Design of Essential Elements Involved in China’s Carbon-Tax Taxation System and Its Implementation Strategies

Abstract

Based on a series of theoretical study of Pigou tax principle, polluter pays principle (PPP), double dividend theory, tax incidence and tax burden transfer, carbon tax excess burden, and the Laffer curve, this article determines the design of essential elements involved in carbon tax system, including the scope of carbon tax, the objects of Taxation, the tax payer, the tax link, the tax rate, and the tax preference, etc. Meanwhile, some principles are proposed when implementing strategies, that is, the principle of combination of efficiency and equity, the principle of tax rate dynamic adjustment, and the principle of tax neutrality.