Will Carbon Tax Yield Employment Double Dividend for China?

Jinghua Zhang, Wenzhen Zhang

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.

Keywords


Carbon Tax; Employment; Double Dividend

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DOI: http://dx.doi.org/10.18533/ijbsr.v3i4.36

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International journal of business and social research (Print)
ISSN 2164-2540

International journal of business and social research (Online)
ISSN 2164-2559

[International Journal of Business and Social Research (IJBSR) previously published by MIR Center for Socio-Economic Research, MD, USA. From February 2018 this journal is published by the LAR Center Press, OR, USA]