Carbon Tax: International Experiences and Inspirations

To introduce a carbon tax is imperative in China because it will better respond to the international "Carbon Tariff", establish the image of China as a responsible power, mitigate China's pressure of CO2 emission, perfect China's environmental taxation system, and change China's economic growth pattern. International experiences show that carbon tax's negative impact on economic growth is not significant and far below expectations, but it can promote low carbon economic development. Foreign practice has given us inspirations that we must follow the principle of tax revenue neutral, form environmental and economic policy force, select a reasonable introduction opportunity, set up carbon tax exemption clause, and choose of progressive carbon tax rate.