Abstract
The environmental issue is a significant challenge that China faces in leading the development of the green economy. In this context, reducing CO2 emissions is the key to combatting this problem. Taking the 2017 social accounting matrix (SAM) as the database and combing macroeconomic parameters from previous studies, this article constructed the environmentally computable general equilibrium (CGE) model as an analytical model to analyze the economic–environmental–energy impacts of recycling carbon tax with technological progress in clean electricity. We found that when the rate of clean electricity technological progress reaches 10%, the carbon recycling tax that reduces corporate income taxes will achieve a triple dividend of the carbon tax, namely, promoting economic development, reducing carbon emissions, and improving social welfare. In the meantime, on the basis of carbon tax policies that raise the price of fossil energy, clean electricity technological progress will help accelerate the transformation of electricity structure, reduce the proportion of thermal power generation, and better promote emission reduction. In addition, due to the high carbon emission coefficient, coal contributes significantly to carbon emission reduction. Therefore, China should implement a carbon tax recycling policy supplemented by the progress of clean power technology as soon as possible to better promote green economy development.
Highlights
Green and sustainable development is a core driver of economic development worldwide
Note: RTP stands for the rate of technological progress for the clean power sectors; GDP stands for nominal GDP; RGDP stands for real GDP; TCOEI stands for total carbon dioxide emission intensity; EV stands for social welfare; YTH stands for the resident income; YTE stands for the corporate income
A carbon tax recovery policy supplemented by technological progress in the clean power sector can promote economic growth, improve social welfare, and reduce the intensity of carbon dioxide emissions, realizing the triple dividend of the carbon tax
Summary
Green and sustainable development is a core driver of economic development worldwide. The operation of a carbon tax policy causes the price of related energy to rise, affecting corporate investment and household consumption, which is not conducive to economic growth or the improvement of social welfare. The analysis does not focus on technological progress in the clean electricity sector, applying the same rate of technological progress to all sectors and making it difficult to distinguish the impact of technological progress on specific industries In this regard, this article constructs an environmental CGE model that includes the subdivision of power sectors, combining the carbon tax recycling policy with the progress of clean electricity technology for research, intending to explore the carbon tax’s emission reduction and economic growth effect. The last section summarizes the conclusions drawn by the model and puts forward relatively reasonable policy recommendations to provide relevant policy references for national policymakers
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