Analysis of the Influence of the Tax Cuts and Jobs Act on Electricity Demand in China and the United States: based on GTAP-Dyn Model

Abstract

The GTAP-Dyn model was used to study the impact of the tax cuts and jobs act on the economic structure and electricity demand in China and the United States. According to the main content of the Tax Cuts and Jobs Act, the main products of trade friction, and the major countries participating in the tax cuts, three policy scenarios including US tax reform, trade barriers, and competitive tax cuts were designed. The results show that Countries competing for tax reduction benefit China’s economic growth, industrial structure optimization and electricity intensity enhancement.