An Assessment of Japanese Carbon Tax Reform Using the E3MG Econometric Model

Table 2

Summary of scenarios.

	Carbon tax rates	Revenue recycling
S1	FY2012 reform	None
S2a	To reach 25% GHG reduction	None
S2b	To reach 25% GHG reduction	95% of revenues used to reduce income taxes, 5% used for investment in energy efficiency
S2c	To reach 25% GHG reduction	75% of revenues used to reduce income taxes, 25% used to reduce employers’ social security contributions