A Study On The Effects Of Carbon Tax

In the context of climate change,carbon tax is considered to be one of the effective tools to reduce carbon emissions.For this reason,more and more countries try to introduce carbon tax.However,a series of negative effects caused by carbon tax,especially in economic terms,make many countries behaving cautious when try to do it.This dissertation analyzes the possible effects of carbon tax on energy-saving,economic growth and residential welfare in China,then puts forward policy recommendations,which aim at mitigating the negative effects caused by carbon tax in some aspects.These recommendations can provide reference for carbon tax policy-making.This dissertation’s main part is consisted of four sections:First,elaborates the present situation of energy consumption in China and the pressure of cutting CO2 emissions that China is facing,sums up the concept of carbon tax and the theoretical basis of carbon taxation.Then,divides the effects of carbon tax into energy-saving and emission-reduction effect,economic effect and welfare effect,and analyzes them theoretically.Second,calculates the energy-saving and emission-reduction effect,economic effect and welfare effect under the circumstances that China has introduced carbon tax through constructing econometric model and using a variety of tools such as input-output table.The results show that:(1)Carbon tax has a good effect on energy-saving and emission-reduction in China,and the effect becomes increasingly obvious when the tax rate raises.In addition,as the energy price increases,the carbon tax rate should also be raised to avoid its effect on emission-reduction decreases.(2)Carbon tax’s economic effect differs in sectors and times,but on the whole,it has less effect on national economic growth when the carbon tax rate is between 10-50 yuan/t CO2.And if take enterprises’ behavioral change when face carbon tax and several temporary tax preferences into consideration,such as enterprises will try to expedite the technical innovation or search for alternative energy sources because of the rise of cost caused by carbon taxation and implementing lower tax rate for the sectors which are affected greatly,then the impact of carbon tax on China’s economy will be further weakened.(3)Carbon tax is regressive,but when the carbon tax rate is 30 yuan/t CO2,the welfare loss that caused by carbon tax is less on the whole.And the rural households’ welfare loss is greater than the urban households viewing from the carbon tax revenue point.Third,introduces carbon tax’s international practice from its levy scope,tax rate,tax preferences,tax use and effect,then sums up the successful experience according to the common features of carbon tax systems that are implemented abroad.Fourth,puts forward policy recommendations according to the previous calculation results and international practice introduction.These recommendations include:Before introducing carbon tax,government should do the propaganda work well to raise public’s environmental protection and tax awareness so as to pave the way for carbon taxation;Introduces carbon tax in low tax rate,then raises it gradually;The carbon tax rate should differ in fossil fuels and sectors;The preferential measures should take incentive as the principal thing while protecting some sectors from harm the second;Sticks to the principle of tax neutrality and uses the carbon tax revenue reasonably.