Market Equilibrium and the Environmental Effects of Tax Adjustments in China's Automobile Industry
研究中国汽车行业消费税和燃油税调整对均衡价格、销量、燃油消耗和社会福利的影响,发现燃油税能有效降低燃油消耗但损害社会福利,而消费税对两者影响不显著。
Abstract This paper explores the effects of consumption-tax and fuel-tax adjustments in the Chinese automobile industry. Applying the model and simulation method of Berry, Levinson, and Pakes (1995), we conduct a comparative static analysis of equilibrium prices and sales, fuel consumption, and social welfare before and after tax adjustments. For the first time, we compare the progressivity of both taxes. Our empirical findings suggest that the fuel tax is effective in decreasing fuel consumption at the expense of social welfare, while the consumption tax does not significantly affect either fuel consumption or social welfare.