Research On Carbon Tax Design In China

Global warming has become a common problem experienced by all countries in the world. In order to reduce carbon dioxide emissions and fossil energy consumption,it is necessary for China to choose carbon tax, an economical means to deal with the environment. Implementation of carbon tax policy not only effectively reduce greenhouse gas emissions, but also improve the efficiency of energy utilization,optimize the energy consumption structure, promote the development of the third industry and upgrading of the industrial structure. Carbon tax policy can help to achieve the goal of energy conservation and emissions reduction and sustainable development in China.The carbon tax policy research is very meaningful. First of all, many relevant domestic and international conferences have discussed on the impact of environmental policy on economy and society in detail. Second, the relevant foreign experience has proved that the carbon tax is effective. In the end, it is also very important that the environment tax is a very crucial economical means of the environment and resource policies.Carbon tax collection has numerous economic theories as foundations. First of all, a tax on environmental pollutants can internalize the negative externality of environment. Second, it is necessary for the public sector to tax resources and the environment with scarcity. Third, the public goods theory of public economics also can provide a powerful theory basis for levying environment tax. Fourth, the theory of sustainable development makes the scope of the theory basis of levying environment tax extended. Finally, "Double Dividend" theory has been put forward,and this theory strengthens the economic significance of levying environment tax.As the consciousness of protecting natural resources and the environment is increasing, many countries choose the carbon tax to reduce the use of fossil fuel and carbon dioxide emissions, protecting the resources and environment. Therefore, in foreign countries,related theoretical basis and practical application of carbon tax policy have been fully developed and improved. In recent years, China’s environmental tax reform is gradually drawing the attention of people. Domestic scholars have made a lot of in-depth studies on the environment tax theory and empirical analysis. Empirical research models are extending and developing. Analysis tools such as CGE models are, more and more widely, used in applied research on China’s energy and environmental problems. The theoretical circle has made a lot of research results, and put forward many valuable suggestions.I analyzed some related issues of externality and pigovian tax through partial equilibrium and general equilibrium. And I also deduced the optimal and sub-optimal tax situation under General equilibrium. Then I considered the terms of formation of the "Double Dividend" under the theoretical framework.I also introduced related reforms of the environmental tax system in developed countries. Then through the international experience of carbon tax policy, I summarized the characteristics of the carbon tax in developed countries, then I recounted the enlightenment for China’s implementation of carbon tax policy, the future development trend of carbon tax and international tax cooperation.On the basis of theoretical analysis and practical experience, I made the design on carbon tax policy of China, and through the CGE model to simulate the implementation of carbon tax policy, I analyzed the influences on carbon emissions,energy consumption demand, the industrial sector production and macro-economy.The results show that with the gradual improvement of the carbon tax rate,carbon dioxide emissions will gradually decrease; valorem tax rates for fossil energy will gradually improve, fossil energy consumption will reduce yet clean energy consumption will increase; the outputs of most Industrial Sectors will fall, yet outputs of clean energy sector and third industry will rise; Under the condition of tax neutral,reducing the residents’ income tax can achieve "Double Dividend" of carbon tax.