China's Ability to Alleviate the Problem Associated with Carbon Tax Through Conditional Cash Transfers

Yingying Zheng
2021 Advances in Economics, Business and Management Research   unpublished
Nowadays, to alleviate the problems caused by carbon dioxide, governments distribute kinds of carbon tax policies. Conditional Cash Transfers (CCTs) are a critical component of the distributional effects around carbon taxes and contribute significantly to their alleviation. Recent studies related to CCTs have shown that research on the application of CCTs in carbon tax redistribution is concentrated in developed countries and some developing countries but not in China. To fill the gap, this
more » ... r aims to ascertain whether China can alleviate the problem associated with carbon tax through CCTs. This paper first did a literature review for CCTs and then further developed the calculation of the total distributional effect around carbon taxes by converging its total distributional effect of each income group to the mean, and takes Shanghai as a case study. The household income classifications of the existing CCTs in China and international standards are combined into a new household income group. This paper concludes that the four categories of the new household income group, including the Lowest, Low, Middle, and Higher, results in grant amounts of $466.032, $718.466, and the remaining two $0 per year. Thus, the case study of Shanghai demonstrates China's ability to mitigate the problems associated with carbon taxes through CCTs.
doi:10.2991/assehr.k.211209.322 fatcat:zdfwycmdyrdhppl2lyqdo3gjqq