Economic Implications of CO2 Emission Reduction in Japan Applying a Dynamic CGE Model with Endogenous Technological Change： Use of Emission Permit Revenue

This study analyzes the economic and environmental impacts of a climate change measure in Japan using a single-country dynamic computable general equilibrium model with technological change as an endogenous variable. In this way, a comprehensive analysis of the relationships between climate change and its measures, technology, and economy has been done. The model uses technological change as the accumulation of knowledge capital that is derived from research and development investment. The study investigates the impacts of a climate change measure considering the use of emission permit revenue and technological change induced by the policy implementation in the Japanese economy. Simulation results show that there is compatibility between CO2 emission reduction and positive effects on GDP that depends on the ways of the revenue use and technological change induced by emission reduction. However, it is not possible to find the ways to realize positive effects on both GDP and welfare simultaneously in the study. The sensitivity analysis for the elasticity of substitution between knowledge capital and other inputs also confirms the obtained results.

Simulation Analysis of Macroeconomic Policy Orientations' Effects on the Industrial Economy——Based on Dynamic CGE Model

There are three different orientations of the macroeconomic policies,namely,factor-expansion,prudent-continuation and structural-adjustment.The paper uses the dynamic CGE model to simulate the effects of the three different orientations on the economy,and arrives at the following conclusions:while the factor-expansion policies can lead to growth of economic output,they also result in the further imbalance in the industrial structure and the "crowding-out effect" on the private investment.In addition,such growth is unsustainable in the long run;the growth of the industrial economy will decline rapidly to a lower level after reaching a certain high level.The prudent-continuation policies refer to the continuation of the current policies that sustain the current trends of the industrial economy,and such policies reduce the growth of the industrial economy to a lower level in the long run.The structural-adjustment policies reduce the economic output at the current stage;however,it can bring a gradual improvement of industrial structure and a balance of the supply and demand.In the long run,the optimized structure will improve the total factor productivity(TFP) and the production-possibility frontier,and thereby realize a longterm steady and rapid growth of the industrial economy.Four policy recommendations are proposed based on the simulation of the models,including taking the structural adjustment as the fundamental orientation of macroeconomic policies,lowering the "floor level" of economic growth with macro regulation,giving play to the fundamental role of market mechanism in structural adjustment and increasing the role of TFP in the growth of the industrial economy.

Impacts of Carbon Tax Policy on CO_2 Mitigation and Economic Growth in China

In this paper we examine the impacts of carbon tax policy on CO2 mitigation effects and economic growth in China by using a dynamic energy-environment-economy computable general equilibrium （CGE） model. The results show that 30, 60, and 90 RMB per ton CO2 of carbon tax rate will lead to a reduction of CO2 emissions by 4.52%, 8.59%, and 12.26%, as well as a decline in the GDP by 0.11%, 0.25%, and 0.39% in 2020, respectively, if carbon tax revenues are collected by the government. Moreover, with energy efficiency improvements the CO2 emission per unit of GDP will equally drop by 34.79%, 37.49%, and 39.92% in 2020, respectively. Negative impacts on sectors and households will be alleviated if carbon tax revenues are returned to these sectors and households.

Can China Realize CO_2 Mitigation Target toward 2020?

本文基于动态CGE模型构建了一个能源-经济-环境模型,对2020年的CO2减排的潜力和政策选择进行了模拟。结果显示,碳税和投资调整是减缓CO2排放增长的有效政策手段,但它们对GDP会产生负面影响。加快技术进步可以同时促进减排和经济增长。在高技术进步+中碳税,以及低技术进步+中碳税+中投资调整的情景下,中国2020年的CO2排放量将达到92.7-95.5亿t,CO2排放强度将为1.38-1.43t 万元-1。根据中国政府提出的2020年的减排目标,中国CO2排放强度需要由2005年的2.41t 万元-1降到2020年的1.45t 万元-1(2007年不变价表示)。但要实现这40%的减排目标并非易事,因为在正常的技术进步条件下再提高能源效率需要更多的投资来进行设备更新和技术改造。另外,未来的能源供给约束对CO2减排也会产生深刻的影响。未来中国应该大力发展低碳技术,国际社会应该支持中国发展低碳技术。