4.5 Article

Effect of carbon tax on the industrial competitiveness of Chongqing, China

期刊

ENERGY FOR SUSTAINABLE DEVELOPMENT
卷 47, 期 -, 页码 114-123

出版社

ELSEVIER
DOI: 10.1016/j.esd.2018.09.003

关键词

Carbon tax; Industrial competitiveness; Carbon emission reduction; IMED vertical bar CGE model; Chongqing, China

资金

  1. National Natural Science Foundation of China [51861135102, 71704005, 71690241, 71690245]
  2. special fund of the State Key Joint Laboratory of Environment Simulation and Pollution Control, China [18K01ESPCP]

向作者/读者索取更多资源

As one of the most cost-effective means of carbon emission reduction, carbon tax has attracted considerable attention from economists and international organizations. This study applied a two-region dynamic computable general equilibrium (CGE) model to discover how differentiated carbon taxes among regions would affect the competitiveness of local industries, taking an inland city-Chongqing in China-as an example. The results show that when carbon tax is implemented, it can effectively decrease carbon emissions and intensity, and achieve China's Nationally Determined Contribution target by 2030. It will, however, also have varied effects on the macroeconomy, with GDP losses of 1.54% to 2.5%. Meanwhile, industrial competitiveness in Chongqing will be affected heterogeneously. When Chongqing's tax level is higher than the rest of China, agriculture, textile, food, transport equipment, machinery, and electronics sectors will benefit from increased output activity. Meanwhile, paper, chemicals, nonmetal production, and metal smelting will suffer output losses. Such varied sectoral effects can be explained by two effects-price effect and scale effect-in three markets: domestic, interprovincial, and foreign. Finally, based on China's practical situation, this paper makes policy suggestions that could mitigate the negative effects of carbon tax. (C) 2018 International Energy Initiative. Published by Elsevier Inc. All rights reserved.

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