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Introduction of the Carbon Tax Based on the Imputed Price of Carbon for the Post Kyoto Protocol Scenario

This paper proposes introduction of a carbon tax based on the imputed price of carbon (ICT) for the post Kyoto Protocol period considering the global participation and economic equity. Although the first commitment period is coming, climate change measures have made little progress due to the institutional defects of the Kyoto Protocol. To remedy such defects, a carbon tax is a suitable method. ICT is compared with the internationally common carbon tax using an applied general equilibrium model from environmental and economic perspectives. It is proven that ICT is a more appropriate method for the post Kyoto Protocol, considering the environmental and economic aspects simultaneously.