The inequality impacts of the carbon tax in China

Abstract Previous research has acknowledged that climate change is likely to expand the wealth gap, and policies may further increase inequality. Nevertheless, little focused on how affect To address this, we employ a Computable General Equilibrium (CGE) model quantify inequality impacts of Chinese carbon taxes. Our CGE results show tax are influenced by distribution damages, payments, recycling revenues. Specifically, positive correlation between income damage induces lower inequality, compared zero or negative correlation. Tax payments high-income households induce than proportional independent from income. Recycling revenues low-income only other schemes. The imply relative utility determined absolute income, whereas slight impact it. In words, governments could reduce feelings about under policy increasing national even if higher