Optimal Tax Policy Based on Endogenous Growth Model of Low Carbon Economy

Abstract

Low carbon economy is the trend of world economic development with the Characteristics of low energy consumption,low pollution,low emission based on economic model,Low carbon economy is a great progress of human society after the agricultural civilization, industrial civilization. Low carbon production has a certain influence, when model building set, low carbon consumers, low carbon resource producers and government can be considered. In this paper, we use the endogenous growth model to build production function and utility function, By solving it, we concludes that when the government stable tax policy has been implemented, low carbon consumers have a unique optimal capital stock path, along this path it can promote the steady and optimal economic growth, we also discuss the tax policy influence on low carbon economic growth under the condition of market equilibrium, and get know how to adjust the tax rate to achieve the optimal low-carbon economic growth.