is to “green” consumption, the NIESR study emphasises the importance of how the tax revenue is used. While some revenue should be deployed to protect low-income households, much of the carbon tax revenue should be invested in rolling out new technologies, minimising the cost to society of the transition.
China’s dramatic economic development means it relies more on imported oil and gas rather than its own coal deposits Today, China’s dramatic economic development means it relies more on imported oil and gas rather than its own coal deposits. The recent NIESR study shows that, as a result, the reduction in import prices from a global carbon tax would almost offset the costs of greening the Chinese economy. The changed energy profile means that while China remains reluctant to be tied into international agreements, it is beginning to transition to a greener model.
The prospect of ever-increasing prices of fossil fuels has driven investment in better clean technologies, from cheaper more efficient solar panels to electric cars