MARKET EQUILIBRIUM AND THE ENVIRONMENTAL EFFECTS OF TAX ADJUSTMENTS IN CHINA'S AUTOMOBILE INDUSTRY

• 成果类型: Article
• 署名作者: Xiao, Junji; Ju, Heng
• 署名单位: Fudan University; Shanghai University of Finance & Economics
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/REST_a_00444
• 发表日期: 2014-05
• 页码: 306-317
• 关键词: fuel-economy; emissions; STANDARDS; PRODUCTS; policies

摘要

This paper explores the effects of consumption-tax and fuel-tax adjustments in the Chinese automobile industry. Applying the model and simulation method of Berry, Levinson, and Pakes (1995), we conduct a comparative static analysis of equilibrium prices and sales, fuel consumption, and social welfare before and after tax adjustments. For the first time, we compare the progressivity of both taxes. Our empirical findings suggest that the fuel tax is effective in decreasing fuel consumption at the expense of social welfare, while the consumption tax does not significantly affect either fuel consumption or social welfare.