A Study On The Basic Issues Of Constructing A Carbon Tax In China

The climate crisis has become a key issue for the fate of human development in the 21 st century.Following the Paris Agreement,many countries have taken many measures to combat climate change,but the threat of climate change is still growing and further strong and effective climate responses are needed as soon as possible.Since the outbreak of the new crown pneumonia epidemic in 2019,human production activities have decreased,indirectly reducing CO2 emissions,but nearly three years have passed,and we have entered a post-epidemic era where CO2 emissions have started to rise again.The decline in food production and rising sea levels brought about by global warming have caused incalculable damage to human life and property.In order to fulfil China’s international responsibility in climate change and demonstrate the image of a responsible power,General Secretary Xi Jinping proposed that China should achieve the double carbon target in 2020,and the achievement of the double carbon target in 2021 has officially become a government task.China is currently at a critical stage of economic structural transformation,and the introduction of the dual carbon targets has pointed the way to "green water and green mountains are golden mountains" for the future development of the Chinese economy.After the end of the epidemic,the development of the economy needs a new boost.The introduction of a carbon tax is both conducive to the completion of the green industrial revolution and a requirement for achieving the dual carbon goal.In 2021,the EU explicitly proposed a carbon tariff on eight categories of imported products,nominally to prevent carbon leakage,but also with the suspicion of forcing other countries to introduce a carbon tax as soon as possible.Although this is contrary to the principle of "common but differentiated",with the imminent introduction of a carbon tariff,it seems extremely urgent to formulate relevant countermeasures as soon as possible in order to maintain the competitiveness of Chinese exports in the international market,prevent tax outflows and protect China’s tax interests.At present,China has completed a pilot carbon trading market and rolled it out nationwide.As an important measure to address carbon emissions,the carbon trading market mechanism has been limited in its implementation by factors such as high volatility in carbon prices,few active participants and narrow market coverage,resulting in unsatisfactory carbon emission reduction.Carbon tax has been discussed in China’s academic circles for a long time,and since the piloting of the carbon trading market mechanism,the enthusiasm for the discussion of carbon tax has decreased year by year.Due to the above-mentioned complex background factors,the theoretical exploration of carbon tax construction has been rejuvenated.The article starts from the legal concept of carbon tax,the necessity and feasibility of carbon tax and the specific elements of carbon tax from the legal perspective,following the logical thinking of what,why and how.The book also outlines the necessity and feasibility of a carbon tax,considers the theoretical foundations of a carbon tax,reviews the international practice of carbon taxation,and proposes ideas for the construction of a carbon tax in China.It follows a progressive approach,from theory to reality,from basic theory to international experience to concrete proposals.The first chapter defines the legal concept of carbon tax and defines the position of carbon tax.The definition of the legal concept of carbon tax is the basis of the article,which distinguishes it from other papers on finance,taxation and banking,and is the base point of the whole article.The legal concept of carbon tax is inseparable from the definition of "carbon",which should be defined as the carbon dioxide produced by the burning of fossil fuels in human production and life.In this way,the target of the carbon tax has been initially defined.By defining carbon tax,it is found that carbon tax is a behavioural tax,and that there are advantages and disadvantages of setting it as a direct tax and an indirect tax.The positioning of the carbon tax as a behavioural tax determines that the revenue from the carbon tax should not be used to raise revenue,and is related to the use of the revenue from the carbon tax.The question of whether a carbon tax should be direct or indirect also affects the elements of the taxation process.Finally,the relationship between the carbon tax and existing low carbon mechanisms is clarified.The analysis reveals that a carbon tax can co-exist with a carbon trading market in a complementary way.The inclusion of a carbon tax in an environmental tax not only requires the inclusion of carbon dioxide as a pollutant,which is academically controversial,but the territorial nature of environmental taxes inevitably conflicts with the national nature of carbon taxes.In addition,carbon taxes are fundamentally different from other legislation and do not create double taxation.Chapter 2 focuses on the need for and feasibility of a carbon tax.The introduction of a carbon tax faces the realities of the climate crisis,the double carbon target,the carbon tariff and the shortcomings of the carbon trading market.The difficulties in the introduction of a carbon tax are summarised as the construction of a specific carbon tax system,the negative impact on the economy in the short term and the international coordination issues.It is important to understand these issues in order to be able to propose targeted solutions in the subsequent process of structuring the carbon tax.Although there is resistance to the introduction of a carbon tax,there is also a need to change the mode of economic development and to achieve the goal of double carbon emissions.The current carbon tax is also feasible: there is a rich theoretical foundation and sufficient overseas practice to provide reference;legislation on green taxation systems such as environmental taxes can be referred to;and the interface between carbon taxes and carbon tariffs in terms of tax credits can also ensure China’s economic interests.The third chapter is built on the basis of the above theories.Through the mastery of the above theories,the different paths of carbon tax design from a jurisprudential perspective are traded off,and then the concept of carbon tax introduction in China is proposed.This includes the legislative purpose of a carbon tax,the legislative principles and the path to its construction,the design of tax elements,the attribution and use of revenues and the development of a multilateral carbon tax system.The summary in Chapter 3makes the thread between the first two chapters smooth and clear,forming an overall cascade.