The Impact Of Carbon Tax Rate On Emission Reduction And Economic Stability

Carbon tax reflects the marginal social damage of pollution,through tax on carbon emissions,can internalizing environment's external costs,correcting price distortions,it is a low cost and effective policy tools to achieve the stated objectives of CO₂ emission reduction.However,the carbon tax has its own flaws,the carbon tax will increase fossil fuels cost of production sector,shift prices to transfer the cost of the carbon tax to consumers,resulting in a decreased purchasing power of residents?Carbon tax guide the behavior of economic agents by changing the relative price of factors,but the degree of influence of different carbon tax is depend.Therefore,a reasonable carbon tax policy must consider whether the social can withstand the negative effects in the short term.Firstly,based on the theory of carbon tax policy,drawing on the experience of Western European countries levy,we set different carbon tax rate.Secondly,based on the input-output table,this paper set short-term impact model of the carbon tax,that is,when the external environment changes,the effect of various departments CO₂ emissions,we also investigated the marginal effect of CO₂ emissions at different carbon tax rate,namely the CO₂ tax reductions of per unit carbon tax brings.Then we examines price changed in departments under different carbon tax rates,and thus calculate the price changes,combined with the effect of CO₂ emissions,comparing the marginal effect of CO₂ reduction and CPI at different tax,identify the proper carbon tax interval which has a good reduction effects and small price increasing.Finally,calculate the impact of the carbon tax levied on income levels,including the direct effects of energy products consuming and indirect effect of price changing,analyze the regressive effects on the income distribution and the Gini suit,and consider remedial strategies.The main conclusion include:?1?Carbon tax have a positive effect on emissions,it can effectively reduce the CO₂ emission and achieve the purpose of protection of the environment;the carbon emission reductions increase as the tax rate rise,but the marginal effect of CO₂ emissions is not significant;?2?At the same time,a carbon tax will lead to high product prices,pushing up the price level,which has a bad effect on the stable economic development.The price increase as the tax rate rise,but the marginal effect of price increases is different;?3?The marginal effect of CO₂ reduction and price increases is different.In the 40 to 60 yuan per ton carbon tax range,increasing the unit carbon tax push a minimum prices rising,but a steady increasing in CO₂ emission reductions;?4?Carbon tax is regressive,It tired impact on low-income residents more than high-income families,which bring more burden on household spending,expanding the social gap.