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Please use this identifier to cite or link to this item: http://hdl.handle.net/10625/46015

Title: Dynamic computable general equilibrium analysis of environmental taxation and "rural-urban" migration distortions in China
Authors: Jing Cao
Keywords: TAXATION
RURAL TO URBAN MIGRATION
FUEL TAX
OUTPUT TAX
ENVIRONMENTAL AND HEALTH IMPACTS
COMPUTABLE GENERAL EQUILIBRIUM
RURAL URBAN DISPARITY
CHINA
Issue Date: 2007
Publisher: EEPSEA, IDRC Regional Office for Southeast and East Asia, Sinagpore, SG
Series/Report no.: EEPSEA research report series / IDRC. Regional Office for Southeast and East Asia, Economy and Environment Program for Southeast Asia; no. 2006-RR9
Abstract: This study investigates the potential impact of two environmental tax regimes on the movement of rural people to China’s cities. The study models the impact of a fuel tax and an output tax on the country’s economy to get a full picture of how they would affect people’s livelihoods and welfare, and how this would, in turn, affect rural-urban migration. The study sheds light on the implications of future environmental taxes and how they would affect urbanization and “rural-urban” migration in China. The study finds that both proposed taxes would discourage the flow of migrants from China’s countryside to its cities. This would therefore exacerbate the current distortions in the country’s labour market, where there is a surplus of rural labour. A comparison of the impact of the two taxes shows the fuel tax to be more efficient in terms of reducing pollution emissions and their associated environmental and health impacts. It also produces less distortion in the rural-urban migration process than the output tax. The study therefore recommends that this would be the preferable policy.
URI: http://hdl.handle.net/10625/46015
ISBN: 978-1-55250-076-7
Project Number: 003591
Project Title: EEPSEA (Economy and Environment Program for South East Asia) - Phase III
Appears in Collections:IDRC Research Results / Résultats de recherches du CRDI
2000-2009 / Années 2000-2009

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