Exploring the impacts of a carbon tax on the Chinese economy using a CGE model with a detailed disaggregation of energy sectors

Guo, Zhen; Zhang, Xingping; Zheng, Yuhua; Rao, Rao

doi:10.1016/j.eneco.2014.08.016

Cited by 190 publications

(62 citation statements)

References 26 publications

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“…We can determine that the carbon tax strengthens the performance of the departments of the manufacture of instruments and meters (20), manufacture of communication equipment (19), manufacture of general-purpose and special-purpose machinery (16), manufacture of electrical machinery and equipment (18) (seen in Figure A2), which are low energy density, but further reduces the economic indices of those with higher energy density, which demonstrates that a carbon tax can further deepen the inter-departmental influences, which is more beneficial for the transfer of social labor and capital towards non-energy intensive industries.…”

Section: Comparison Between a Carbon Tax And An Energy Taxmentioning

confidence: 99%

“…The departments of the manufacture of transport equipment (17), manufacture of communication equipment, and computers (19), manufacture of electrical machinery and equipment (16), and manufacture of instruments and meters (20) even show increases in their output and goods transferred out (seen in Figure A1),which indicates the transfer of labor and capital from high-energy intensity departments It can be seen from Figure 4 that the top five departments with reduced energy consumption are non-metal mineral products (13), communication and transportation (29), metal smelting (14), power (24), and petroleum coking products (11), with respective energy saving ratios of 15.08%, 9.00%, 8.80%, 8.57%, and 8.13%; the top five departments with reduced CO 2 emission are the departments of non-metal mineral products (13), communication and transportation (29), metal smelting (14), papermaking and printing (10), and petroleum coking products (11), with respective emission reduction ratios of 17.92%, 9.29%, 8.80%, 8.53%, and 8.31%.…”

Section: Effects Of the Energy Tax Upon Energy Saving And Emission Rementioning

confidence: 99%

Section: Effects Of the Energy Tax Upon Energy Saving And Emission Rementioning

confidence: 99%

“…Liang et al [14,15] analyzed the influence of a carbon tax on China's economy, proving that a carbon tax can affect energy-intensive and export-oriented departments enormously, which can be compensated by a properly-reduced tax rate and subsidy. Guo et al [16] divided the energy department into eight sub departments, and explored the influence of four tax rates at 17.18 yuan/t, 36.49 yuan/t, 81.08 yuan/t, and 132.01 yuan/t corresponding to the CO 2 emission reduction by 5%, 10%, 20%, 30% on the economic environment by means of the CGE model. Based on the CGE model, Hu [17] simulated that under the energy tax plan of 27 yuan/tce, energy intensity can be lowered by 6.9% and 6.99%, respectively, in the short and long run.…”

Section: Introductionmentioning

confidence: 99%

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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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Section: Comparison Between a Carbon Tax And An Energy Taxmentioning

confidence: 99%

Section: Effects Of the Energy Tax Upon Energy Saving And Emission Rementioning

confidence: 99%

Section: Effects Of the Energy Tax Upon Energy Saving And Emission Rementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

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

View full text Add to dashboard Cite

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“…Lots of previous studies proposed that an optimal tax rate should be equal to the marginal abatement cost (MAC) of CO 2 . A low-level tax rate cannot stimulate emissions reduction, and a high tax rate can cause erosion of industries' competitiveness [9]; (2) How can mandatory emissions reduction targets be reached in an effective way? The market price of an ETS and the MAC of CO 2 are certainly the information every enterprise needs [10].…”

Section: Introductionmentioning

confidence: 99%

Marginal Abatement Cost of CO2 in China Based on Directional Distance Function: An Industry Perspective

Xiao

Niu

et al. 2017

Sustainability

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Industrial sectors account for around 70% of the total energy-related CO 2 emissions in China. It is of great importance to measure the potential for CO 2 emissions reduction and calculate the carbon price in industrial sectors covered in the Emissions Trading Scheme and carbon tax. This paper employs the directional distance function to calculate the marginal abatement costs of CO 2 emissions during 2005-2011 and makes a comparative analysis between our study and the relevant literature. Our empirical results show that the marginal abatement costs vary greatly from industry to industry: high marginal abatement costs occur in industries with low carbon intensity, and vice versa. In the application of the marginal abatement cost, the abatement distribution scheme with minimum cost is established under different abatement targets. The conclusions of abatement distribution scheme indicate that those heavy industries with low MACs and high carbon intensity should take more responsibility for emissions reduction and vice versa. Finally, the policy implications for marginal abatement cost are provided.

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Exploring the impacts of carbon tax on tourism‐related energy consumption in China

Zhang

2018

Sustainable Development

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A carbon tax policy has been advocated as an effective tool to develop low‐carbon economy in China. As one of the most influential and dynamic industries, Chinese tourism industry will foresee a new challenge under the carbon tax scenario. Given this background, this study explores the impacts of carbon tax on tourism development from the perspective of energy consumption by using computable general equilibrium modeling in China. Our findings clearly indicate that (a) the proportion of tourism energy consumption to national energy consumption in China will increase over time, (b) the impacts of carbon tax on China's tourism fossil energy consumption, electricity consumption, and energy intensity will become increasingly weak, (c) the impacts of a carbon tax on electricity use are greater than the impacts on fossil fuel consumption, and (d) the impacts of different carbon taxes on the levels of energy consumption and energy intensity will vary to a significant degree between the different tourism sectors. Our results are conducive to recognizing the changes of tourism energy consumption levels after levying a carbon tax. Furthermore, this paper also has a certain reference value to guide any relevant, subsequent studies in other destinations or economic sectors, worldwide.

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Exploring the impacts of a carbon tax on the Chinese economy using a CGE model with a detailed disaggregation of energy sectors

Cited by 190 publications

References 26 publications

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

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

Marginal Abatement Cost of CO2 in China Based on Directional Distance Function: An Industry Perspective

Exploring the impacts of carbon tax on tourism‐related energy consumption in China

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