How to Balance Emission Reduction and Economic Growth in China: Evidence from Shandong Province

摘要

In recent years, the rapid development of China's economy has brought about a large number of fossil energy consumption, resulting in serious environmental pollution. As an important environmental protection tool, carbon tax has been paid more and more attention, and the carbon tax is in line with the general direction of China's green tax system reform. How do different carbon tax rates affect emission reduction and economic growth? Whether tax refund can reduce the negative influence of the carbon tax on economic growth? In this paper, a computable general equilibrium model (CGE) is applied to study different scenarios: combine different carbon tax rates with tax refund. The results show that it is feasible to achieve the goal of reducing the high carbon energy consumption by levying the carbon tax.