Would carbon tax be an effective policy tool to reduce carbon emission in China? Policies simulation analysis based on a CGE model

2021 ◽  
pp. 1-20
Author(s):  
Jin Xu ◽  
Weixian Wei
Keyword(s):  
Carbon Emission ◽  
Simulation Analysis ◽  
Carbon Tax ◽  
Cge Model ◽  
Policy Tool ◽  
Effective Policy ◽  
Reduce Carbon Emission

A factorial CGE model for analyzing the impacts of stepped carbon tax on Chinese economy and carbon emission

2021 ◽  
Vol 759 ◽  
pp. 143512
Author(s):  
Yupeng Fu ◽  
Guohe Huang ◽  
Lirong Liu ◽  
Mengyu Zhai
Keyword(s):  
Carbon Emission ◽  
Carbon Tax ◽  
Chinese Economy ◽  
Cge Model

scholarly journals Green Innovation Mode under Carbon Tax and Innovation Subsidy: An Evolutionary Game Analysis for Portfolio Policies

2020 ◽  
Vol 12 (4) ◽  
pp. 1385 ◽  
Author(s):  
Shengzhong Zhang ◽  
Yingmin Yu ◽  
Qihong Zhu ◽  
Chun Martin Qiu ◽  
Aixuan Tian
Keyword(s):  
Carbon Emission ◽  
New Technologies ◽  
Carbon Tax ◽  
Early Stage ◽  
Evolutionary Game ◽  
Green Innovation ◽  
Tax Rate ◽  
Reduce Carbon Emission ◽  
The Government ◽  
Innovation Mode

Previous literature has shown that manufacturers’ choices between radical and incremental green innovation modes can greatly impact the tradeoff between industry growth and carbon emission reduction. Yet, how the government can motivate manufacturers to implement radical green innovations to reduce carbon emission is unclear. In this paper, the researchers construct an evolutionary game model to analyze the joint impacts of carbon tax and innovation subsidy on manufacturers’ choices of green innovation mode. We derive the conditions for manufacturers’ stable strategies. Based on those results, we find that four factors—carbon tax, innovation subsidy, consumer green preference, and manufacturers’ capabilities of absorbing and adopting new technologies—may facilitate the choice of radical innovation. Furthermore, we conduct numerical simulations to verify the theoretical results, and further illustrate how the synergy of carbon tax rate and subsidy level affects the evolution of the green innovation mode choices. Specifically, we demonstrate the superiority of portfolio policy in the early stage of green innovation over single policy. In contrast, in the later stage, it is carbon tax but not innovation subsidy that remains effective. We discuss the insights for the government to formulate appropriate environmental policies to effectively promote the adoption of green innovation and reduce carbon emission.

Research on the Relation of Carbon Tax on Carbon Emission and Economic Development in China

2013 ◽  
Vol 807-809 ◽  
pp. 723-727
Author(s):  
Zheng Shun Ruan ◽  
Ai Hua Luo ◽  
Hong Yao
Keyword(s):  
Economic Development ◽  
Carbon Emission ◽  
Carbon Tax ◽  
Carbon Intensity ◽  
Cge Model ◽  
Energy Technology ◽  
Carbon Reduction ◽  
Energy Environment ◽  
Carbon Taxation ◽  
Dynamic Cge

In this paper, a model of energy-environment-economic model based on dynamic CGE model is constructed after the linkage of dynamic CGE model and energy technology model, the choices of policy of energy conservation and carbon reduction to deal with the change of climate are analysed. Besides the improvement of technology of energy, if carbon taxation is employed, the goal to reduce its carbon intensity by 40% by 2020 compared with 2005 need to levy a tax of 60yuan per tonne, the simulations of this tax to carbon reduction, economic and income of residents are analysed under different circumstances, the results shows that there is a great impact on income of residents and reduction-intensive industries with a higher tax burden level.

The effects of Paris agreements on Korean economy and trade analyzed by the computational general equilibrium method considering firm’s heterogeneity

2018 ◽  
Vol 22 (3) ◽  
pp. 280-305
Author(s):  
Jae-whak Roh ◽  
Hyunjae Kim
Keyword(s):  
General Equilibrium ◽  
Economic Impact ◽  
Computable General Equilibrium ◽  
Carbon Emission ◽  
Electricity Price ◽  
Cge Model ◽  
Content Type ◽  
Korean Economy ◽  
Reduce Carbon Emission ◽  
Paris Convention

Purpose During the Paris Convention, Korean Government made commitment to curb carbon emission by 37 percent by the year of 2030. Since then there has been constant debate, both in media and academia, as to whether attempts to reduce carbon emission would spell the concomitant economic slowdown. The purpose of this paper is to build a Computable General Equilibrium (CGE) model to see the effects of emission decrease on Korea economy. Design/methodology/approach To answer the above question, we build a comprehensive framework to gauge the economic impact of Paris Convention through the lens of Computable General Equilibrium (CGE) model using Armington and Melitz model. Findings Contrary to conventional wisdom, Korea’s economic performance in terms of welfare remains robust when the carbon emission is reduced. Broadly speaking, Korea’s welfare does not contract significantly in part due to expansion at the export market. For instance, the energy intensive industry (EIT) is affected most directly from the Paris Convention commitment and yet it experiences growth in export. On the contrary, the authors find that the general economic impact on Korea’s output is negative. The additional experiment using Melitz model shows that as the carbon reduction is enforced, both the number and the average productivity of the exporting firms increase in the EIT sector, which the authors refer in the paper as the “Melitz Effect.” Practical implications This paper shows that what can be occurred in Korean industries by emission decrease commitment. Social implications One byproduct from restricting carbon emission is the surge in the electricity price. This is due to the fact that industries have to shift away from traditional fuels such as oil to electricity for energy. Therefore the authors propose that industrial policies aimed at balancing electricity price should accompany the plan to reduce carbon emission. Originality/value For Korean economy, the effects of emission reduction is researched using Armington and Melitz model at the same time. Especially, this is the first research case using the Melitz model in this Korean topic.

