Economic Effects Of Carbon Tax With Different Taxes Swaps

To deal with global warming,governments from all over the world are discussing carbon tax to decrease carbon emissions.In this paper,we use the Computable General Equilibrium Model calibrated by Chinese economic data to analyze the economic and environmental effects of carbon tax.We found that the carbon tax of 150 RMB yuans per ton will reduce carbon emission significantly,that reduces 40-50%emissions per output in specific,while the total outputs are,however,reduced and economic growth slows down further.Besides,we compares economic and welfare results with different ways of recycling revenues.It shows that the result of double dividends depends on what kind of tax instrument to be used and only consumption tax achieves it.To explore the welfare effect in a wider way,we take the environmental factor as well as the intertemporal factor into account and find out on what condition households decide a tradeoff.Finally,we extend the CGE model to the dynamic one and that it still reach the goal of carbon reduction,even in the baseline of slowing economic growth rate in China.The research contributes on deepening the understanding the propagation mechanisms of carbon tax in the distorted economies.The quantitative results give the intellectual supports on environment policies reforms in China.