Chazhong Ge, Shuting Gao, Yajuan Ren and Guili Sun
Long Feng, Ge Chazhong, Bi Fenfen and Qin Changbo
On January 1, 2018, China had officially implemented Environmental Protection Tax (EPT) Law and started to collect EPT from polluting industrial sources. With the Chinese governmental institutional reform being taken last year, CO2 control has been delegated to the Ministry of Ecology and Environment from the National Development and Reform Commission, making it possible for the co-benefit of controlling CO2 and conventional pollutants so as to realize carbon emission reduction and low carbon development. Does the EPT Law contribute to carbon emission reduction and eventually low carbon development in China? This chapter presents a conceptual analysis, a computable general equilibrium (CGE) model analysis and a power sector case study to find out the relationship between EPT and CO2 emissions and make policy recommendation accordingly.