A Comprehensive Package of Macroeconomic Policy Measures for Implementing China’s Climate Mitigation Strategy
IMF Working Papers, July 15, 2022
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Bibliographic details
- Authors: Jean Chateau, Wenjie Chen, Florence Jaumotte, Karlygash Zhunussova
- Published: July 15, 2022
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798400215711.001
Overview and methodology
- Purpose: Present ways for China to achieve its climate goals while also attain high-quality growth—growth that is balanced, inclusive, and green.
- Model: Uses a dynamic computable general equilibrium model that is calibrated to China.
- Scenarios considered: multiple scenarios incorporating a sequence of layered policies:
- (i) frontloading mitigation with an earlier emissions peak,
- (ii) power market reforms,
- (iii) economic rebalancing.
Key findings
- Layered policies can significantly contribute to the success of China’s climate strategy overall.
- These policies lower the shadow price of carbon.
- These policies lower the associated mitigation costs.
- Distribution analysis provides proposals to lessen the impact on vulnerable households.
Policy scenarios and components
- Frontloading mitigation with an earlier emissions peak.
- Power market reforms.
- Economic rebalancing.
- Combined sequencing of the above to assess interactions and aggregate impacts.
Distributional considerations
- The analysis includes distribution analysis.
- Proposals are offered to lessen the impact of mitigation measures on vulnerable households.
Publication metadata and identifiers
- Authors: Jean Chateau, Wenjie Chen, Florence Jaumotte, Karlygash Zhunussova
- Date: July 15, 2022
- Pages: 44
- Volume: 2022
- Issue: 142
- Series: Working Paper No. 2022/142
- DOI: https://doi.org/10.5089/9798400215711.001
- Stock No: WPIEA2022142
- ISBN: 9798400215711
- ISSN: 1018-5941
- Subjects: Climate policy, Consumption, Environment, Greenhouse gas emissions, National accounts, Non-renewable resources
- Keywords: carbon neutrality, carbon pricing scheme, Chinese economy, climate mitigation initiative, climate policy, climate strategy, Computable General Equilibrium model, Consumption, E. Policy simulation, ETS trading price, Global, Greenhouse gas emissions, mitigation strategy, Non-renewable resources, power market, rebalancing
Jean Chateau, Wenjie Chen, Florence Jaumotte, and Karlygash Zhunussova. "A Comprehensive Package of Macroeconomic Policy Measures for Implementing China’s Climate Mitigation Strategy", IMF Working Papers 2022, 142 (2022), accessed 9/16/2026, https://doi.org/10.5089/9798400215711.001
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