 The economic impact of carbon pricing with regulated electricity prices in China—An application of a computable general equilibrium approachJi Feng Li, Xin Wang, Ya Xiong Zhang and Qin Kou Energy Policy, 2014, vol. 75, issue C, 46-56 Abstract: We use a dynamic CGE model (SICGE) to assess the economic and climate impacts of emissions trading system (ETS) in China with a carbon price of 100 Yuan/ton CO2. A particular focus is given to the regulated electricity price regime, which is a major concern of electricity sector’s cost-effective participation in ETS in China. We found: (1) Carbon pricing is an effective policy for China to reduce CO2 emissions. Total CO2 emissions reduction ranges from 6.8% to 11.2% in short-term. (2) Rigid electricity price entails lower CO2 emissions reduction but can be considered as a feasible starting point to introduce carbon pricing policies in short-term as long as governmental subsidies are given to electricity production. (3) In mid- and long-term, the efficient policy is to earmark carbon revenue with competitive electricity price. We propose to use carbon revenue to reduce consumption tax in the first year of the introduction of carbon price and to use the carbon revenue to reduce production tax in following years. Keywords: CGE; Carbon pricing; Electricity price regulation (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:75:y:2014:i:c:p:46-56 DOI: 10.1016/j.enpol.2014.07.021 Access Statistics for this article Energy Policy is currently edited by N. France More articles in Energy Policy from Elsevier |
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