A research on the policies to realise carbon intensity targets in China

In the context of carbon peaking and neutrality, it would be interesting to study the policy conditions for achieving carbon targets. From a technical perspective, this study constructed a theoretical model of the relationship between energy tax policy, R&D subsidy policy, and energy intensity within the framework of biassed technical change. Subsequently, through the logical relationship between energy and carbon intensities, three combination policy schemes for achieving the carbon intensity target were obtained. The findings are as follows: First, a higher rate of energy tax and R&D subsidy is destined to lead to a lower energy intensity, and energy tax policy can better boost energy intensity than R&D subsidy policy. Second, in terms of pulling the carbon intensity, the effect of the energy tax policy is better than that of the R&D subsidy policy, but in terms of its impact on the future policy effect, the R&D subsidy policy is better than the energy tax policy. Third, China should adopt a combination of policies to reduce carbon intensity, with a certain increase in the energy tax policy and a certain increase in the R&D subsidy rate policy.