Abstract
Based on a series of theoretical study of Pigou tax principle, polluter pays principle (PPP), double dividend theory, tax incidence and tax burden transfer, carbon tax excess burden, and the Laffer curve, this article determines the design of essential elements involved in carbon tax system, including the scope of carbon tax, the objects of Taxation, the tax payer, the tax link, the tax rate, and the tax preference, etc. Meanwhile, some principles are proposed when implementing strategies, that is, the principle of combination of efficiency and equity, the principle of tax rate dynamic adjustment, and the principle of tax neutrality.
Highlights
As noted in the 19th CPC Congress Report, great efforts should be focused on addressing outstanding environmental issues, including “continuing air pollution control actions, and winning the Battle of the Blue Sky”, “upgrading pollution emission standards”, “strengthening the liability of polluters” and “inflicting severe punishment”, and the like
Based on a series of theoretical study of Pigou tax principle, polluter pays principle (PPP), double dividend theory, tax incidence and tax burden transfer, carbon tax excess burden, and the Laffer curve, this article determines the design of essential elements involved in carbon tax system, including the scope of carbon tax, the objects of Taxation, the tax payer, the tax link, the tax rate, and the tax preference, etc
The results showed that tax preferential policies should be implemented to avoid excessive impact on the economy in the early stage, and the principle of “common and differentiated responsibilities” and “respective capabilities” should be followed in determination of carbon tax rates
Summary
As noted in the 19th CPC Congress Report, great efforts should be focused on addressing outstanding environmental issues, including “continuing air pollution control actions, and winning the Battle of the Blue Sky”, “upgrading pollution emission standards”, “strengthening the liability of polluters” and “inflicting severe punishment”, and the like. The Atmospheric pollutants involved in environmental tax include 44 toxic gases, such as SO2, NOx, CO and Cl2 while CO2 is excluded though it causes the greenhouse effect For this reason, the reform of “tax for fees” cannot be applied to CO2 and carbon-tax is given special concern as an independent tax choice. Xu Yingzhi and Zhou Xiuli [8], strictly following the principle of “sharing between producers and consumers”, simulated the optimal carbon-tax under different constraints bu using multi-objective input-output model. They compared the effects of carbon-tax collection on CO2 emissions, total output level and energy consumption at different tax rates. By referring to studies both at home and abroad, the authors analyze the carbon-tax design in theory, followed by its elements’ design, and suggest implementation strategies
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