Title: General Equilibrium Analysis of Carbon Tax under Different Tax Return Mechanisms
Abstract: Based on computable general equilibrium model,this paper,adopting the progressive carbon tax in production process,setting four scenarios which include unreturned carbon tax,using carbon tax income to cut factor income tax,using carbon tax income to cut individual consumption tax,using carbon tax to cut corporation consumption tax,this paper analyses the abatement effect of carbon tax and its impacts on macroeconomy and industry outputs.Simulation results show that adopting the tax neutrality principle,which means using carbon tax income to cut other kinds of tax to maintain the same amount of tax income,will do less harm to economy than simply keeping carbon tax income as general government revenue;From the perspective of carbon abatement,no tax return will be the best choice;Taking both the economy impacts and carbon emission reduction effect into account,using the carbon tax income to cut the corporate consumption tax is the optimal tax refund mechanism.Energy industries and energy-intensive industries will suffer significantly from carbon tax while labor-intensive and low-energy industries will benefit from carbon tax.If the appropriate way to introduce a carbon tax and tax return is adopted,from the long term,the introduction of carbon tax can not only play a role in energy conservation,but also help the transformation of economic development approach without doing harm to economic development,promote the development of new energy industries.
Publication Year: 2011
Publication Date: 2011-01-01
Language: en
Type: article
Access and Citation
Cited By Count: 2
AI Researcher Chatbot
Get quick answers to your questions about the article from our AI researcher chatbot