Does a Recycling Carbon Tax with Technological Progress in Clean Electricity Drive the Green Economy?

Weijiang Liu, Min Liu, Tingting Liu, Yangyang Li and Yizhe Hao
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Weijiang Liu: Center for Quantitative Economics, Jilin University, Changchun 130012, China
Min Liu: Business School, Jilin University, Changchun 130012, China
Tingting Liu: Business School, Jilin University, Changchun 130012, China
Yangyang Li: Business School, Jilin University, Changchun 130012, China
Yizhe Hao: Business School, Jilin University, Changchun 130012, China

IJERPH, 2022, vol. 19, issue 3, 1-18

Abstract: The environmental issue is a significant challenge that China faces in leading the development of the green economy. In this context, reducing CO 2 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.

Keywords: carbon tax recycling policy; green economy; technological progress; CGE model; triple dividend; carbon emissions (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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