Economic implications of carbon neutrality in China: A dynamic general equilibrium analysis

• DOI: 10.1016/j.econmod.2024.106727
• Publication Date: 2024-03-30T07:31:15Z
• Authors: Shenghao Feng; Xiujian Peng; Philip Adams; Dalin Jiang; Robert Waschik
• Keywords: Carbon neutrality; Neutrality; Carbon fibers

We utilize a dynamic computable general equilibrium model to analyze the economic implications of carbon neutrality for China. Novel treatments power generation and capture storage (CCS) possibilities are feature analysis. calculate impact by comparing business-as-usual base-case scenario with results from an alternative scenario. discuss assumptions used in these scenarios shocks relating energy efficiency, preferences, implementation CCS. Our simulation show that macroeconomic (especially employment) setbacks minor, suggesting China should be able achieve joint policy goals both net 2060 doubling real gross domestic product 2035. also test sensitivity our core changes key underlying assumptions.