Effects of Introduction Carbon Tax on China's Economy
In recent years,China's carbon dioxide emissions have increased significantly,and aroused wide attention of the whole society.Carbon tax is one of the most effective economic means.Taxing on carbon dioxide at proper opportunity is not only China's response to climate change,energy consumption and emission reduction but also China's response to assuming corresponding international responsibility.According to the Chinese provincial energy consumption and the correlation coefficient of energy products,this paper accounted the carbon dioxide emissions of fossil energy products,then setting three different carbon tax rates according to the accounting data and international practice experience.Using a panel data model and the panel data of China's provinces from 1999-2007,we quantitatively analyzed the impact of carbon tax on economy,especially the effect on economic growth and energy consumption.Research shows that: ① a carbon tax would redue social output and have negative influence on economic growth.In the long run,as the gradual improvement of carbon tax rates and the tax system become perfect,this negative influence will be weakened.② a carbon tax can improve energy output efficiency,reduce the use of energy elements and cut CO2 emissions.③ increasing carbon tax rates will narrow the income distribution gap between labor and capital.Therefore,carbon taxation has obvious effects on energy saving and emission reduction.But under the restriction of China's current economic development level levying tax on carbon dioxide has great impact on Chinese economy,so it's not suitable for taxation in the short term.