Which policy is more effective, carbon reduction in all industries or in high energy-consuming Industries?——From dual perspectives of welfare effects and economic effects

Zhang, Tongbin

doi:10.1016/j.jclepro.2019.01.183

Cited by 41 publications

(16 citation statements)

References 38 publications

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“…In addition to Economides and Xepapadeas [20], Dissou and Karnizova [21] extend the models of Heutel [11] and Fischer and Springborn [13] by distinguishing between energy and nonenergy sectors on the supply side. Similar to Fischer and Springborn [13], they find that the volatility of macroeconomic variables is dampened even if the emission cap is only imposed in the energy sector (Due to space constraint, all studies that utilitize E-DSGE models are not reviewed here; other important studies include Zhang [22], Krajewski and Mackiewicz [23][24][25]. In addition, it is worth noting that E-DSGE model have been applied to the field of energy economics; notable examples include but are not limited to Balke and Brown [26], Aminu [27] and Mȃnescu and Nuño [28].…”

Section: E-dsge Modelsmentioning

confidence: 89%

Optimal Environmental Tax Rate in an Open Economy with Labor Migration—An E-DSGE Model Approach

Chan

2019

Sustainability

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Recent research has started to apply environmental dynamic stochastic general equilibrium (E-DSGE) models for climate policy analysis. However, all of the studies assume a closed economy setting, where there is no interaction of the economy with an outside economy; this paper fills the gap by constructing a two-city E-DSGE model that features labor migration. With the model, we solve for the optimal environmental tax rate determined by a Ramsey social planner, who maximizes household utility and takes into account the policy’s impact on labor migration. We find the following. (i) The optimal environmental tax rate should be more volatile and procyclical than the rates predicted in the aforementioned literature. (ii) In the closed economy setting, a higher environmental tax rate would always dampen production, while in our setting, it could stimulate output through deterring labor outflow and attracting labor inflow. (iii) We complement the existing literature by emphasizing that the optimal environmental tax rate in a city should respond not only to the shocks that occur internally, but also to those that occur in the opponent city. In particular, we find that it is optimal to reduce the environmental tax rate if a positive total factor productivity (TFP) shock occurs in the neighbor city.

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Section: E-dsge Modelsmentioning

confidence: 89%

Optimal Environmental Tax Rate in an Open Economy with Labor Migration—An E-DSGE Model Approach

Chan

2019

Sustainability

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“…Xu et al [17] studied the make-to-order problem of the supply chain under cap and trade regulation and provided the relevant coordination mechanism in the conclusion. Zhang [18] found that, compared with the constraint of carbon emission reduction for all industries, the government's constraint policy for enterprises with high energy consumption has a positive impact on the economy and social welfare. Zhou et al [19] compared the effects of a flat carbon tax policy and an increasing block carbon tax policy on carbon emission reduction and social welfare and found that increasing block carbon tax policy can relieve of the manufacturer's burden.…”

Section: Literature Reviewmentioning

confidence: 99%

Production Strategy Selection and Carbon Emission Reduction with Consumer Heterogeneity under Cap‐and‐Trade Regulation

Tang

2022

Complexity

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In literature, the firm’s selection of dual-product strategy under cap-and-trade regulation and the optimal emission reduction decisions are not well studied, especially through an analytical approach. We develop a theoretic model to investigate the firm’s selection on three product strategies in the presence of cap-and-trade policy, including two single product strategies and a dual-product strategy, and identify two types of consumers: consumers with low-carbon preference and regular consumers. Our analysis shows that, (i) in the absence of cap-and-trade policy, it is optimal to adopt dual-product strategy, but in the presence of this policy, it is optimal to adopt dual-product strategy or low-carbon product strategy. (ii) Compared with ordinary product strategy, adopting a low-carbon product strategy or dual-product strategy benefits the firm under cap-and-trade regulation. (iii) The additional cost of producing low-carbon product has an impact on the firm’s product strategy selection under cap-and-trade regulation. When it falls below a certain threshold, it is optimal to adopt a dual-product strategy; otherwise, it is optimal to adopt a low-carbon product strategy. Our research can provide reference for firm’s decision-making and government’s policy formulation.

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“…Existing researches on low carbon development focus on the relationship between economic growth and CO 2 emissions, [6][7][8][9] the determinants of emissions, [10][11][12][13] and the comparison of reduction policies. [14][15][16][17] Gill et al investigated the presence of environmental Kuznets curve for CO 2 emission in Malaysia and stated that economic growth alone cannot reverse the environmental degradation in the country. 18 Mardani et al gave a broad review of the nexus between economic growth and CO 2 emissions with other indicators 19 ; and the results demonstrated that the nexus between CO 2 emissions and economic growth gave reasons for policy options that have to reduce emissions by imposing limiting factors on economic growth as well.…”

Section: Introductionmentioning

confidence: 99%

“…Existing researches on low carbon development focus on the relationship between economic growth and CO 2 emissions, 6–9 the determinants of emissions, 10–13 and the comparison of reduction policies. 14–17 Gill et al. investigated the presence of environmental Kuznets curve for CO 2 emission in Malaysia and stated that economic growth alone cannot reverse the environmental degradation in the country.…”

Section: Introductionmentioning

confidence: 99%

Alternative pathways to CO₂ reduction in Gansu province, China

Wang

Guo

et al. 2022

Energy & Environment

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Climate change has been considerable concerned because of the increasing greenhouse gas (GHG) emissions. Gansu province is a typical less-developed and heavy chemical industrial province, its CO2 emission per unit of the gross domestic product (GDP) is 252.52 ton per million Chinese yuan (t/M-CNY) in 2019, which is 48.42% more than national average value. Gansu province faces the following dual pressures including maintaining economic growth and reducing carbon dioxide (CO2) emissions. This paper establishes a low carbon development system dynamics model in order to investigate the effects of four carbon reduction measures (technical progress, industrial transformation, fuel substitution, and low carbon awareness) on reducing CO2 emission over the period of 2020–2030. The simulation results indicate that, without direct intervention, the CO2 emissions per unit of GDP is projected to be 171.34 t/M-CNY by 2030. While utilizing technical progress, implementing industrial transformation, fuel substitution, and low carbon awareness could potentially be 2.12%, 3.33%, 0.72% and 1.27%, respectively less than that. For the sake of achieving the goal of CO2 reduction in the long run, the local government should address today’s industrial transformation and adopt reasonable combination of adjustment and control policies immediately.

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Which policy is more effective, carbon reduction in all industries or in high energy-consuming Industries?——From dual perspectives of welfare effects and economic effects

Cited by 41 publications

References 38 publications

Optimal Environmental Tax Rate in an Open Economy with Labor Migration—An E-DSGE Model Approach

Optimal Environmental Tax Rate in an Open Economy with Labor Migration—An E-DSGE Model Approach

Production Strategy Selection and Carbon Emission Reduction with Consumer Heterogeneity under Cap‐and‐Trade Regulation

Alternative pathways to CO₂ reduction in Gansu province, China

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Which policy is more effective, carbon reduction in all industries or in high energy-consuming Industries?——From dual perspectives of welfare effects and economic effects

Cited by 41 publications

References 38 publications

Optimal Environmental Tax Rate in an Open Economy with Labor Migration—An E-DSGE Model Approach

Optimal Environmental Tax Rate in an Open Economy with Labor Migration—An E-DSGE Model Approach

Production Strategy Selection and Carbon Emission Reduction with Consumer Heterogeneity under Cap‐and‐Trade Regulation

Alternative pathways to CO2 reduction in Gansu province, China

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Alternative pathways to CO₂ reduction in Gansu province, China