Reproducibility package for Firm’s Preferences For Emissions Reducing Measures And Willingness To Pay For Carbon Tax In Vietnam

Vietnam is committed to reducing its greenhouse gas (GHG) emissions by 15.8% by 2030 and meeting its net-zero emission target by 2050. The industrial sector, including the power sector, is the primary emitter and its active participation is necessary to achieve the targets. This study surveys Vietnamese firms to understand their preferences in reducing GHG emissions. The study finds that Vietnamese firms prefer to reduce their GHG emissions through improvements of energy efficiency, substitution of fossil fuels with non-fossil fuels and changing production processes. The ranking of preferences, however, differs across the size, type, ownership and geographical location of firms. Their willingness to reduce emissions is driven by anticipated future regulations, social image, and global trends. They consider the lack of finance to be the main barrier to investing in climate change mitigation measures. The study also finds that if a carbon tax were imposed at 100,000 local currency (around US$5) per ton of CO2, over 60% of firms would be willing to invest less than 5% of their annual revenue in GHG mitigation; only less than 10% of the firms are willing to allocate more than 10% their revenue for GHG mitigation. It also shows that larger firms and state-owned firms have a higher willingness to pay (WTP) for emission mitigation measures.