The Research On Fiscal And Tax Policy Of Low-carbon Economy In China

Confronted with the climate challenges caused by human being’s activities, thelow-carbon economy has become a new trendy in the modern world. Most of thewestern countries take more efforts in studying the theory of low-carbon field and putthem into practice, trying to take up the high position of low-carbon economy.Therefore, it is necessary and urgent to develop low-carbon economy. As aresponsible country, China should make more research in this field and take effectivemeasures to develop it. Only in this way can we change the unfavorable economicdeveloping method, increase the efficiency of utilizing resources and improving theenergy structure and living environment. Different countries adopt different methods;however, the tax and public financing method play very important roles in the process,which is worth our attention and studying.Because low-carbon economy is a new beginning, we should put more effort instudying it. Different from the traditional economic developing method, it emphasizesthat all the production part should be related with it, including production,transportation, distribution and consumption, that is to realize the goal of low energyconsumption, low emission, low pollution and high energy efficiency. There are manyproblems in the process of developing low carbon economy, such as the low carbontax policies are vacant or aren’t put into practice, the public finance isn’t enough, themarket system isn’t perfect and carbon emission trade system isn’t good. This paperfirstly introduces the theory background, including the externality, public goods, thesustainable development and ecological capital theory. We can learn from theexperiences of the European Union, the United States and Japan. To make advices andmeasure more persuasive, besides normative method, we also adopt the positivemethods. Based on the CGE model, we analyze the effects on the economy of levyingcarbon tax and improving carbon emission trade system. Finally, we can get theconclusion that it is wise for us to make the tax structure green, coordinate the function of market system, tax policy and administrative measures to develop thelow-carbon economy fast.