The general equilibrium impacts of carbon tax policy in China: A multi-model comparison

Cao, Jing; Dai, Hancheng; Li, Shantong; Guo, Chaoyi; Ho, Mun S.; Cai, Wenjia; He, Jinhai; Huang, Hai; Li, Jifeng; Liu, Yu; Qian, Haoqi; Wang, Can; Wu, Libo; Zhang, Xiliang

doi:10.1016/j.eneco.2021.105284

Cited by 101 publications

(46 citation statements)

References 28 publications

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“…As the CGE model can capture the direct and indirect effects of exogenous changes in the economy and identify the impact mechanisms across the economy, it provides a useful tool for a variety of policy-oriented studies related to macroeconomic, trade, and environmental policies. The CHINAGEM model is widely used in analyzing the effects of energy policies [ 31 , 42 , 44 ]. Based on neoclassical economic theory, it assumes that the market is fully competitive, and the returns to scale of production remain unchanged.…”

Section: Methodsmentioning

confidence: 99%

“…They also found that renewable energy policies could play a vital role in achieving China’s carbon peak goal before 2030, such as carbon market [ 19 , 20 ], reduction in fossil-fuel subsidies [ 21 , 22 , 23 ], electricity market reform [ 17 , 24 , 25 ], renewable energy portfolio standards [ 26 , 27 ], and mix of other policies [ 28 , 29 ]. Nevertheless, several recent studies have found that current renewable energy policies are not able to abate CO 2 emissions effectively [ 30 , 31 , 32 ]. For example, Guo et al (2021) found that the improvement of renewable energy technologies could not prevent carbon emissions from continuously increasing toward 2030, and the carbon peak goal may not be realized [ 30 ].…”

Section: Introductionmentioning

confidence: 99%

“…For example, Guo et al (2021) found that the improvement of renewable energy technologies could not prevent carbon emissions from continuously increasing toward 2030, and the carbon peak goal may not be realized [ 30 ]. Cao et al (2021) also suggested that the single policy of the carbon market could not achieve the carbon neutrality goal, and more ambitious policies are needed, such as rapid electrification and deep economic transformation [ 31 ]. Furthermore, Zhao and Zhong et al (2022) even found that the incremental consumption of renewable energy would increase carbon emissions, as the development of renewable energy may crowd out nuclear power and increase the peak-shaving demand for fossil-fired electricity [ 32 ].…”

Section: Introductionmentioning

confidence: 99%

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The Effectiveness and Trade-Offs of Renewable Energy Policies in Achieving the Dual Decarbonization Goals in China: A Dynamic Computable General Equilibrium Analysis

Wei

et al. 2022

IJERPH

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China’s government has enforced a series of renewable energy policies to promote renewable energy development and achieve the dual decarbonization goals. However, there exists great disparity in previous studies on the effectiveness and suitability of renewable energy policies in abating carbon emissions. This study employs a dynamic general equilibrium model and assesses the effectiveness and trade-offs of renewable energy policies in achieving the dual decarbonization goals by 2060 in China. These policies include carbon market (CRP), the reduction of feed-in tariffs (FIT), the reduction of fossil fuel subsidies (FSB), the reduction of renewable energy costs (REC), resource taxes (RTX), and renewable portfolio standards (REP) as well as the mix of these policies. We find that renewable energy policies together could abate China’s CO2 emissions in 2060 by 2.57 billion tons, but their effectiveness is very different. The REC would have the greatest effectiveness in abating CO2 emissions, followed by REP and CRP. Renewable energy policies would cause relatively slight damage to China’s GDP, with the exception of the REC (raising GDP by 1.1713%). Regarding trade-offs, most policies will sacrifice China’s internal and external demand but benefit employment. Renewable energy policies will effectively promote the low-carbon transformation of China’s energy structure.

