How to Promote Low-Carbon Economic Development? A Comprehensive Assessment of Carbon Tax Policy in China

Liu, Weijiang; Li, Yangyang; Liu, Tingting; Liu, Min; Wei, Hai

doi:10.3390/ijerph182010699

Cited by 25 publications

(9 citation statements)

References 56 publications

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“…Recent contributions by Pretis (2022) and Pan et al (2024) delve into the specificities of carbon tax design and its implications for emissions reduction in general. Similarly, there are a range of case studies, including experiences from Sweden and British Columbia, to elucidate the tangible outcomes and challenges associated with carbon taxation (Metcalf, 2019, Andersson, 2019, Liu et al, 2021, Ptak et al, 2024.…”

Section: Carbon Taxationmentioning

confidence: 99%

Global Versus Regional Carbon Taxation: Exploring a Natural Experiment

Herzog

2024

GLCE

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The reduction of global greenhouse gas emissions has priority due to climate change. Scientists across disciplines promote carbon taxation or carbon pricing as an instrument to mitigate the negative externality of fossil energies. We exhibit two insufficiencies of today’s regulatory policy by utilizing a novel natural experiment. First, carbon taxation is only effective if it is implemented on a global scale because fossil energy markets and emissions are cross-border and global. Second, carbon taxation is based on an extrinsic mechanism and does not alter intrinsic behaviour sustainably. Our applied theory and modelling approach is corroborating these findings. The present regulatory approach is doomed to fail due to overambitious European countries and unambitious (partly realistic) rest of the world. Our interdisciplinary analysis unravels a new agenda to achieve the essential aim. What is needed is a global climate club, as proposed by Nobel Laureate William Nordhaus, with a least but global greenhouse gas reduction.

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Section: Carbon Taxationmentioning

confidence: 99%

Global Versus Regional Carbon Taxation: Exploring a Natural Experiment

Herzog

2024

GLCE

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“…Fourth, facilitate an industrial structure optimization and upgrading strategy that suits the reality of the region. Build a deep industrial system covering the whole industrial chain and promote long-term sustainable economic development [58]. Last but not least, properly optimize the energy structure, appropriately reduce energy use with high carbon emission factors, and raise the proportion of clean energy.…”

Section: Sustainable Industrial Development Policymentioning

confidence: 99%

Knowledge Mapping of Research on the Impact of Industrialization on Carbon Emissions in China: a Bibliometric Analysis Using CiteSpace and VOSviewer

Dai¹,

Zhou²,

Zhao³

et al. 2023

Pol. J. Environ. Stud.

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The relationship between industrialization and carbon emissions is incredibly complicated. Numerous academics have studied this subject in-depth and produced a wealth of research findings, but there has not been a comprehensive evaluation and analysis. As a result, the Web of Science Core Collection is used as the study's data source, and China is chosen as the research object. Visualization software CiteSpace and VOSviewer are utilized to conduct cooperation network analysis, co-citation analysis and cluster analysis to analyze the research progress and frontier of the impact of industrialization on carbon emissions in China (IICEC). The results indicate that: (1) Since 2007, the research enthusiasm for IICEC has grown and gone through three stages; (2) Most research institutions and authors are from China, and significant transnational research teams have not yet been established;(3) The most popular journal for this research is Journal of Cleaner Production, whereas Energy Policy has the most citations; (4) The overall research hotspots can be divided into five clusters. Based on these findings, possible future research frontiers were identified, including carbon emission decoupling analysis and carbon transfer, life cycle analysis and life cycle cost analysis of the industry, and embodied carbon measure.

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“…In previous studies, revenue recycling policies also have been considered to limit the negative effects of the carbon tax on economic development and welfare. Liu et al (2021) analyzed the carbon tax recycling policies based on the principle of tax neutrality such as reducing residents' personal income tax, the enterprise income tax rate and the enterprise indirect tax rate. They found that these policies can reduce the drawbacks of the carbon tax on economic development and welfare.…”

Section: Effects Of a Carbon Tax In Vietnammentioning

confidence: 99%

Simulating the environmental and economic effects of a carbon tax in Vietnam: a static computable general equilibrium analysis

Nguyen

2023

MEQ

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PurposeA carbon tax has been widely discussed and implemented in developed countries to mitigate carbon emissions, but this measure is still quite new in developing countries. Recently, the ambition of Vietnam's government in mitigating emissions has been mentioned in international commitments. To achieve these targets, the government is making efforts to seek and implement mitigation measures in the country. While carbon pricing was introduced in Vietnam, there is no study simulating the effects of a carbon tax in the country. This study simulates the environmental and economic effects of a carbon tax and then proposes appropriate policies in Vietnam.Design/methodology/approachThis study investigates the impact on the Vietnamese economy within the static computable general equilibrium (CGE) framework. Compared with previous models, the proposed model in this paper is a fairly standard CGE approach that tries to picture the economic system of Vietnam. In addition, a carbon tax on output will be modeled in this framework. This carbon tax mechanism is more flexible and direct when a carbon tax is based on direct emissions by industry level and the industry's carbon intensity. The paper decomposes the Vietnamese economy into 18 different production sectors, based on the different emission levels of CO2. The CGE model makes possible to examine the impact of a carbon tax on the whole economy through all possible channels and to differentiate a separate carbon tax among different production sectors. The impact of a differentiated carbon tax is explored not only at the macroeconomic level but also at each different industrial level. Another feature of this paper is to investigate the impact of reallocation revenue from the carbon tax.FindingsThis paper has found that by designing carbon tax scenarios at different carbon prices ($1/tCO2, $5/tCO2, $10/tCO2) with different targeted industries, this study shows that higher carbon prices cause greater damage to GDP and welfare, but also better reductions in emissions. In addition, a carbon tax on the energy sectors results in milder economic and welfare damage but less emission reduction than when levying on all sectors. At the sectoral level, a carbon tax might cause sectoral restruction. Interestingly, the electricity sector is the most affected and also is the main contributor to reducing emissions in Vietnam. Finally, the study also shows that reallocation policies of new revenue from the carbon tax would reduce the economic damage caused by carbon taxes, and in many cases promote GDP and welfare. However, these policies reduce the environmentally positive impact of the carbon tax and even induce an increase in emissions in some cases.Originality/valueThis paper studies the pure impacts of a carbon tax, it also simulates the impact of several recycling policies where the increased tax revenue is incorporated. Thereby, this research supports to design and implement carbon tax policies in Vietnam. This paper also would contribute to the literature an example of the adoption of the carbon tax in a developing country, and it could be a lesson for others with similar conditions. Compared with previous models, the proposed model in this paper is a fairly standard CGE approach that tries to picture the economic system of Vietnam. In addition, a more flexible carbon tax mechanism is proposed to improve adequate coverage of emission resources.

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How to Promote Low-Carbon Economic Development? A Comprehensive Assessment of Carbon Tax Policy in China

Cited by 25 publications

References 56 publications

Global Versus Regional Carbon Taxation: Exploring a Natural Experiment

Global Versus Regional Carbon Taxation: Exploring a Natural Experiment

Knowledge Mapping of Research on the Impact of Industrialization on Carbon Emissions in China: a Bibliometric Analysis Using CiteSpace and VOSviewer

Simulating the environmental and economic effects of a carbon tax in Vietnam: a static computable general equilibrium analysis

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