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Cao, J. and Zeng, J. (2010) The Incidence of Carbon Tax in China. Working Paper Presented at Lincoln Institute China Program Annual May Conference, Cambridge, 17 May 2010.

has been cited by the following article:

• TITLE: The Optimal Gasoline Tax for China

  AUTHORS: C.-Y. Cynthia Lin, Jieyin Zeng

  KEYWORDS: Gasoline Tax, China

  JOURNAL NAME: Theoretical Economics Letters, Vol.4 No.4, April 24, 2014

  ABSTRACT: Gasoline-powered vehicles produce many negative externalities including congestion, air pollution, global climate change, and accidents. A gasoline tax is perhaps the best policy to jointly address these externalities. This paper calculates the optimal gasoline tax for China. Using a model developed by Parry and Small [1] 08D0C9EA79F9BACE118C8200AA004BA90B02000000080000000E0000005F005200650066003300380035003600300030003200350032000000 [2] 08D0C9EA79F9BACE118C8200AA004BA90B02000000080000000E0000005F005200650066003300380035003600300030003200350036000000 , we calculate the optimal adjusted Pigovian tax in China to be $1.58/gallon which is 2.65 times more than the current level. Of the externalities incorporated in this Pigovian tax, the congestion costs are taxed the most heavily, at $0.82/gallon, followed by local air pollution, accident externalities, and finally global climate change.