Coal Taxation Reform in China and its Distributional Effect on Residential Consumers

Ping Qin, Xiao-Bing Zhang and Lunyu Xie ()

No 19-11, EfD Discussion Paper from Environment for Development, University of Gothenburg

Abstract: There is an ongoing reform in coal taxation in China, from a quantity-based to a pricebased approach. While the coal tax could play an important role in resource conservation and air pollution reduction, its distributional effect is not well studied. This paper investigates the distributional effect of China’s coal taxes on households before and after the reform. We find that both the quantity-based and price-based coal taxes are regressive for residential consumers in China, that rural poor households are most affected, and that the coal taxation reform slightly reduced the regressivity of the coal tax. By simulation, we also find that the regressivity of the coal tax can be further improved if the tax rate scheme is set appropriately.

Keywords: coal tax; distributional effect; price-based tax; quantity-based tax (search for similar items in EconPapers)
JEL-codes: C15 H23 O13 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2019-05-01
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.efdinitiative.org/sites/default/files/ ... -11_final_may_14.pdf Full text (application/pdf)

Related works:
Journal Article: Coal taxation reform in China and its distributional effects on residential consumers (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hhs:gunefd:2019_011

Access Statistics for this paper

More papers in EfD Discussion Paper from Environment for Development, University of Gothenburg
Bibliographic data for series maintained by Franklin Amuakwa-Mensah ().