A comparative static analysis of carbon tax policy and a 'Smart City-JB', Johor Bahru, Malaysia

Abstract

Malaysia at the United Nations Climate Change Conference in 2009 during the 15th Conference of Parties (COP15) announced the intention of voluntary reduction up to 40% in terms of emission intensity of GDP by the year 2020 compared to 2005 levels. However, on the other hand, Malaysia aims to attain a developed nation status by achieving a self-sufficient industrialized nation under the vision 2020. As a result, the complex and diverse relation between the economic development and the CO2 emissions reduction by 2020 has put Malaysia in a phenomenon where searching for better solution is becoming an important concern. Taking into account the idea 'think globally, act locally', with an emphasis to introduce a Smart City-JB, by building a computable general equilibrium (CGE) model, in this study, we aim to investigate the economic impact of usefulness of carbon tax on the manufacturing industries for promotion of a Smart City" Smart City-JB" in Johor Bahru City, Malaysia is. The projected model even can be applied to other places in Malaysia which will significantly impact in achieving the economic development and CO2 emissions reduction visions by 2020.