Quantitative Analysis on the Feasibility of Energy-Environment Tax Implementationin China with a CGE Model

In this paper, a Computable General Equilibrium (CGE) model was applied to quantitatively simulate the situation of implementing energy-environment tax according to different tax rates on different energy inputs of coal and oil/gas, and predicted the feasibility of implementing the policy in China. After the simulation and analysis, we got some conclusions as follows: implementing the policy could help to promote the industries, especially the energy-intensive industries, to save energy, optimize energy consumption structure, and abate SO_2 and CO_2 emissions, but it has little use to improve energy utilization efficiency, and generated negative impacts on macro-economy, therefore energy-environment tax is not fitful to be implemented as a main energy environmental policy nowadays in China.