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It is Worth Pondering Whether a Carbon Tax is Suitable for China’s Agricultural-Related Sectors

Author

Listed:
  • Weiguo Fan

    (State Key Laboratory of Earth Surface Processes and Resource Ecology, Faculty of Geographical Science, Beijing Normal University, Beijing 100875, China
    College of Resources Science and Technology, Faculty of Geographical Science, Beijing Normal University, Beijing 100875, China)

  • Zhicheng Gao

    (State Key Laboratory of Earth Surface Processes and Resource Ecology, Faculty of Geographical Science, Beijing Normal University, Beijing 100875, China
    College of Resources Science and Technology, Faculty of Geographical Science, Beijing Normal University, Beijing 100875, China)

  • Nan Chen

    (Department of Economics and Management, Baoding Vocational and Technical College, Baoding 071000, China)

  • Hejie Wei

    (State Key Laboratory of Earth Surface Processes and Resource Ecology, Faculty of Geographical Science, Beijing Normal University, Beijing 100875, China
    College of Resources Science and Technology, Faculty of Geographical Science, Beijing Normal University, Beijing 100875, China)

  • Zihan Xu

    (State Key Laboratory of Earth Surface Processes and Resource Ecology, Faculty of Geographical Science, Beijing Normal University, Beijing 100875, China
    College of Resources Science and Technology, Faculty of Geographical Science, Beijing Normal University, Beijing 100875, China)

  • Nachuan Lu

    (State Key Laboratory of Earth Surface Processes and Resource Ecology, Faculty of Geographical Science, Beijing Normal University, Beijing 100875, China
    College of Resources Science and Technology, Faculty of Geographical Science, Beijing Normal University, Beijing 100875, China)

  • Xuechao Wang

    (Sustainable Process Integration Laboratory—SPIL, NETME Centre, Faculty of Mechanical Engineering, Brno University of Technology—VUT Brno, Technická 2896/2, 616 69 Brno, Czech Republic)

  • Peng Zhang

    (State Key Laboratory of Earth Surface Processes and Resource Ecology, Faculty of Geographical Science, Beijing Normal University, Beijing 100875, China
    College of Resources Science and Technology, Faculty of Geographical Science, Beijing Normal University, Beijing 100875, China)

  • Jiahui Ren

    (State Key Laboratory of Earth Surface Processes and Resource Ecology, Faculty of Geographical Science, Beijing Normal University, Beijing 100875, China
    College of Resources Science and Technology, Faculty of Geographical Science, Beijing Normal University, Beijing 100875, China)

  • Sergio Ulgiati

    (Department of Sciences for the Environment, Parthenope University, 80133 Napoli, Italy)

  • Xiaobin Dong

    (State Key Laboratory of Earth Surface Processes and Resource Ecology, Faculty of Geographical Science, Beijing Normal University, Beijing 100875, China
    College of Resources Science and Technology, Faculty of Geographical Science, Beijing Normal University, Beijing 100875, China
    Joint Center for Global change and China Green Development, Beijing Normal University, Beijing 100875, China)

Abstract

Studying the characteristics, trends, and evolution of carbon emissions in agricultural related sectors is of great significance for rational formulation of carbon emission reduction policies. However, as an important carbon emission reduction policy, carbon tax has been controversial over whether or not it should be levied on China. Based on this consideration, this paper takes China’s agricultural related sectors as an example and analyzes the degree of carbon tax on macro-environment, macroeconomy, and agricultural sectors during the period 2020–2050 by constructing a 3EAD-CGE (economy-energy-environmental-agricultural-dynamics Computable General Equilibrium) model. The results show that: (1) carbon tax has a time effect, specifically, the short-term effect is better than the long-term. (2) If the incremental rate of carbon tax is carried out alone, it will exert a great influence on the macroeconomy as well as on most of the agricultural related sectors. (3) If a carbon tax is introduced at the same time as indirect taxes are cut (proportionally), the policy will exert a negative impact on agriculture-related sectors that are subsidized. However, the policy will have a positive impact on those nonsubsidized sectors. Finally, based on the results, we put forward some suggestions that are more suitable for the introduction of a carbon tax in China’s agricultural-related sectors.

Suggested Citation

  • Weiguo Fan & Zhicheng Gao & Nan Chen & Hejie Wei & Zihan Xu & Nachuan Lu & Xuechao Wang & Peng Zhang & Jiahui Ren & Sergio Ulgiati & Xiaobin Dong, 2018. "It is Worth Pondering Whether a Carbon Tax is Suitable for China’s Agricultural-Related Sectors," Energies, MDPI, vol. 11(9), pages 1-26, August.
    • Handle: RePEc:gam:jeners:v:11:y:2018:i:9:p:2296-:d:166849
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    1. Wen-Hsien Tsai, 2019. "Modeling and Simulation of Carbon Emission-Related Issues," Energies, MDPI, vol. 12(13), pages 1-8, July.
    2. Li, Meng & Gao, Yuning & Meng, Bo & Yang, Zhusong, 2021. "Managing the mitigation: Analysis of the effectiveness of target-based policies on China's provincial carbon emission and transfer," Energy Policy, Elsevier, vol. 151(C).

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