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Section: Methodsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The Effectiveness and Trade-Offs of Renewable Energy Policies in Achieving the Dual Decarbonization Goals in China: A Dynamic Computable General Equilibrium Analysis

Wei

et al. 2022

IJERPH

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“…Penelitian atas penerapan pajak karbon di China juga pernah dilakukan. Penelitian ini dilakukan dengan tujuan untuk melihat bagaimana pengaruh terhadap emisi karbon dan terhadap PDB China jika semisal pajak karbon diterapkan di China oleh Cao et.al (Cao et al, 2021). Penelitian tersebut dilakukan dengan menggunakan 8 (delapan) skema tarif pajak karbon yang diterapkan oleh peneliti.…”

Section: Pendahuluanunclassified

Penerapan Pajak Karbon Di Swedia Dan Finlandia Serta Perbandingannya Dengan Indonesia

Barus

Wijaya

2022

JPI

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Penelitian ini dilakukan dengan tujuan untuk melihat bagaimana tarif dan mekanisme penerapan pajak karbon di Swedia dan Finlandia untuk kemudian dibandingkan dengan rencana penerapannya di Indonesia berdasarkan Undang-Undang Nomor 7 Tahun 2021. Metode penelitian yang digunakan berupa kualitatif deskriptif dengan metode pengumpulan data berupa wawancara dan studi literatur. Hasil penelitian ini menyimpulkan bahwa Swedia, yang memiliki tarif pajak karbon tertinggi di dunia, berhasil menekan emisi karbonnya dan tanpa memberikan dampak negatif bagi perekonomian negaranya. Serupa dengan Finlandia, yang merupakan negara pertama yang menerapkan pajak karbon di dunia, berhasil menekan emisi karbonnya dan tanpa memberikan dampak negatif bagi perekonomian negaranya. Indonesia akan mulai menerapkan pajak karbon sejak April 2022 atas sektor Pembangkit Listrik Tenaga Uap-batu bara, dimana mekanisme yang diterapkan adalah Cap-and-Tax yakni gabungan dari perdagangan karbon dan emisi karbon. Tarif pajak karbon yang diterapkan adalah sama dengan harga karbon di pasar karbon namun tidak boleh kurang dari Rp30 per kilogram CO₂ ekuivalen.

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“…The carbon tax rate can significantly affect emission reductions, and governments must set a higher rate to further abate emissions at the national level. However, policymakers favor a moderate tax rate [41].…”

Section: Traditional Policy Effect Of Carbon Taxesmentioning

confidence: 99%

The Green-Innovation-Inducing Effect of a Unit Progressive Carbon Tax

Xiao

Meng

et al. 2021

Sustainability

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The major global economies are facing increasing pressure to reduce their carbon emissions. Introducing environmental policy instruments to stimulate green innovation is key to mitigating global warming. We propose a carbon tax design with a typical green innovation orientation that links carbon taxes with the low-carbon technology (LCT) of enterprises and imposes a progressive tax on heterogeneous enterprises with LCT stock to encourage green innovation. This study used a dynamic evolution game model based on the Stackelberg model of heterogeneous enterprises with LCT stock to analyze the green-innovation-inducing effect of unit progressive carbon taxes. A unit progressive carbon tax could encourage enterprises to participate in green innovation, regardless of their initial green innovation willingness. The progressive tax rate was more effective than a fixed rate for stimulating green innovation by all enterprises. There was a marginal diminishing effect of increases in the tax rate. An increase in the innovation cost coefficient of enterprises reduced the green-innovation-inducing effect of the unit progressive carbon tax. Increasing the tax rate was effective only under normal circumstances. A decline in the carbon reduction in enterprises also reduced the green-innovation-inducing effect of the unit progressive carbon tax. Furthermore, increasing the tax rate when the carbon reduction amount was extremely low caused enterprises to abandon green innovation.

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The general equilibrium impacts of carbon tax policy in China: A multi-model comparison

Cited by 101 publications

References 28 publications

The Effectiveness and Trade-Offs of Renewable Energy Policies in Achieving the Dual Decarbonization Goals in China: A Dynamic Computable General Equilibrium Analysis

The Effectiveness and Trade-Offs of Renewable Energy Policies in Achieving the Dual Decarbonization Goals in China: A Dynamic Computable General Equilibrium Analysis

Penerapan Pajak Karbon Di Swedia Dan Finlandia Serta Perbandingannya Dengan Indonesia

The Green-Innovation-Inducing Effect of a Unit Progressive Carbon Tax

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