Prospective of Introducing Carbon Tax in China Under the Development of Low Carbon Economy

Abstract

Low carbon economy was carried out among some of the developed countries in the early 1990s. And it has become the guidelines of economic development globally since the 21st century. From the fact that China has been the largest carbon dioxide emitter in the world, this paper evaluates the innovations and practices, which have been adopted by the developed countries to develop low carbon economy, and their strengths and weaknesses. Analyzing the theory of Pigouvian Taxes, the requirements from the world, the domestic pressure, economic impacts, international trade conflicts, management costs and some other aspects, this paper emphasizes the necessity and feasibility of introducing carbon tax in China. After discussing the advantages and disadvantages of various policies (including the carbon tax), the features of independent carbon tax and mixed carbon tax and the international experience, the article proposes some advice on levying carbon tax in China.