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The Achievement of Multiple Nationally Determined Contribution Goals and Regional Economic Development in China

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  • Yongna Yuan

    (University of Chinese Academy of Sciences)

  • Guiyu Li

    (University of Chinese Academy of Sciences)

  • Hongbo Duan

    (University of Chinese Academy of Sciences)

Abstract

In this paper, we develop a multiregional dynamic computable general equilibrium model, in which the technical details of the power sector are enriched by endogenizing nonfossil energy technological change. We then examine the impact of China’s carbon peaking and energy transition goals in 2030 on regional economic development. The results show that the carbon pricing policy will have a negative impact on the economy and aggravate the regional economic imbalance but will be conducive to total energy control. The targeted power investment policy promotes economic development and alleviates the regional economic imbalance; further, clean power investment also provides incentives for developing nonfossil energy technologies. It seems to be natural to achieve the carbon peaking and carbon intensity goals in 2030, whereas it will be more challenging to realize the total energy control and clean energy development goals. Targeted power investment adjusting combined with flexible carbon pricing does well in reconciling the attainment of multiple policy goals and the balance of reginal economic development.

Suggested Citation

  • Yongna Yuan & Guiyu Li & Hongbo Duan, 2023. "The Achievement of Multiple Nationally Determined Contribution Goals and Regional Economic Development in China," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 84(4), pages 1155-1177, April.
    • Handle: RePEc:kap:enreec:v:84:y:2023:i:4:d:10.1007_s10640-022-00752-4
    DOI: 10.1007/s10640-022-00752-4
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