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Macroeconomic Effects of CO2 Emission Limits: A Computable General Equilibrium Analysis for China

Listed author(s):
  • ZhongXiang Zhang

    ()

    (Landbouwuniversiteit Wageningen, Department of General Economics,)

The paper analyzes the macroeconomic effects of limiting China's CO2 emissions by using a time-recursive dynamic computable general equilibrium (CGE) model of the Chinese economy. The baseline scenario for the Chinese economy over the period to 2010 is first developed under a set of assumptions about the exogenous variables. Next, we analyze the macroeconomic implications of two less restrictive scenarios under which China's CO2 emissions in 2010 will be cut by 20% and 30% respectively relative to the baseline, assuming that carbon tax revenues are retained by the government. Then, we compute the efficiency improvement of four indirect tax offset scenarios relative to the two tax retention scenarios above. Furthermore, a comparison with other studies for China, which include the well-known global studies based on GLOBAL 2100 and GREEN, is made in terms of both the baseline scenarios and carbon constraint ones. The paper ends with some concluding remarks.

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Paper provided by Wageningen University, Mansholt Graduate School of Social Sciences in its series Mansholt Working Papers with number 01-96.

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Date of creation: 1996
Handle: RePEc:ags:wagmwp:0196
Contact details of provider: Web page: http://www.sls.wau.nl/mi/mgs/index.htm

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  1. Louis Beuuséjour & Gordon Lenjosek & Michael Smart, 1995. "A CGE Approach to Modelling Carbon Dioxide Emissions Control in Canada and the United States," The World Economy, Wiley Blackwell, vol. 18(3), pages 457-488, 05.
  2. Willem Gunning, Jan & Keyzer, Michiel A., 1995. "Applied general equilibrium models for policy analysis," Handbook of Development Economics,in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 35, pages 2025-2107 Elsevier.
  3. ZhongXiang Zhang & Henk Folmer, 1995. "The choice of policy instruments for the control of carbon dioxide emissions," Intereconomics: Review of European Economic Policy, Springer;German National Library of Economics;Centre for European Policy Studies (CEPS), vol. 30(3), pages 133-142, May.
  4. Alan S. Manne, 1992. "Global 2100: Alternative Scenarios for Reducing Carbon Emissions," OECD Economics Department Working Papers 111, OECD Publishing.
  5. Alan S. Manne & Richard G. Richels, 1990. "CO2 Emission Limits: An Economic Cost Analysis for the USA," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 51-74.
  6. Alan S. Manne & Richard G. Richels, 1991. "Global CO2 Emission Reductions - the Impacts of Rising Energy Costs," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 87-108.
  7. Manne, Alan S & Richels, Richard G, 1991. "International Trade in Carbon Emission Rights: A Decomposition Procedure," American Economic Review, American Economic Association, vol. 81(2), pages 135-139, May.
  8. Jean-Marc Burniaux & John P. Martin & Giuseppe Nicoletti & Joaquim Oliveira Martins, 1992. "GREEN a Multi-Sector, Multi-Region General Equilibrium Model for Quantifying the Costs of Curbing CO2 Emissions: A Technical Manual," OECD Economics Department Working Papers 116, OECD Publishing.
  9. Andrew Dean & Peter Hoeller, 1992. "Costs of Reducing CO2 Emissions: Evidence from Six Global Models," OECD Economics Department Working Papers 122, OECD Publishing.
  10. Jean-Marc Burniaux & John P. Martin & Giuseppe Nicoletti & Joaquim Oliveira Martins, 1991. "The Costs of Policies to Reduce Global Emissions of CO2: Initial Simulation Results with GREEN," OECD Economics Department Working Papers 103, OECD Publishing.
  11. Robert H. Williams, 1990. "Low-Cost Strategies for Coping with CO2 Emission Limits (A Critique of "CO2 Emission Limits: an Economic Cost Analysis for the USA" by Alan Manne and Richard Richels)," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 35-60.
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