Carbon Tax, Subsidy, and Emission Reduction: Analysis Based on DSGE Model
Carbon emission has negative externalities, which will cause severe natural and social problems. In recent years, more and more attention has been paid to carbon emission reduction issue both in academic and application fields. This paper aims to explore the impact of punitive carbon tax and incenti...
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| Format: | Article |
| Language: | English |
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Wiley
2020-01-01
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| Series: | Complexity |
| Online Access: | http://dx.doi.org/10.1155/2020/6683482 |
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| _version_ | 1832547011949232128 |
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| author | Haoran Li Wei Peng |
| author_facet | Haoran Li Wei Peng |
| author_sort | Haoran Li |
| collection | DOAJ |
| description | Carbon emission has negative externalities, which will cause severe natural and social problems. In recent years, more and more attention has been paid to carbon emission reduction issue both in academic and application fields. This paper aims to explore the impact of punitive carbon tax and incentive carbon emission reduction subsidy on economy and environment through the dynamic stochastic general equilibrium (DSGE) framework. The results show that both carbon tax and carbon emission reduction subsidy policies can help to reduce carbon emissions and to improve environment quality. In addition, carbon emission reduction subsidy has a positive impact on economy, while carbon tax has the opposite impact. It follows that the incentive carbon emission reduction policy is more conducive to the coordinated development of economy and environment. This research can be a guideline for the government to formulate carbon emission abatement policies from the perspective of coordinated development. |
| format | Article |
| id | doaj-art-682b4fc0139f472d820e64a88daa3b8b |
| institution | Kabale University |
| issn | 1076-2787 1099-0526 |
| language | English |
| publishDate | 2020-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Complexity |
| spelling | doaj-art-682b4fc0139f472d820e64a88daa3b8b2025-02-03T06:46:21ZengWileyComplexity1076-27871099-05262020-01-01202010.1155/2020/66834826683482Carbon Tax, Subsidy, and Emission Reduction: Analysis Based on DSGE ModelHaoran Li0Wei Peng1College of Economics and Management, Shandong University of Science and Technology, Qingdao 266590, ChinaCollege of Economics and Management, Shandong University of Science and Technology, Qingdao 266590, ChinaCarbon emission has negative externalities, which will cause severe natural and social problems. In recent years, more and more attention has been paid to carbon emission reduction issue both in academic and application fields. This paper aims to explore the impact of punitive carbon tax and incentive carbon emission reduction subsidy on economy and environment through the dynamic stochastic general equilibrium (DSGE) framework. The results show that both carbon tax and carbon emission reduction subsidy policies can help to reduce carbon emissions and to improve environment quality. In addition, carbon emission reduction subsidy has a positive impact on economy, while carbon tax has the opposite impact. It follows that the incentive carbon emission reduction policy is more conducive to the coordinated development of economy and environment. This research can be a guideline for the government to formulate carbon emission abatement policies from the perspective of coordinated development.http://dx.doi.org/10.1155/2020/6683482 |
| spellingShingle | Haoran Li Wei Peng Carbon Tax, Subsidy, and Emission Reduction: Analysis Based on DSGE Model Complexity |
| title | Carbon Tax, Subsidy, and Emission Reduction: Analysis Based on DSGE Model |
| title_full | Carbon Tax, Subsidy, and Emission Reduction: Analysis Based on DSGE Model |
| title_fullStr | Carbon Tax, Subsidy, and Emission Reduction: Analysis Based on DSGE Model |
| title_full_unstemmed | Carbon Tax, Subsidy, and Emission Reduction: Analysis Based on DSGE Model |
| title_short | Carbon Tax, Subsidy, and Emission Reduction: Analysis Based on DSGE Model |
| title_sort | carbon tax subsidy and emission reduction analysis based on dsge model |
| url | http://dx.doi.org/10.1155/2020/6683482 |
| work_keys_str_mv | AT haoranli carbontaxsubsidyandemissionreductionanalysisbasedondsgemodel AT weipeng carbontaxsubsidyandemissionreductionanalysisbasedondsgemodel |