A CGE Analysis of the Impacts of a Carbon Tax on Provincial Economy in China

Zhang, Xingping; Guo, Zhen; Zheng, Yuhua; Zhu, Jinchen; Yang, Jian

doi:10.1080/1540496x.2016.1152801

Cited by 48 publications

(17 citation statements)

References 14 publications

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“…Similarly, the relationship between CO 2 emissions and the three measures of energy tax (epx, erx, eyx) is negative and statistically significant where a 1% increase in energy tax decreases CO 2 emissions between 0.112 and 0.140%. Our evidence is in line with Lu et al (2010); Guo et al (2014); Xu and Long (2014); Yang et al (2014); Zhang et al (2016) who found that environmental taxes can reduce carbon emissions. Our evidence is also in line with Hashmiand and Alam (2019) who found that a 1% increase in environmental tax revenue per capita reduces CO 2 emissions by 0.033% in OECD countries.…”

Section: Panel Long-run Estimatessupporting

confidence: 91%

See 1 more Smart Citation

Do environmental taxes and environmental stringency policies reduce CO2 emissions? Evidence from 7 emerging economies

Wolde‐Rufael¹,

Mulat-Weldemeskel

2021

Environ Sci Pollut Res

124

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Section: Panel Long-run Estimatessupporting

confidence: 91%

“…In contrast to the above, Hao et al (2018) and Zhang et al (2016) found that environmental regulations were not effective in reducing pollution in China. Equally, Li (2019) also found that environmental regulations did not promote technical progress in the Chinese industrial sector.…”

Section: Environmental Policy Stringency and Environmental Degradationmentioning

confidence: 76%

Do environmental taxes and environmental stringency policies reduce CO2 emissions? Evidence from 7 emerging economies

Wolde‐Rufael¹,

Mulat-Weldemeskel

2021

Environ Sci Pollut Res

124

View full text Add to dashboard Cite

“…For instance, Zhang et al [12] analyzed the influences of different carbon taxes (20 yuan/t, 40 yuan/t, 60 yuan/t) on Henan, Fujian, and Chongqing provinces, and proposed two compensation plans, compensating residents' income and reducing enterprises' indirect tax. Lu et al [13] established the CGE model based on the data from China's input-output table in 2010, and forecasted the influences of tax rate, respectively, at 50 yuan/t, 100 yuan/t, 200 yuan/t, and 300 yuan/t on the economy.…”

Section: Introductionmentioning

confidence: 99%

Effects of an Energy Tax (Carbon Tax) on Energy Saving and Emission Reduction in Guangdong Province-Based on a CGE Model

Chen

Zhou

et al. 2017

Sustainability

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Guangdong, as China's most affluent province, which is representative in terms of its industrial and energy consumption structure, will deal with an important issue about how to change its environmental management policies from command-and-control strategies to incentive-based ones and how to exert its effects to the greatest extent possible in the new situation of the impending imposition of an environmental tax. By establishing an energy Computable General Equilibrium (CGE) model for Guangdong Province, and setting up various taxation and tax refund scenarios, this research simulates the energy saving and emission reduction effects imposed by the imposition of an energy tax or carbon tax at various tax rates in Guangdong Province, and analyzes the mitigation effects upon an economic system by various tax refund plans. The research proves that when the energy tax rate is at 100-200 yuan/tce (ton coal equivalent) or carbon tax at 50-100 yuan/t CO 2 , the energy consumption of Guangdong Province is reduced by 5.8-11.21%, and carbon emission is reduced by 5.94-11.61%. The energy saving and emission reduction effects of the carbon tax surpasses that of the energy tax under the equivalent tax revenue with even fewer significant negative impacts upon the economy, contributing to the capital transfer towards non-energy intensive industries; thus, appropriate and accurate tax refund plans can alleviate the negative impacts of taxation upon the economy in Guangdong Province.

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“…Given the power and flexibility that CGE methods provide, they have been used since the 1990s to study the DD hypothesis with different kind of taxes on different economic systems, including carbon taxes. Jorgenson et al (2013) found a DD for the United States by recycling revenues from a carbon tax into capital taxes; Meng et al (2013) found no DD for Australia for a carbon tax; Allan et al (2014) found a DD for Scotland by recycling revenues from a carbon tax into labor taxes; Chisari and Miller (2015) found a DD for Argentina, Brazil, Chile, El Salvador, Jamaica, and Peru by recycling revenues from a carbon tax into labor taxes; Sajeewani et al (2015) found a DD for Australia for a carbon tax when revenues were recycled into labor taxes; and Othman (2017), Pereira et al (2016), and Zhang et al (2016), who all applied the model to China, did not find a DD for a carbon tax. These different results from the various models are not unusual given how they may differ along many dimensions -country, period, source of data, functional forms, substitution elasticities and other parameter values, factor mobility and market structure, etc.…”

Section: Computable General Equilibrium Modeling and The Dd Hypothesismentioning

confidence: 99%

Carbon taxes and the double dividend hypothesis in a recursive-dynamic CGE model for Spain

Freire‐González

2019

Economic Systems Research

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A carbon tax is potentially a policy that can reduce CO 2 emissions and mitigate climate risks, at lowest economy-wide costs. We develop a dynamic CGE model for Spain to assess the economic and environmental effects of a carbon tax, and test the double dividend (DD) hypothesis. We simulate the impact of three carbon taxes: e10, e20 and e30 per ton of CO 2. For each tax, four 'revenue recycling' scenarios are examined: a reduction of taxes on capital, on labor, on valueadded tax, and a scenario in which revenues are not recycled. We find a DD for taxes of e10/ton and lower, within five to seven years of implementation. We estimate an annual CO 2 emissions reduction of around 10% with this tax. Under some circumstances, the DD can be achieved for a tax of e20/ton. In any case, recycling revenues to cut pre-existing taxes reduces costs of imposing carbon taxes.

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A CGE Analysis of the Impacts of a Carbon Tax on Provincial Economy in China

Cited by 48 publications

References 14 publications

Do environmental taxes and environmental stringency policies reduce CO2 emissions? Evidence from 7 emerging economies

Do environmental taxes and environmental stringency policies reduce CO2 emissions? Evidence from 7 emerging economies

Effects of an Energy Tax (Carbon Tax) on Energy Saving and Emission Reduction in Guangdong Province-Based on a CGE Model

Carbon taxes and the double dividend hypothesis in a recursive-dynamic CGE model for Spain

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