Research On The Macroeconomic Effects Of Carbon Emission Subsidies And Carbon Taxes Policies

The issue of carbon emissions is one of the major public product challenges that the world is facing now.China has signed the "UNFCCC","Kyoto Protocol" and "Paris Agreement" successively in 1992,1997 and 2015,which has assumed the responsibility for the issue of global warming.China’s declarations at the Fifth Plenum of the 19 th Central Committee of the Communist Party of China and the 75 th Session of the United Nations General Assembly have demonstrated to the world China’s firm confidence China’s future economic development must also be based on environmental protection,sustainable and resource-saving development.Therefore,researching environmental policies has great significance in economic growth and environmental quality.In the past 40 years,China has made outstanding achievements in carbon emission reduction.However,due to the reasons of the large population base and the irrational industrial structure,China’s carbon emissions are still very large.Therefore,China is still facing a huge pressure to reduce carbon emissions.Against this backdrop,this paper makes a series of studies on the macroeconomic effects of carbon emission subsidies and carbon taxes policies.First of all,this paper analyzes the current status of China’s overall and spatial carbon emissions.Secondly,this paper constructs an E-DSGE model that includes carbon emission subsidies and carbon taxes policies based on China’s reality and uses the Calibration method and Bayesian method to estimate the parameters of the model.Thirdly,based on R software,this paper simulates the impact of environmental policies and changes in technological level on China’s macroeconomic and residents’ welfare,and tests the robustness of the model from three perspectives.Finally,this paper draws the following clear and meaningful conclusions based on the impulse response analysis:Firstly,in the short term,production technology impact is better than environmental protection technology impact,because production technology impact will increase output and improve environmental quality in the short term,while environmental protection technology impact will reduce output;in the long term,environmental protection technology impact is better than the impact of production technology,because environmental protection technology can make the output turn from negative to positive in the long term,while the environmental quality is also greatly improved.and the impact of environmental protection technology can effectively reduce carbon emissions while the impact of production technology will increase carbon emissions.Secondly,the impact of the carbon tax rates will improve the environmental quality,but them will reduce the output level;the impact of the carbon emission subsidy rates will increase the output level,but them will decrease the environmental quality.If the carbon tax rates are increased,the environmental quality will be improved more significantly;if the carbon emission subsidy rates are increased,the output level will rise more significantly;therefore,it is possible to make the output level and environmental quality a win-win situation when the carbon tax policy and carbon emission subsidy policy are implemented at the same time.Thirdly,among all the five major shocks,the carbon emission subsidies shocks cause fluctuations in the economic system and environmental system in the shortest time.So the carbon emission subsidies are effective in the short term,them may not be as good as other major impacts in the long-term effect.Fourthly,an increase in the intensity of carbon emission subsidies policy will further increase the welfare of residents,while an increase in the intensity of carbon tax policy will further reduce the welfare of residents.Based on the above conclusions,this paper puts forward corresponding suggestions and countermeasures from the three perspectives of government departments,corporate departments and residential departments.