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Journal of Geographical Systems

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13-07-2017 | Original Article

The effect of carbon tax on carbon emission abatement and GDP: a case study

Authors: Xiao Liu, Yee Leung, Yuan Xu, Linda Chor Wing Yung

Published in: Journal of Geographical Systems | Issue 4/2017

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Abstract

Carbon tax has been advocated as an effective economic instrument for the abatement of CO₂ emission by various countries, including China, the world’s biggest carbon emission country. However, carbon emission abatement cannot be done while ignoring the impact on economic growth. A delicate balance needs to be achieved between the two to find an appropriate pathway for sustainable development. This paper applies a multi-objective optimization approach to analyze the impact of levying carbon tax on the energy-intensive sectors of Guangdong province in China under the constraint of emission reduction target. This approach allows us to evaluate carbon emission minimization while maximizing GDP. For policy analysis, we construct five scenarios for evaluation and optimal choice. The results of the analysis show that a lower initial carbon tax rate is not necessarily better, and that a carbon tax is an effective means to reduce CO₂ emissions while maintaining a certain level of GDP growth.

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Title: The effect of carbon tax on carbon emission abatement and GDP: a case study
Authors: Xiao Liu
Yee Leung
Yuan Xu
Linda Chor Wing Yung
Publication date: 13-07-2017
Publisher: Springer Berlin Heidelberg
Published in: Journal of Geographical Systems / Issue 4/2017
Print ISSN: 1435-5930
Electronic ISSN: 1435-5949
DOI: https://doi.org/10.1007/s10109-017-0254-1

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