Simulation analysis of Chinese new-type urbanization policy in mineral resource abundant regions based on the CGE model

Abstract

The prominent contradictions of economy, resources and environment have formed a great obstacle to the new-type urbanization (NU) in mineral resource abundant regions (MRARs). However, the current NU policy system in MRARs is not able to meet the requirement of NU in different types of MRARs. Thus, to exactly study the impacts of different policies on different types of MRARs and the differences in the impacts and effectively improve the policy system, this article builds a NU computable general equilibrium model for MRARs based on general equilibrium theory. Five modules are constructed for the economic system operation in MRARs, four policy variables, such as environmental protection tax (EPT), resource tax (RT), government transfer payment (GTP) to residents, and government R&D investment, are introduced, and eighteen scenarios are set up to explore policy impact on NU in different types of MRARs. The simulation results indicate that: (1) The impact of EPT on conserving energy and reducing emission is more obvious in MRARs with poor social and economic foundations. (2) The increase of RT rate provides a comparative advantage for resource-dependent industries in resource-exporting regions. (3) The effect of GTP on the realization of common prosperity is influenced by regional social and economic foundation differences. (4) The impact of government R&D investment on industrial structure adjustment and optimization is not obvious in the short term. Finally, targeted policy recommendations are proposed to promote NU in MRARs.