Research On The Improvement Of Environmental Tax In Jiangsu Province For Carbon Emission Reduction

On September 22,2020,General Secretary Xi Jinping pointed out that China will strive to achieve carbon summit by 2030 and achieve carbon neutralization by 2060 in the general debate of the seventy-fifth UN General Assembly.In recent years,the total carbon dioxide emissions of Jiangsu Province are still on the rise,and there is a great pressure to achieve the peak carbon emissions before 2030.Faced with the arduous task of carbon emission reduction,improving the environmental tax policy has become more and more popular.Based on the analysis of domestic and foreign environmental tax cases and its impact,this study takes Jiangsu Province as an example to study,relying on the current "Environmental Protection Tax Law".The environmental social accounting matrix of Jiangsu Province in 2018 including the environmental protection tax account is compiled,and the micro social accounting matrix is used as the basic data input.Combined with the research needs,the general equilibrium model is constructed,and the equations including environmental protection tax and carbon tax are designed to realize the dynamic model.Different scenarios are set to simulate the impact of higher environmental protection tax and carbon tax on Jiangsu Province.The results are shown as follows:Firstly,the environmental protection tax with higher rate would have a inhibitory impact on the economy,but it could reduce carbon emissions.The impact on the output of different sectors is different.The output of high pollution sectors in Jiangsu province such as coal mining,chemical industry and metal manufacturing industry would decline,while the output of low pollution sectors in Jiangsu province such as agriculture,forestry,animal husbandry,fishery and other manufacturing industries would rise.The reason is that when the tax rate of environmental protection rises,the cost of high pollution sector rises more,and the capital and labor force turn to low pollution sector,which would make the sector output rise.Secondly,compared with the higher tax rate of environmental protection tax,the effect of carbon tax on carbon emission reduction is more obvious.Levying carbon tax also reduces the income of environmental protection tax,indicating that it has a synergistic effect on reducing pollutant emissions.Its impact on different departments is different.The output of high carbon emission sectors in Jiangsu province such as metal manufacturing,machinery and equipment manufacturing would decrease,while the output of low carbon emission sectors in Jiangsu province such as agriculture,forestry,animal husbandry,fishery and other manufacturing industries would increase.The reason is that when the carbon tax is levied,the low-carbon emission sector is less affected,and the capital and labor force turn to the low-carbon emission sector,which makes the sector output rise.According to the simulation results,in order to achieve the goal of carbon emission reduction,we should comprehensively consider the impact of carbon tax on economic development and carbon emission reduction,and it is suggested that Jiangsu Province could levy carbon tax with 40 yuan per ton of carbon dioxide.For the sectors with low carbon emissions,it needs to encourage them to develop;for the sectors with large carbon emissions,it needs to urge them to carry out transformation and upgrading to reduce carbon emissions.Jiangsu Province also needs to introduce more advanced energy utilization technology,grasp the local energy characteristics,and develop renewable energy industry.