Will Carbon Tax Yield Employment Double Dividend for China?

Authors

  • Jinghua Zhang National Tax Institute of SAT Yangzhou, China
  • Wenzhen Zhang National Tax Institute of SAT Yangzhou, China

DOI:

https://doi.org/10.18533/ijbsr.v3i4.36

Keywords:

Carbon Tax, Employment, Double Dividend

Abstract

Carbon tax is an important economic means to reduce carbon emission. This paper establishes a Computable General Equilibrium (CGE) model to reflect China’s resource environment where economic growth and employment play a role by analyzing impacts of carbon tax on employment. The CGE model measures short and long-term impacts of carbon tax on employment, and examines whether the employment “double dividend” would be possible. The analysis shows that the demand for employment tends to decrease as a whole, but different groups of employees would be affected in various ways. “Double dividend” will be possible if appropriate carbon tax cycle is in place.

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