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The Impacts of an Energy Price Decline Associated with a Carbon Tax on the Energy-Economy-Environment System in China

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  • Zhengquan Guo
  • Xingping Zhang
  • Daojuan Wang
  • Xiaonan Zhao

Abstract

This article conducts a computable general equilibrium model to analyze the impact of energy price decline associated with a carbon tax policy in China. The findings show that the fossil energy price decline will significantly increase fossil energy demand and carbon emissions, while carbon tax can offset the impacts, which is an alternative policy to mitigate the carbon emissions. Since the carbon tax policy will lead to relatively small negative impacts on real GDP when fossil energy price is in decline, during which it is a good opportunity for China to introduce carbon tax policy.

Suggested Citation

  • Zhengquan Guo & Xingping Zhang & Daojuan Wang & Xiaonan Zhao, 2019. "The Impacts of an Energy Price Decline Associated with a Carbon Tax on the Energy-Economy-Environment System in China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 55(12), pages 2689-2702, September.
    • Handle: RePEc:mes:emfitr:v:55:y:2019:i:12:p:2689-2702
    DOI: 10.1080/1540496X.2018.1562899
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    Cited by:

    1. Zhang, Yanfang & Shi, Xunpeng & Qian, Xiangyan & Chen, Sai & Nie, Rui, 2021. "Macroeconomic effect of energy transition to carbon neutrality: Evidence from China's coal capacity cut policy," Energy Policy, Elsevier, vol. 155(C).
    2. Qi Zhang & Yi Hu & Jianbin Jiao & Shouyang Wang, 2022. "Exploring the Trend of Commodity Prices: A Review and Bibliometric Analysis," Sustainability, MDPI, vol. 14(15), pages 1-22, August.

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