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Single or combined tax? A comparative study of the effects of resource and carbon taxes under China's peak emission target

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  • Tingting Liu
  • Weijiang Liu
  • Min Liu
  • Yangyang Li

Abstract

Resource and carbon tax should be taken seriously as typical price control policies to address the dilemma between economic development and carbon emissions in developing countries. Therefore, based on China, we construct a dynamic CGE model to evaluate the carbon emission reduction and economic effects of a single tax policy (resource tax or carbon tax) versus their combination. The simulation results demonstrate that the carbon tax policy is superior to the resource tax-increasing policy under a single tax policy. Specifically, it is hard to meet the autonomous national contribution target of peaking carbon by 2030 only by raising the resource tax, and the economic loss is relatively heavy. The setting of the initial carbon tax will affect the carbon peak time and total carbon emissions. When the initial carbon tax is 25 yuan/tonne, carbon emissions will peak in 2029. A combined tax policy is preferable to a single carbon tax policy. The combination of gradually increasing the carbon tax rate and lowering the resource tax rate can effectively reduce economic losses, achieve a carbon peak and promote the joint development of the environment and economy.

Suggested Citation

  • Tingting Liu & Weijiang Liu & Min Liu & Yangyang Li, 2025. "Single or combined tax? A comparative study of the effects of resource and carbon taxes under China's peak emission target," Energy & Environment, , vol. 36(1), pages 75-92, February.
    • Handle: RePEc:sae:engenv:v:36:y:2025:i:1:p:75-92
    DOI: 10.1177/0958305X231179907
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