Applying Tax Rate of 33,33% on Primary Energy in Indonesia

Vitriyani Tri Purwaningsih and Tri Widodo ()

MPRA Paper from University Library of Munich, Germany

Abstract: High fuel consumption has a negative impact not only on the environment, but also can have wider impact on the country's economic conditions. Thus, steps need to be taken regarding the use of fuel in order to reduce the negative impact that results. The aims of this study is to analyze the impact that occurred on the industry and the Indonesian economy when a tax of 33,33% was determined on the use of primary energy, that is coal and petroleum products, through three simulations. By using a model from GTAP-E, the region is aggregated into 7 regions and the industrial sector will be aggregated into 11 industries. The result shows that simulation C has a significant impact on the industry and the Indonesian economy. In addition, this simulation is also able to reduce carbon dioxide gas emissions which derive from coal and petroleum.

Keywords: Tax; Petroleum; Coal; GTAP-E (search for similar items in EconPapers)
JEL-codes: Q43 Q48 (search for similar items in EconPapers)
Date: 2019-01-07
New Economics Papers: this item is included in nep-cmp, nep-ene and nep-sea
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:91315

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