Suchergebnisse

As an important policy instrument for climate mitigation, the carbon tax policy design and its consequent social-economic impact calls for more research. In this paper, a dynamic Computable General Equilibrium (CGE) model – CASIPM-GE model is applied to explore the impact of a carbon tax and different tax revenue recycling schemes on China's economy. Simulation results show that the carbon tax is effective to reduce carbon emissions with mild impact on China's macro economy. In particular, a production tax deduction can be used to recycle the carbon tax revenue if the government wants to reduce the cost of a carbon tax; however, a consumption tax deduction may help the economy to restructure and may benefit the long-run emissions reduction. In terms of industrial output, mostindustries are negatively affected; sectors with large share of exports are subjected to negative shocks if there is consumption tax deduction financed by the carbon tax revenue. The study suggests that carbon revenue recycling scheme is important in designing the carbon tax policy: a well-designed scheme can help reduce the cost of a carbon tax.

China is currently the world's largest single source of fossil fuel related CO2 emissions. In response to pressure from the international community, and in recognition of its role in global climate change mitigation, the Chinese government has announced a ; The authors gratefully acknowledge support from ARC Discovery Grant DP0988281 and DP120101088.

The emergence of substantial fiscal deficits and a large build up of government debt in major advanced economies will inevitably lead to a period of fiscal consolidation in coming years. In an earlier paper, Asian Economic Papers, 9, 2010 and 54, explored the effects of this fiscal adjustment in advanced economies on the global economic outlook. This paper focuses on the differences between the impacts of fiscal policy in advanced versus emerging economies. In particular, the need for more fiscal spending on infrastructure in emerging economies and the need for fiscal consolidation in advanced economies leads naturally to the question of what this asymmetric fiscal adjustment might do to global trade balances as well as global economic growth over the coming decades. The adjustment needed in both regions is substantial, and the asymmetry of the adjustment implies important consequences for trade and capital flows between regions as well as asset price adjustments within and between regions.

China is currently the world's largest single source of fossil fuel related CO2 emissions. In response to pressure from the international community, and in recognition of its role in global climate change mitigation, the Chinese government has announced a ; The authors gratefully acknowledge support from ARC Discovery Grant DP0988281 and DP120101088.

The emergence of substantial fiscal deficits and a large build up of government debt in major advanced economies will inevitably lead to a period of fiscal consolidation in coming years. In an earlier paper, Asian Economic Papers, 9, 2010 and 54, explored the effects of this fiscal adjustment in advanced economies on the global economic outlook. This paper focuses on the differences between the impacts of fiscal policy in advanced versus emerging economies. In particular, the need for more fiscal spending on infrastructure in emerging economies and the need for fiscal consolidation in advanced economies leads naturally to the question of what this asymmetric fiscal adjustment might do to global trade balances as well as global economic growth over the coming decades. The adjustment needed in both regions is substantial, and the asymmetry of the adjustment implies important consequences for trade and capital flows between regions as well as asset price adjustments within and between regions.