Simulation and prediction of the green tax effect on energy consumption and intensity in Iran using a genetic algorithm

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Abstract:

  Taxation as one of the safest ways of government financing has always been one of the financial tools of the government along with public sector expenses to achieve government objectives, and since the world's largest environmental damage is due to energy consumption, imposing environmental taxes on energy consumption can reduce the amount of environmental damage. Therefore, considering the importance of energy consumption in economic growth and environmental quality in Iran, the impact of green taxation as an environmental policy on energy consumption and intensity has been studied. The model for this research is evaluated and simulated using Genetic Algorithm for Iran's economy. Different aspects of green tax effects on energy consumption and intensity have been analyzed to study all different aspects of the issue. The simulation results from the genetic algorithm showed that increasing green taxes reduces energy consumption and therefore reduces production. Also, if the ratio of energy consumption to production is defined as the intensity of energy, as a result, increase in green taxes leads to a decrease in energy intensity. Therefore, the results indicate that green taxes will reduce energy consumption and intensity in Iran.

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Journal title

volume 27  issue 42

pages  103- 125

publication date 2019-09

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