The Impact Of Carbon Tax On China’s Transportation Industry

With the increasingly severe global warming issue,more and more countries are actively seeking solutions to reduce carbon dioxide emissions,which is one of the important causes of global warming.China’s carbon emissions have become increasingly severe,making it a challenging task to maintain a healthy ecosystem while achieving economic growth,reducing carbon emissions,and developing a green,low-carbon,and sustainable economic model.The carbon emissions of the transportation industry are growing rapidly,accounting for about 10% of China’s total carbon emissions.Therefore,levying a carbon tax to limit the carbon emissions of the transportation industry has become the trend.Studying the carbon reduction effect of China’s transportation industry levying a carbon tax and its impact on the macro economy,to determine the optimal carbon tax collection strategy,is of great practical significance for promoting a low-carbon economy and sustainable development of the transportation industry.The research in this article can be divided into the following sections: In the first part,the impacts of carbon taxation on macroeconomic,environmental,and social welfare aspects,as well as the research achievements of general equilibrium models,are systematically reviewed.The background and literature review of the research are introduced,laying the foundation for the subsequent study.The second part explores the concepts related to carbon taxation policy and externalities theory,the double dividend theory,and the theoretical basis and modeling explanation of CGE models.Through in-depth analysis,a theoretical framework is constructed.In the third part,based on the CGE modeling theory,a transportation carbon taxation CGE model is constructed.On this basis,the2020 input-output table is used as the basis,and the 2020 social accounting matrix is compiled as the data basis for the model,referring to the "China Statistical Yearbook" and other sources.The relevant parameters of the CGE model are calibrated,and the GAMS software is used for model solving.Furthermore,different tax rates of carbon taxation policy are simulated through the model,and the impacts of different carbon taxation levels on the transportation sector and macroeconomic variables are systematically analyzed.Finally,policy recommendations and conclusions are presented.The results show that:(1)the imposition of carbon taxes has varying impacts on the output of different industrial sectors,can reduce the consumption of fossil fuels,and promote the reduction of carbon dioxide emissions.(2)Railway transportation,road passenger transportation,and road freight transportation are suitable for low-level carbon taxes,while aviation transportation,water transportation,and other transportation industries are suitable for high-level carbon taxes.(3)The imposition of carbon taxes increases government revenue but negatively affects GDP,household welfare,and business income.Finally,based on existing research conclusions,it is suggested that China should impose low-level carbon taxes in the initial stage and implement differentiated tax rates for different sectors.