The technical impacts of the carbon tax in China

Abstract Despite the significant impacts of technology on socioeconomic effects climate policies, many previous researchers neglected induced technical and thus resulted in biased evaluations policies. Hence, it is important that should be endogenized policy evaluation framework. The purpose this paper quantification Chinese carbon tax using a Computable General Equilibrium (CGE) model. are denoted by technological change (ITC), which function energy-use efficiency (EUE), energy-production (EPE), nonenergy-production (ENE). will increase energy cost share because internalisation abatement costs. This empirically shows decrease production but use nonenergy efficiency. Under tax, ITC RGDP, household welfare, average social (ASCC). finding implies towards progress sectors; emission become costlier under impacts. Although method was from an existing published paper, CGE analysis China original paper.