Climate Mitigation in China: Which Policies Are Most Effective?

Ian Parry, Baoping Shang, Philippe Wingender, Nate Vernon-Lin and Tarun Narasimhan

No 2016/148, IMF Working Papers from International Monetary Fund

Abstract: For the 2015 Paris Agreement on climate change, China pledged to reduce the carbon dioxide (CO2) intensity of GDP by 60–65 percent below 2005 levels by 2030. This paper develops a practical spreadsheet tool for evaluating a wide range of national level fiscal and regulatory policy options for reducing CO2 emissions in China in terms of their impacts on emissions, revenue, premature deaths from local air pollution, household and industry groups, and overall economic welfare. By far, carbon and coal taxes are the most effective policies for meeting environmental and fiscal objectives as they comprehensively cover emissions and have the largest tax base.

Keywords: WP; fuel economy; processing plant; Paris Agreement; carbon tax; China; air pollution; coal tax; emissions trading; incidence; welfare effects; generation cost; emissions price trajectory; aggregate welfare costs estimate; elasticity scenario; consumption rate; energy price; economic welfare cost; renewables price; price projection; generation cost elasticity; income elasticity; Greenhouse gas emissions; Non-renewable resources; Consumption; Fuel prices; Global (search for similar items in EconPapers)
Pages: 71
Date: 2016-07-25
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Citations: View citations in EconPapers (16)

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