CGE Simulation for Levying Carbon Tax in China and International Experience of Levying Carbon Tax

Levying carbon tax is conducive to reducing carbon dioxide emissions and protecting the environment. The author firstly reviewed some relevant empirical studies on carbon tax both home and abroad, and then established the CGE model and simulated levying carbon tax in China. The study found that levying carbon tax would have little impact on China's economy: in a short-term, China's GDP might decrease by 0.51%, while in a long-term it might decrease by 0.08%; however, the carbon dioxide emissions would be substantially reduced. Meanwhile, levying carbon tax has some negative impact on the output of each industry in the very economic structure; of this, the mineral extractive industries would be influenced the most. Then the author summarized experience of levying carbon tax in foreign countries.