Proceedings of the 2nd International Symposium on Social Science and Management Innovation (SSMI 2019)

Economic and Environmental Effects of Resource Tax Reform in China: A Computable General Equilibrium

Authors
Ke Lyu, Jianqiu Sun
Corresponding Author
Ke Lyu
Available Online December 2019.
DOI
10.2991/ssmi-19.2019.10How to use a DOI?
Keywords
Resource tax reform; CGE model; Economic growth; Environment improvement.
Abstract

In order to lower carbon emission at a national scale, coal resource tax reform from quantity-based collection to ad valorem collection has been taken by Chinese government in December 2014. To research the economic and environmental impacts from the policy reform, this paper extends a multi-sectoral computable general equilibrium (CGE) model and GAMS are used to solve for the equilibrium. Two scenarios are designed, quantity-based collection and ad valorem collection with different tax rate, within the CGE model. By comparing results from the resource tax reform, some conclusions could be captured. The first conclusion is that there is a negative relationship existing between gross domestic product of China and the higher tax rate due to the decreasing of output and the total output for each industry would decline obviously. The second conclusion is from the environmental aspect. With the higher resource tax burden, the total resource demand would decrease, as a result, the structure of energy would be improved largely. The total carbon emissions, as well as other air pollutants would be decreased. In conclusion, the benefits brought by the tax reform would reach the China’s goal for carbon emission reduction.

Copyright
© 2019, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 2nd International Symposium on Social Science and Management Innovation (SSMI 2019)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
December 2019
ISBN
978-94-6252-855-0
ISSN
2352-5398
DOI
10.2991/ssmi-19.2019.10How to use a DOI?
Copyright
© 2019, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Ke Lyu
AU  - Jianqiu Sun
PY  - 2019/12
DA  - 2019/12
TI  - Economic and Environmental Effects of Resource Tax Reform in China: A Computable General Equilibrium
BT  - Proceedings of the 2nd International Symposium on Social Science and Management Innovation (SSMI 2019)
PB  - Atlantis Press
SP  - 447
EP  - 454
SN  - 2352-5398
UR  - https://doi.org/10.2991/ssmi-19.2019.10
DO  - 10.2991/ssmi-19.2019.10
ID  - Lyu2019/12
ER  -