Impacts of Carbon Tax Policy on Regional Development in China: A Dynamic Simulation Based on a Multi-regional CGE Model

Low-carbon economy has become a worldwide trend.This paper applies a dynamic multi-regional computable general equilibrium (CGE) model to conduct research into the impacts of carbon tax policy on regional economic development in China based on a China Interregional Input-Output Table 2002.Simulation results show that different regions endure different impacts when a uniform carbon tax policy is implemented.It exerts negative influences on less developed regions and positive economic influences on coastal areas,which will widen regional economic disparity.Regional differentiated carbon tax policies may alleviate differences of impacts of CO2 emission reduction on regional economy and then help to marrow regional economic gap.Therefore,regional differentiated carbon tax policies,from the viewpoint of efficiency and equality,may be a win-win choice for developing low-carbon economy and promoting harmonious development of regional economy in China.