Will Carbon Tax Yield Employment Double Dividend for China?

Jinghua Zhang and Wenzhen Zhang
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Jinghua Zhang: National Tax Institute of SAT, Yangzhou, China
Wenzhen Zhang: National Tax Institute of SAT, Yangzhou, China

International Journal of Business and Social Research, 2013, vol. 3, issue 4, 124-131

Abstract: Carbon tax is an important economic means to reduce carbon emission. This paper establishes a Computable General Equilibrium (CGE) model to reflect China’s resource environment where economic growth and employment play a role by analyzing impacts of carbon tax on employment. The CGE model measures short and long-term impacts of carbon tax on employment, and examines whether the employment “double dividend†would be possible. The analysis shows that the demand for employment tends to decrease as a whole, but different groups of employees would be affected in various ways. “Double dividend†will be possible if appropriate carbon tax cycle is in place.

Keywords: Carbon Tax; Employment; Double Dividend (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:lrc:larijb:v:3:y:2013:i:4:p:124-131

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