Integrated Evaluation of Optimal Carbon Tax Policy by Means of Environmental Value-added in China

Abstract

On the basis of available data, we have built an eco-conscious socioeconomic framework model including 36 sectors by means of environmental value-added theory and developed energy and carbon dioxide (CO₂) emission related scenarios in order to evaluate comprehensively the effect of carbon tax on CO₂ emission curtailment and introduction of suitable alternative energy in China. An optimal carbon tax rate is derived endogenously.