The Impact Of Carbon Emission Constraints On Economics In China Based On DSGE

Energy,material and information are the three pillars of modern economic and social development.Since the beginning of mankind,energy has been closely integrated with the production and life of human society.As the material basis of economic development,energy has greatly promoted the progress and development of human civilization.From a current global perspective,energy is also an important cornerstone of the economic and social development of various countries,so almost all countries put the strategy of energy development in a high position.Since the reform and opening up,China's economy has grown rapidly.At present,China's total economic output has ranked second in the world.This remarkable economic achievement is inseparable from the support of energy.However,a large amount of energy consumption brings about rapid economic growth,but also worsens the environment,increases carbon emissions,and leads to the greenhouse effect.Climate change threatens the survival of all mankind and is related to human destiny.Therefore,controlling energy consumption and reducing carbon dioxide emissions have become problems faced by countries all over the world.The major countries in the world have signed agreements such as the Kyoto Protocol and the Paris Agreement to protect human beings from the threat of climate change and slow down global warming.The issue has become a global consensus.In 2018,China promoted the establishment of a national carbon trading market,which will also greatly promote China's carbon emission reduction process.Since China's energy consumption is still dominated by fossil energy,increasing carbon emission reduction will inevitably lead to an increase in economic and social operating costs,which may inhibit economic development.On the other hand,carbon emission reduction is also likely to promote technological innovation and the development of new industries,thereby promoting economic growth.It can be said that the strengthening of carbon emission reduction constraints is a double-edged sword for economic development.This paper mainly studies the simulation of China's economic development under the background of carbon emission constraint.The dynamic stochastic general equilibrium model(DSGE)was used to construct the equilibrium equations,including four departments: family,enterprise,government and environmental protection.The utility function of consumption,leisure and environmental quality was introduced into the family sector.The enterprise sector takes the Cobb-Douglas as the production function of the enterprise,and assumes that the return to scale remains unchanged.In addition,the company will also release pollutants into the natural environment while organizing capital and labor to carry out production activities.Therefore,this paper assumes that carbon emissions are positively correlated with output.Government departments bear some responsibility for the pollution caused by enterprises' carbon emissions,so the government is also included.Carbon emission is an environmental issue,therefore,this paper introduces the environmental department to conduct a comprehensive study.On the basis of complete model construction,certain carbon emission restraint policies will be given in the simulation process,including environmental technology impact and carbon emission tax rate shock,it can be observed that the change trend of China's output,consumption,investment,employment and environmental quality.Finally,corresponding policy suggestions are put forward to deal with the carbon emission constraint based on the analysis of the simulation results,which provides a reference for China's efforts to achieve a win-win situation of carbon emission reduction and economic growth.The innovations of this paper are mainly reflected in the following two points: the first is in the mechanism research.It pays attention to the effect of carbon emissions constraints on China's economy from the multidimensional perspective,thus the new analysis framework was built: carbon emissions constraints?family and enterprise decision-making behavior adjustment?the amount of output,consumption,investment and employment?economic growth effect.This bottom-up mechanism analysis is more close to the actual economic operation and can form more practical policy value,and this research perspective runs through the two major themes of mechanism analysis and effect measurement in this paper.The second is in the application of methods.On the one hand,this paper strengthens the collation and analysis of the original data.It is not blindly using the data in the yearbook.On the other hand,the invariant elastic coefficient in the DSGE model is reasonably set,which makes the simulation effect of the model better.