Research On Carbon Tax Rate And Welfare Effects In China

Energy is one of the most important bases of human survival.It is also an important factor which can drive the global economic development.The excessive consumption of energy can lead to environmental pollution,and many countries have begun to pay attention on low carbon economic.Different country has its own environmental policy on how to control carbon emissions problem.Generally,the basic principle is the Polluter Pays Principle.Some developed countries take carbon tax,carbon tariffs,aviation carbon tax and other economic means to control carbon emissions.Implementation of a carbon tax is an effective means of reducing carbon emission in west countries.Carbon tariff and aviation carbon tax will damp economic growth and protect the economic of the developed countries.The economic development is growing so quickly that the energy consumption on production and life is rising quickly too.There will be more and more carbon emissions,and it is urgent for emission reduction for our country.Based on these analyses,this study carried out as follows:First,the analysis of foreign carbon tax and welfare effect.We analyze the differences and similarities between carbon tax and environmental tax,energy tax,and analyze the origin of the carbon tax and its theory basis.There is a lot of debate about carbon tax,such as whether to take carbon tax,the carbon tax is reasonable,and there also have many debates on regressive or nonregressive for the economic growth and living standards.We study on the carbon tax items,tax rate,and the tax basis of foreign carbon tax,which can provide the useful reference role to our country in implement on carbon tax.Second,the design principle and accounting constraints of carbon tax.According to the practical experience by western countries,we found that the implyment of carbon tax in our country may take a surprised effect for reduce the carbon.We analyzed the carbon tax system in China,which conclude the tax base,tax rate,tax principle,and the constraints of carbon tax.According to economic theory,we also analyzed the theoretical basis of carbon tax rate.Third,the design of carbon tax rate and welfare effect of producer.The paper predicted output and carbon emissions in the future,and give the constraints of carbon tax rate by quantitative approach.According to the energy consumption,we found that the higher energy consumption industries the higher influence by carbon tax.Fourth,the analysis of the welfare effect of different carbon tax rate on consumers.The paper constructed the utility function and constraints of the residents by the residential energy consumption and income distribution,analyzed the effect of different carbontax rate on the rural and urban residents.We found that the urban residents who have the higher income will accept the high energy price which contains the carbon tax.But the carbon will make the price of energy products increased,which will lead to the decline in incomes and wages.That give rural residents direct monetary subsidies can not increase the use of clean energy,but reduction in energy products' price can avoid the economic losses.Fifth,the analysis of the welfare effect of different carbon tax rate on macro economy.The paper analyzed the influence of carbon tax on the macro economy in China.This paper also studied the relationship between economic growth,environmental pollution and carbon tax in China by spatial econometrics panel.The results show that only the industrial or economically developed areas or can levying carbon tax.