Carbon tax and carbon emission

Wenying Chen

Journal of Tsinghua University(Science and Technology) · 2002 · 32 citations · 0 references

Concepts

Abstract

Carbon dioxide (CO 2) is the most important greenhouse gas. Carbon taxes have been frequently advocated as a cost effective instrument for reducing carbon emissions. A MARKAL MACRO model of the China energy economy system was developed to examine the impact of carbon taxes on the Chinese energy system and economy. The results show that carbon taxatation would cause GDP (gross domestic product) less, but there is an optimal carbon tax rate which would effectively reduce carbon emission without a large impact on the GDP.