Study On The Influence Of Carbon Trading On Industrial Competitiveness Of Tianjin With CGE Model

Recently, people payed more and more attention to the increasing of greenhouse gas emissions which caused climate change. To reduce the emissions, many countries have adopted a series of measures including carbon tax, energy taxes, carbon emissions trading, relevant laws and regulations, etc. As a large GHG emissions country in the world, China received great pressure on GHG emissions reduction in the international negotiations. According to the IEA figures, in 2007 carbon dioxide emissions of China which caused by energy activities exceeded United States for the first time and achieved the highest of the world. Combined with the shortage of domestic resources, the seriously environment pollution and the low efficiency of energy utilization etc, how to control carbon dioxide emissions while guaranteeing economic growth become the major problem which faced Chinese government. In 2011, as a market mechanism to reduce carbon dioxide emissions, carbon emissions trading was introduced into China for the first time and make Tianjin as one of the first pilot areas in China.This paper constructed a CGE model to analysis the impact of carbon emissions trading on Tianjin industries’competitiveness. The model simulated the carbon price in 20 RMB/tons,50 RMB/tons,100 RMB/tons respectively and evaluated the influence of carbon emissions trading on overall economy and nine key emissions industries in Tianjin which refer on the current domestic carbon price in seven pilots. The results show that the implementation of carbon emissions trading has a little influence on the overall economy of Tianjin. In the city’s level, it has positive effect on the reducing of carbon dioxide emissions(-0.03-0.36%)and primary energy consumption, but also can bring negative influence of GDP(-0.01%-0.06%), export, and sending out products. From the industry level, the biggest impact was the five industries in carbon emissions trading system. It can lead to reduce the value-added, export and sending out and rise the output prices of the five industries. The greatest effect was the electric industry, the biggest drop in value-added (-0.8%) and sending out(-4.4%) and highest rise in output prices(0.82%). For the other industries which were not in the system, the affect can be ignored.