Impact Assessment on Economy in China for Carbon Taxation Policy Based on A Computable General Equilibrium(CGE) Model

Take the year 2007 as the base year,through the introduction of different carbon tax rates in six scenarios for fossil energy production sectors,a computable general equilibrium(CGE) model is constructed for the analysis of carbon tax policy changes on China's economy.On this basis,a detailed analysis of carbon tax policy on China's macroeconomic and sectorial effects is maken.The simulation suggests that once the carbon tax is levied,the total level of output will have decreased from 0.12% to 0.42%,nominal GDP fell from 0.78 percent to 2.56%,the total income of the residents down 0.71% to 2.34%,corporate income decreased from 0.80 to 2.60% and other negative effects,but also brought the government revenue from 2.72% to 7.03%,total investment increased from 0.54% to 1.46% and other positive effects of changes in sectorial output shows that the introduction of carbon tax will improve the energy structure and adjustment of industrial structure,and the environment greatly benefit from the carbon tax.