Impact assessment of CO_2 mitigation on China economy based on a CGE model

An integrated economic,energy,and environmental recursive dynamic computable general equilibrium(CGE) model was used to provide support for decision making in China climate change policy.The model was used to evaluate the macro and sectorial economic impacts of propected carbon emission reduction policies in China, with implementation of the carbon tax in 2010 as the scenario.The results show that the GDP loss is 0～3.9% for carbon reduction rates of 0～40%.The social marginal abatement cost is about twice the technical marginal abatement cost.The conclusions are that the carbon abatement policy in China would benefit energy efficiency improvement,but would have negative impacts on China economic growth and employment.