The Green Growth Policy Analysis Based On CGE Model In China

Energy shortage and environmental pollution have become the two key factors restricting the development of China’s economy. How to coordinate the relationship between economic growth and energy consumption as well as seeking for a path to promote the transformation of economic growth mode and to boost green economic growth, have become an urgent need from the perspective of present stage of development. Although the Twelfth Five-year Plan and the18th Party Congress have both mentioned about the positive transformation of economic growth mode and the establishment of a idea of green and low carbon, for the understanding and implementation of green growth, still remained at a strategic level, and we lack for a scientific theory and a policy system.With the burgeoning of computer technology, the use of mathematical models for policy simulation has become an essential element of the policy-making process. CGE which is in short of the Computable general equilibrium model is a ubiquitously utilized tool for policy analysis in recent years. An increasing number of scholars have been engaged in studying the model, and what is more, applying the model to analyzing the policy simulation in terms of taxation, trade, environment, etc. Consequently, on the basis of the antecedent domestic and foreign researches, this paper is making an attempt to establish a CGE model for simulating China’s green growth policy scenarios and providing constructive suggestions for the development of China’s green growth policy-making.Firstly, the specific orientation for policy simulation is determined based on the CGE model concerning the current domestic and international practices. Then the crucial elements are recognized by means of studying and analyzing them in the policies and actions implemented by several major developed countries. Ultimately, the SAM matrix is built on which the CGE model is based to simulate the green growth policy operating results.