Abstract

MUNOZ-ZAMPONI, T. Belén  and  MARDONES-POBLETE, C. Alejandro. Simulation of a CO ₂ e tax to mitigate impacts from Chilean agriculture and livestock sector on climate change. Agrociencia [online]. 2016, vol.50, n.3, pp.271-285. ISSN 2521-9766.

In Chile, the agriculture and livestock sector contributes 40.6 % of total CO2e emissions. The aim of this study was to use an environmental extension of the Leontief price model to simulate the economic and environmental effects that the application of a tax would have on CO2e emissions from this sector. We used the methodology of the input-output table and the pricing model of Leontief to characterize the current price structure of the sectors of the Chilean economy; then we introduced several simulations rates of environmental tax on CO2e emissions in the agriculture and livestock sector, which affects the production costs of this and other sectors, generating impact on prices, consumer price index, private welfare, tax collection and emission reductions. The results showed that the application of environmental taxes in the agriculture and livestock sector does not significantly reduce emissions in Chile. In countries that have implemented this tax, a low tax of US$1 per Mg of CO2e reduces emissions by 0.2 %, an average tax of US$30 per Mg of CO2e reduces emissions by 4.0 %, a high tax of US$130 per Mg of CO2e only low emissions by 12.2 %. In the latter more restrictive scenario, the price of agriculture and livestock products would rise by 66.1 %, as well as the prices of forestry, food processing, aquaculture, wood industry, among other sectors, which will eventually result in an increase of 4.7 % of the consumer price index.

Keywords : Leontief price model; environmental taxes; CO_2e emissions.

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