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Regional disparity and Mitigation cost for carbon policy in China Assessment based on multi-regional CGE model

Literature review shows that most economic analyses of climate change have focused on the international cross-section analysis on the impact of mitigation actions. This paper departs in disaggregating the impact by provinces in one country, focusing particularly on industrial structure and income disparities between different provinces in China. With different economic growth, there exists substantial difference for energy consumption and carbon emission between provinces in China. In 2008, the highest carbon emission per GDP is about six times of the lowest carbon intensity. Therefore, it is expected carbon mitigation will result in different effect on different provinces. This paper will build a multi-regional computable general equilibrium model for China, which contains 31 provinces. Uniform carbon tax is imposed across provinces to achieve different carbon mitigation. Different carbon policies will be simulated based on the multi-regional CGE model and its effect on regional disparity will be analyzed.