An Analysis Of The Impacts Of A Carbon Tax On Energy And Economy In Zhejiang Province

Based on the full study of CGE model theory and domestic and foreign CGE model in the evaluation of the carbon tax policy, the paper established the computable general equilibrium model to evaluate the impact of carbon tax policy on energy and economic system. Taking Zhejiang Province as an example. We woke out the Zhejiang province social accounting matrix including 17 sectors and GAMS analysis program. The energy sectors included coal mining industry, natural gas and gas production and supply industry, petroleum processing and coking industry, thermal power production and supply industry, clean power production and supply industry. We systematically analyzed the impact of carbon tax policy on the regional energy and economy system, including carbon tax object, different carbon tax rates, as well as the impact of the use of carbon tax recycling use in Zhejiang province.The research results showed that the carbon tax has a positive effect on reducing the consumption of fossil energy and carbon emission.The ad valorem tax of coal was highest, oil and coke was middle, natural gas and gas was minimum. Coal had the most remarkable contribution to reduce carbon emissions, followed by oil and coke, natural gas and gas were minimum. The carbon tax resulted a decline the output of energy sectors, and some sectors’ output declines,others increase. With the carbon tax increase, the decrease and increase were more significant. The impacts of carbon tax policy on macro economic variables had different result. The total income, government income, government demand, total savings and nominal GDP rose. Or the residents demand, social welfare, total investment and real GDP declined. The implementation of carbon tax recycling use policy compared with the direct carbon tax policy relieved on energy consumption and carbon emissions, sector output and macro social economic variables impact. But the relief degree was not very evident.In terms of theoretical and academic research, the model and scenario simulation in this analyzed the impact of carbon tax on energy and economy system from the angle of region. Moreover, this paper supplied a set of methods to evaluate regional carbon tax. The methods dissected the implementation feasibility of carbon tax in our country more comprehensively. The research further enriched the theoretical study of China’s carbon tax policy and provided a meaningful reference for our country to develop more scientific and reasonable carbon tax policy.