Fiscal Policies To Mitigate Climate Change

In recent years, the issue of climate change has become a focus. Research has shown that the emissions of greenhouse gases are the chief cause of climate change, and the industrial pollution of human activities is the prime cause of the emissions of greenhouse gases. Because of lacking of exclusiveness, people from all over the world discharge greenhouse gases to the global atmosphere irrationally, so we can see the phenomena as the greatest market failure in the world so far. The emissions of global greenhouse gases have increased rapidly since the industrial revolution, which has effect notable changes in atmospheric environment, such as El Nino and La Nina phenomenon. Many serious environment problems have arisen with the rapid growth of economy since the Openness and Reform, and the emission of the large volume of Carbon dioxide (the main part of greenhouse gases) is one of them. As a result, the study of the fiscal and taxation policy in the area of climate change is very important for the government to compensate and balance the market failure and develop low carbon economy.This dissertation conducted a study on how can we utilize the fiscal and taxation policies to accelerate the process of economic restructuring and to develop low carbon economy. This dissertation is divided into five parts:the first part introduces the theoretical and practical significance of this topic, the review of literature, and the research ideas and method; the second part analyzes the importance of the macroeconomic policies in the area of climate change by the Long-range Energy Alternative Planning (LEAP) system based on the theory of based on the theories, and makes a further analysis of the importance of the fiscal and taxation policies among the macroeconomic policies by analytic hierarchy process; the third part elaborates the current situation of the climate change in our country, summarize the current fiscal and taxation policies in the area of climate change and analyzes related problems; the fourth part draws inspiration from the international comparison of the fiscal and taxation policies in the area of climate change; the fifth part makes a framework design of the fiscal and taxation policies in the area of climate change, which is to place economic incentives policy first, research and development policy second, and cooperate with other measures such as management and executive system, and makes some policy recommendations.The innovation in this dissertation:calculates the amount of the greenhouse gases discharge in China by the Long-range Energy Alternative Planning system basing on the predicted date of all kinds of energy consumption; analyzes the importance of the fiscal and taxation policies among the macroeconomic policies by analytic hierarchy process and makes a framework design of the fiscal and taxation policies in the area of climate change.