Abstract
Abstract Among all the emission reduction measures, carbon tax is recognized as the most effective way to protect our climate. That is why the Chinese government has recently taken it as a tax reform direction. In the current economic analysis, the design of carbon tax is mostly based on the target to maximize the efficiency. However, based on the theory of tax system optimization, we should also consider other policy objectives, such as equity, revenue and cost, and then balance different objectives to achieve the suboptimum reform of carbon tax system in China.
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