The Impact of Carbon Tax on Economic Growth in China

Carbon tax is an effective measure to build low-carbon economy and has significant influences on economic growth. Using the panel data of 29 provinces from 1999 to 2008, we build a panel data model and adopt Generalized Least Squares estimation (GLS) to analyze the impact of carbon tax on economic growth in China. The results are as follows: the impact of carbon tax on economic growth in China varies considerably between different regions; carbon tax could stimulate economic growth of most eastern regions, while can hinder some provinces' in middle and western areas. (C) 2011 Published by Elsevier Ltd. Selection and peer-review under responsibility of RIUDS