Cap and Trade Versus Carbon Tax: An Analysis Based on a CGE Model

2021 ◽  
Author(s):  
Jin-Feng Zhou ◽  
Dan Wu ◽  
Wei Chen
Keyword(s):  
Carbon Tax ◽  
Cge Model ◽  
Cap And Trade

scholarly journals To Trade or Not To Trade? Criteria for Applying Cap and Trade

2001 ◽  
Vol 1 ◽  
pp. 953-957 ◽  
Author(s):  
Stephanie Benkovic ◽  
Joseph Kruger
Keyword(s):  
Emissions Trading ◽  
Environmental Problem ◽  
Cost Effective ◽  
Cap And Trade ◽  
Policy Tool ◽  
Effective Manner ◽  
Effective Policy ◽  
Foreign Governments ◽  
Trading Program ◽  
The U.S

The use of emissions trading (cap and trade) is gaining worldwide recognition as an extremely effective policy tool. The U.S. Sulfur Dioxide (SO2) Emissions Trading Program has achieved an unprecedented level of environmental protection in a cost-effective manner. The successful results of the program have led domestic and foreign governments to consider the application of cap and trade to address other air quality issues. Certain analyses are particularly important in determining whether or not cap and trade is an appropriate policy tool. This paper offers a set of questions that can be used as criteria for determining whether or not cap and trade is the preferred policy approach to an environmental problem.

scholarly journals Complete resource pooling of a load-balancing policy for a network of battery swapping stations

2021 ◽  
Author(s):  
Fiona Sloothaak ◽  
James Cruise ◽  
Seva Shneer ◽  
Maria Vlasiou ◽  
Bert Zwart
Keyword(s):  
Carbon Emission ◽  
Queueing Network ◽  
Service Levels ◽  
Resource Pooling ◽  
Transportation Sector ◽  
Single Station ◽  
Optimal Resource ◽  
Promising Solution ◽  
Reduce Carbon Emission

AbstractTo reduce carbon emission in the transportation sector, there is currently a steady move taking place to an electrified transportation system. This brings about various issues for which a promising solution involves the construction and operation of a battery swapping infrastructure rather than in-vehicle charging of batteries. In this paper, we study a closed Markovian queueing network that allows for spare batteries under a dynamic arrival policy. We propose a provisioning rule for the capacity levels and show that these lead to near-optimal resource utilization, while guaranteeing good quality-of-service levels for electric vehicle users. Key in the derivations is to prove a state-space collapse result, which in turn implies that performance levels are as good as if there would have been a single station with an aggregated number of resources, thus achieving complete resource pooling.

EU Sanctions on Belarus as an Effective Policy Tool

2021 ◽  
Author(s):  
Anders Aslund ◽  
Jan Hagemejer
Keyword(s):  
Policy Tool ◽  
Effective Policy

scholarly journals Consolidated Climate Markets Mechanism Analysis—Case Studies of China, Japan, and Taiwan

2019 ◽  
Vol 11 (22) ◽  
pp. 6478
Author(s):  
Jules Chuang ◽  
Hsing-Lung Lien ◽  
Akemi Kokubo Roche ◽  
Pei-Hsuan Liao ◽  
Walter Den
Keyword(s):  
Renewable Energy ◽  
Case Studies ◽  
Financial Burden ◽  
Ghg Emissions ◽  
Mechanism Analysis ◽  
Policy Tool ◽  
Ghg Reduction ◽  
Effective Policy ◽  
Trading Mechanisms ◽  
Primary Instrument

The post-Kyoto Protocol era has seen a transition to focus on the development of a renewable energy (RE) market as a primary instrument to reduce greenhouse gas (GHG) emissions worldwide. This paper analyses the development of GHG reduction and RE market in China, Japan, and Taiwan that are geographically proximate but socioeconomically diverse, and each plays a different but significant role in the world’s economy. By deploying a consolidated model incorporating the key components of market drivers underlying the goal of achieving GHG reduction, we threaded through the policy- and market-instruments implemented for each of the case studies over the past 20 years using the model. One commonality is that subsidiary schemes in the form of feed-in tariffs have served as an effective policy tool to boost the growth of renewable energy installations, though the worsening financial burden renders this path unsustainable. Over-reliance on feed-in-tariff schemes may have also impeded the liberation of an energy market pivotal to the success of elevating RE portfolio through trading mechanisms. What followed were the implementations of renewable energy certificate (REC) systems that have experienced various roadblocks leading to failures of the certificate market. By understanding the paths engaged in each of the cases, a conceptualized strategy depicted by the consolidated model is proposed to show the links between a renewable market and a carbon market. The framework would expedite the trading of RECs and carbon credits to accelerate the attainment of GHG emission reduction goals.

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