EXPERTISE / SOLUTION
Many countries are levying the carbon tax or climate change tax to reduce the energy consumption and emission. We can estimate the economic and environmental effects of the following tax policies: whether levy the carbon tax or not, how many should be and how to allocate the tax revenue. We can also roughly group it into two parts by the research purpose: one is to evaluate the carbon tax rate to meet the reduction targets, another is to estimate the economic-environmental effects in multiple carbon tax scenarios.
Carbon trade scheme
The methods to reduce the emissions mainly include total control, carbon tax and carbon trade. Carbon trade favors to the energy saving, emission reduction, cost reduction and technique development. Simply, carbon trade use the carbon price to balance the market. Firms will compare the technique investment and carbon emission quote to decide if it is worth investing the technology.
CGE model is also used to estimate the emissions of important pollutants, such as SO2, NOx.