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International Journal of Green Energy, 5: 241–254, 2008
Copyright ó Taylor & Francis Group, LLC
ISSN: 1543-5075 print / 1543-5083 online
DOI: 10.1080/15435070802229134
INTRODUCTION OF THE CARBON TAX BASED ON THE
IMPUTED PRICE OF CARBON FOR THE POST KYOTO
PROTOCOL SCENARIO
Ken’ichi Matsumoto
School of Policy Studies, Kwansei Gakuin University/JSPS Research Fellow,
Hyogo, Japan
This paper proposes introduction of a carbon tax based on the imputed price of carbon
(ICT) for the post Kyoto Protocol period considering the global participation and economic
equity. Although the first commitment period is coming, climate change measures have
made little progress due to the institutional defects of the Kyoto Protocol. To remedy such
defects, a carbon tax is a suitable method. ICT is compared with the internationally
common carbon tax using an applied general equilibrium model from environmental and
economic perspectives. It is proven that ICT is a more appropriate method for the post
Kyoto Protocol, considering the environmental and economic aspects simultaneously.
Keywords: International climate change policy; Post Kyoto Protocol; Imputed price of
carbon; Carbon tax; Economic equity
INTRODUCTION
Although the first commitment period of the Kyoto Protocol (2008–2012) is
coming, climate change measures have made little progress globally and achievement
of the quantitative goals of the Kyoto Protocol are still far for most of the Annex B
countries ratifying the Kyoto Protocol. In addition, although it is indispensable to estab-
lish international climate change policies for the post Kyoto Protocol period as soon as
possible to abate greenhouse gas (GHG) emissions and stabilize the climate, the related
discussions have not been advanced, yet. Therefore, the policies for the post Kyoto
Protocol period must be developed immediately to maintain the international efforts
against climate change.
There have been a number of studies and proposals related to the post Kyoto
Protocol scen
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