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Climate Mitigation in China: Which Policies Are Most Effective?

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Listed:
  • Ian W.H. Parry
  • Baoping Shang
  • Mr. Philippe Wingender
  • Nate Vernon-Lin
  • Tarun Narasimhan

Abstract

For the 2015 Paris Agreement on climate change, China pledged to reduce the carbon dioxide (CO2) intensity of GDP by 60–65 percent below 2005 levels by 2030. This paper develops a practical spreadsheet tool for evaluating a wide range of national level fiscal and regulatory policy options for reducing CO2 emissions in China in terms of their impacts on emissions, revenue, premature deaths from local air pollution, household and industry groups, and overall economic welfare. By far, carbon and coal taxes are the most effective policies for meeting environmental and fiscal objectives as they comprehensively cover emissions and have the largest tax base.

Suggested Citation

  • Ian W.H. Parry & Baoping Shang & Mr. Philippe Wingender & Nate Vernon-Lin & Tarun Narasimhan, 2016. "Climate Mitigation in China: Which Policies Are Most Effective?," IMF Working Papers 2016/148, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2016/148
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    References listed on IDEAS

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    Cited by:

    1. Ian Parry & Victor Mylonas, 2018. "Canada's Carbon Price Floor," CESifo Working Paper Series 6959, CESifo.
    2. Ameyaw, Bismark & Yao, Li & Oppong, Amos & Agyeman, Joy Korang, 2019. "Investigating, forecasting and proposing emission mitigation pathways for CO2 emissions from fossil fuel combustion only: A case study of selected countries," Energy Policy, Elsevier, vol. 130(C), pages 7-21.
    3. International Monetary Fund, 2016. "The People's Republic of China: Selected Issues," IMF Staff Country Reports 2016/271, International Monetary Fund.
    4. Ian Parry & Victor Mylonas & Nate Vernon, 2021. "Mitigation Policies for the Paris Agreement: An Assessment for G20 Countries," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 8(4), pages 797-823.
    5. Parry, Ian, 2020. "Increasing carbon pricing in the EU: Evaluating the options," European Economic Review, Elsevier, vol. 121(C).
    6. Liu, Weifeng & McKibbin, Warwick J. & Morris, Adele C. & Wilcoxen, Peter J., 2020. "Global economic and environmental outcomes of the Paris Agreement," Energy Economics, Elsevier, vol. 90(C).
    7. Ms. Longmei Zhang, 2016. "Rebalancing in China—Progress and Prospects," IMF Working Papers 2016/183, International Monetary Fund.
    8. Goulder, Lawrence H. & Long, Xianling & Lu, Jieyi & Morgenstern, Richard D., 2020. "China’s Unconventional Nationwide CO₂ Emissions Trading System: The Wide-Ranging Impacts of an Implicit Output Subsidy," RFF Working Paper Series 20-02, Resources for the Future.
    9. Govinda R. Timilsina & Jing Cao & Mun Ho, 2018. "Carbon Tax For Achieving China’S Ndc: Simulations Of Some Design Features Using A Cge Model," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 9(03), pages 1-17, August.
    10. Huntington, Hillard G. & Barrios, James J. & Arora, Vipin, 2019. "Review of key international demand elasticities for major industrializing economies," Energy Policy, Elsevier, vol. 133(C).
    11. Goulder, Lawrence H. & Long, Xianling & Lu, Jieyi & Morgenstern, Richard D., 2022. "China's unconventional nationwide CO2 emissions trading system: Cost-effectiveness and distributional impacts," Journal of Environmental Economics and Management, Elsevier, vol. 111(C).
    12. Stern, Nicholas & Xie, Chunping, 2023. "China’s new growth story: linking the 14th Five-Year Plan with the 2060 carbon neutrality pledge," LSE Research Online Documents on Economics 115068, London School of Economics and Political Science, LSE Library.
    13. Leonidas Paroussos & Kostas Fragkiadakis & Panagiotis Fragkos, 2020. "Macro-economic analysis of green growth policies: the role of finance and technical progress in Italian green growth," Climatic Change, Springer, vol. 160(4), pages 591-608, June.

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