Numerical Analysis of Environmental and Energy Policies Related on Automobiles in China : Evaluation by Dynamic Computable General Equilibrium Model

Abstract

The Chinese government is examining to introduce some environmental and energy policies like as the fuel tax, mileage regulation or tax reduction to low emission vehicles, to the situation that the load rests upon environmental energy by the rapid growth of automobile market in Chinese. In this paper, we evaluated the environmental or economic impacts generated by introducing such environmental and energy policies by applying the dynamic computable general (DCGE) equilibrium model. From the results of numerical simulation, we obtained the some implications that the setting of high fuel tax level was necessary to regulate fuel consumption more effectively, mileage regulation was most effective policy to fuel reduction and the tax reduction like as Green tax or subsidy policy was necessity to change the type of car to low emission vehicles. © 2006, JAPAN SECTION OF THE REGIONAL SCIENCE ASSOCIATION INTERNATIONAL. All rights reserved.