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How Does the Carbon Tax Influence the Energy and Carbon Performance of China’s Mining Industry?

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  • Runqing Zhu

    (Collaborative Innovation Center for Energy Economics and Energy Policy, China Institute for Studies in Energy Policy, School of Management, Xiamen University, Xiamen 361005, China)

  • Boqiang Lin

    (Collaborative Innovation Center for Energy Economics and Energy Policy, China Institute for Studies in Energy Policy, School of Management, Xiamen University, Xiamen 361005, China)

Abstract

As the world’s largest energy consumer, China’s CO 2 emissions have significantly risen, owing to its rapid economic growth. Hence, levying a carbon tax has become essential in accelerating China’s carbon neutralization process. This paper employs the two-stage translog cost function to calculate the price elasticity of the mining industry’s energy and input factors. Based on the price elasticity, the carbon tax’s influence on the mining industry’s energy and carbon performance is estimated. In the calculation of energy efficiency, the non-radial directional distance function is adopted. The results express that the carbon tax significantly decreases the mining industry’s CO 2 emissions and promotes its energy and carbon performance. In addition to levying a carbon tax, the government should also strengthen the market-oriented reform of the oil and power infrastructure to optimize the mining industry’s energy structure.

Suggested Citation

  • Runqing Zhu & Boqiang Lin, 2022. "How Does the Carbon Tax Influence the Energy and Carbon Performance of China’s Mining Industry?," Sustainability, MDPI, vol. 14(7), pages 1-16, March.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:7:p:3866-:d:779076
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    2. Liu, Na & Yao, Xilong & Wan, Fang & Han, Yunfei, 2023. "Are tax revenue recycling schemes based on industry-differentiated carbon tax conducive to realizing the “double dividend”?," Energy Economics, Elsevier, vol. 124(C).

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