Synergistic effects of carbon tax, revenue recycling, and technological progress on transport

China's transport sector is a major contributor to energy use and carbon emissions, requiring a low-carbon transition. Emerging transport technologies, including electrification, hydrogen, and intelligent systems, are modeled as technological progress improving energy efficiency. This study develops a multi-sector computable general equilibrium (CGE) model, disaggregating transport into rail, road, water, air, and other subsectors, to evaluate multiple carbon tax rates and revenue recycling scenarios. The analysis examines the synergistic effects of carbon taxation, revenue recycling, and technological progress on emissions, economic growth, and energy structure. Results show that carbon taxation without revenue recycling effectively reduces emissions but leads to GDP losses, achieving an environmental dividend without an economic efficiency dividend. When combined with revenue recycling, economic losses are mitigated, though emission reductions are partially offset. When further combined with technological progress representing emerging transport technologies, carbon taxes amplify emission reductions while alleviating negative impacts on sectoral output and the broader economy, and under certain scenarios a modest GDP gain is observed, suggesting the possibility of coordinated environmental and economic benefits. These findings provide quantitative evidence to guide carbon tax design and support strategic adoption of low-carbon transport technologies in China.