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

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.