Comparison Of Three Kinds Of Carbon Emission Reduction Tools

With the rapid development of the world economy, the global carbon dioxide emissions continue to increase. In2013, the world’s carbon dioxide emissions reached36billion tons. In recent years, the economy of developing countries and emerging economies like China has developed continuously and rapidly and energy demand has grown strongly, so carbon emissions’increase is inevitable. In2006, China’s carbon dioxide emissions were more than six billion tons and China became the world’s largest emitter of carbon dioxide. China is facing unprecedented international pressure in terms of the pressure of carbon dioxide gas emissions reduction. However, the carbon-intensive products produced in China and such other developing countries are mostly exported, instead of being consumed in their own countries. So, who should bear the responsibility for emissions reduction and should bear how much are the focus of carbon reduction. In addition, countries implementing carbon reduction measures attempt to take punitive measures to countries which have larger carbon emissions like China to reduce carbon emissions. In January2012, carbon tariff policy had been officially implemented. Countries having larger carbon emissions are facing external threat of carbon tariff, so, they need to formulate relevant policies to deal with it. Levying carbon tax can reduce carbon dioxide emissions and reducing energy consumption. When countries having larger carbon emissions face those different strategies, which choice should be made is worthy of careful study.This paper uses the two-country CGE model (computable general equilibrium model) and the three-country CGE model to analyze theoretically and simulate numerically mainly studying three carbon reduction tools. They are carbon tariff, carbon tariff union and carbon tax. The main findings are as follows:first, carbon tariff and carbon tariff union both can play a role in reducing energy demand and carbon emissions, and carbon tax can also play a role in reducing energy demand and carbon emissions. It proves the existence of negative carbon leakage theoretically. Second, the effect of country having larger carbon emissions levying carbon tax on energy use is more obvious. The effect of the carbon tariff alliance levying carbon tariff on the country with high carbon emissions is not obvious because of the larger rebound effect. Third, carbon tariff has obvious effect on the country which has relatively larger energy demand, lower energy use efficiency and smaller price elasticity of the demand of energy intensive products. Countries having larger carbon emissions levying carbon tax on energy use have obvious effect on the country which has relatively larger price elasticity of the demand of energy intensive products and greater energy demand industry.