Platform for China Energy & Environmental Policy Analysis: A general design and its application

This paper introduces the China Energy & Environmental Policy Analysis (CEEPA) system. The core of CEEPA is a recursive dynamic computable general equilibrium model, in which the interactions among different agents in the macroeconomic system of China are described. The specific characteristics of Chinese labor market and energy market are also taken into account. The corresponding software system is also developed. CEEPA and its related software was designed for providing decision makers a uniform platform to simulate, analyze and compare different energy and environmental policies conveniently, flexibly and immediately. The application of CEEPA is illustrated in a case study which compares the energy, environmental and socio-economic impacts of energy tax and carbon tax. Results show that given the same extent of direct disturbance, carbon tax is able to restrict energy consumption and CO₂ emissions to a greater extent, but the general socio-economic cost caused by energy tax is lower.