Impacts of Carbon Pricing in Reducing the Carbon Intensity of China's GDP

In contributing to global climate change mitigation efforts as agreed in Paris in 2015, China has set a target of reducing the carbon dioxide intensity of gross domestic product by 60-65 percent in 2030 compared with 2005 levels. Using a dynamic computable general equilibrium model of China, this study analyzes the economic and greenhouse gas impacts of meeting those targets through carbon pricing. The study finds that the trajectory of carbon prices to achieve the target depends on several factors, including how the carbon price changes over time and how carbon revenue is recycled to the economy. The study finds that carbon pricing that starts at a lower rate and gradually rises until it achieves the intensity target would be more efficient than a carbon price that remains constant over time. Using carbon revenue to cut existing distortionary taxes reduces the impact on the growth of gross domestic product relative to lump-sum redistribution. Recycling carbon revenue through subsidies to renewables and other low-carbon energy sources also can meet the targets, but the impact on the growth of gross domestic product is larger than with the other policies considered.

Bibliographic Details

Main Authors:	Cao, Jing, Ho, Mun, Timilsina, Govinda R.
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2016-06
Subjects:	KILOWATT-HOURS, POWER PLANTS, SULPHUR DIOXIDE, RENEWABLE RESOURCES, PRIMARY ELECTRICITY, REFINED PRODUCTS, RENEWABLE PORTFOLIO STANDARD, FOSSIL FUELS, CARBON DIOXIDE, AIR QUALITY, WIND RESOURCE, ELECTRICITY GENERATION TECHNOLOGIES, NITROGEN OXIDES, GENERATION, NUCLEAR PLANTS, GASOLINE, PRIMARY SOURCES OF ENERGY, EMISSION REDUCTION, PRICE, RAW COAL, WIND TURBINE, CLEANER, GREENHOUSE GAS, CLEAN AIR, REFINERY GAS, OIL PRICES, PETROLEUM, COAL USE, POWER INDUSTRY, AIR POLLUTION, OIL, HIGHER ENERGY PRICES, ENERGY SOURCES, REFINED PETROLEUM PRODUCTS, FUEL USE, DOMESTIC SUPPLY, POWER GENERATORS, THERMAL OUTPUT, CONSUMPTION OF COAL, RENEWABLE ELECTRICITY, FUELS, FUEL COSTS, POWER DISTRIBUTION, CARBON EMISSIONS, GASIFICATION, COAL TECHNOLOGIES, ENERGY REVIEW, TURBINE, EMISSION, PEAK LOAD, COAL MINING, ENERGY INPUT, BALANCE, ELECTRIC POWER, CARBON TRADING, ELECTRICITY, CEMENT, WIND POWER, HYDROPOWER, ELECTRICITY GENERATION, FOSSIL FUEL, EMISSION FACTORS, FUEL PRICES, PARTICULATE, VALUE OF ENERGY, ENERGY USE, GROSS OUTPUT, CONVENTIONAL COAL, TRANSMISSION LOSSES, POWER GENERATION TECHNOLOGIES, SOLAR POWER, WIND FARM, ENERGY OUTLOOK, ENERGY DEMAND, TONS OF CARBON, HEAT OUTPUT, NITROGEN, CARBON INTENSITY, FOSSIL FUEL PRICES, ELECTRICITY PRICE, COAL, CLEAN WATER, FUEL, CRUDE OIL, CONSUMPTION OF FUEL, PRICES OF ENERGY, COAL GAS, COAL ENERGY, SULFUR DIOXIDE, RENEWABLE SOURCES, SULFATES, WIND TURBINES, PETROLEUM PRODUCTS, RENEWABLE POWER, ELECTRICITY PRODUCTION, DIESEL, KEROSENE, IMPROVEMENTS IN ENERGY EFFICIENCY, HEAT GENERATION, COAL UNITS, FUEL COST, APPROACH, ELECTRICAL POWER, EMPLOYMENT, PRIMARY SOURCES, OIL PRICE, RAW GAS, CEMENT PRODUCTION, SUPPLY CURVE, PRICE OF ELECTRICITY, GREENHOUSE GAS EMISSIONS, BUILDING MATERIALS, VEHICLES, QUANTITY OF ELECTRICITY, CLEAN ENERGY, WIND, EMISSIONS, DEMAND FOR GASOLINE, LIQUID FUELS, SUPPLY CURVES, RENEWABLE PORTFOLIO STANDARDS, GAS, NUCLEAR GENERATION, ELECTRIC POWER INDUSTRY, ELECTRICITY CONSUMPTION, COAL OIL, ELECTRIC UTILITIES, BIOMASS, GENERATION CAPACITY, POWER GENERATION, CARBON CAPTURE, POWER SECTOR, OPTIONS, WATER, CARBON TAXES, PETROLEUM REFINING, POLLUTION, NUCLEAR CAPACITY, TAX REVENUES, GROSS DOMESTIC PRODUCT, SULFUR, QUANTITY OF FUEL, PARTICULATE MATTER, ENERGY CONSUMPTION, COAL PLANT, TAX RATE, HEAT, CLIMATE CHANGE, ELECTRICITY DEMAND, WORLD CONSUMPTION, HYDRO POWER, UTILITIES, POWER, COAL GENERATION, POLLUTANTS, PRIMARY ENERGY PRODUCTION, CLIMATE CHANGE MITIGATION, AMMONIA, HOT WATER, DEMAND CURVE, CARBON ENERGY, CONSUMPTION OF ENERGY, NUCLEAR ENERGY, GENERATING CAPACITY, ENERGY PRICES, ENERGY PRODUCTION, POWER PRODUCTION, PRIMARY ENERGY, TURBINES, TAX REVENUE, ENERGY EFFICIENCY, ELECTRICITY PRICES, CRUDE OIL PRICE, NATURAL GAS, COMBUSTION, GENERATION OF ELECTRICITY, INVESTMENT, COAL CONSUMPTION, NUCLEAR POWER, TARIFF, FUEL OIL, WIND SITES, AVAILABILITY, ONSHORE WIND, INVESTMENTS, PRICE OF COAL, RENEWABLE ENERGY, GASES, OIL USE, FOSSIL, COAL PRICE, PRICES, FOSSIL ENERGY, ENERGY,
Online Access:	http://documents.worldbank.org/curated/en/2016/06/26537193/impacts-carbon-pricing-reducing-carbon-intensity-chinas-gdp https://hdl.handle.net/10986/24652
Tags:	Add Tag No Tags, Be the first to tag this record!