissions is more efficient than carbon tax on petrol, kerosene, gasoline and furnace oil and gas. Carbon tax reduces energy consumption in activities, which will lead to the use of less polluting fuels by motivating innovation in production technology. Also, the carbon tax can provide the use of clean energy for the industrial sector in the presence of government facilities.


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