Journal of Tax Research

In this article, we explore the welfare and environmental impacts of unbalance tax on carbon for different areas in Iran using a regional dynamic general equilibrium model. For this purpose, initially the willingness of each province to pay in order to avoid the harmful impacts of pollution has been calculated in different provinces and based on that, these provinces have been classified into eight regions. Then we have defined three different policy scenarios and compared the results of each. The three scenarios include the base scenario (without taxes and government intervention), balance carbon tax and unbalance carbon taxes for different regions. The effects of different policies are investigated in 35 periods of 10 years (1730-1390). According to results of study, internalizing the costs of environmental pollution from carbon taxes has positive environmental and welfare impacts. It should be noted that the welfare effects of balance carbon tax policy, is more unbalance. While the effects of environmental factors on balance carbon taxes is more than unbalance tax policy.