Title: The emission abatement of enterprises in China: a Bayesian DSGE approach under carbon tax scenarios

Authors: Haitao Xu; Xiongfeng Pan; Yuduo Lu

Addresses: School of Economics and Management, Dalian University of Technology, Dalian 116024, China ' School of Economics and Management, Dalian University of Technology, Dalian 116024, China ' School of Economics and Management, Dalian University of Technology, Dalian 116024, China

Abstract: In this study, we establish an environmental DSGE model embodying carbon tax to compare the impact of technology and consumption shock on macro-environment and emission abatement of enterprises under carbon tax and non-tax scenario in China. The results show that the carbon tax policy will exert greater effect on technology and consumption shock. In carbon tax scenario, the economic expansion effect caused by a technology shock is likely to be dampened and emission abatement will increase. The response of emission abatement of enterprises in carbon tax scenario is contrary to that in non-tax scenario under a positive consumption shock.

Keywords: carbon tax policy; emission abatement; dynamic stochastic general equilibrium; pollutant emissions; macroeconomic fluctuation; China.

DOI: 10.1504/IJGW.2022.123280

International Journal of Global Warming, 2022 Vol.27 No.2, pp.173 - 192

Received: 08 Sep 2021
Accepted: 01 Nov 2021
Published online: 07 Jun 2022 *

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