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On the basis of available data, we have built an eco-conscious socioeconomic framework model including 36 sectors by means of environmental value-added theory and developed energy and carbon dioxide (CO2) emission related scenarios in order to evaluate comprehensively the effect of carbon tax on CO2 emission curtailment and introduction of suitable alternative energy in China. An optimal carbon tax rate is derived endogenously.

Integrated Evaluation of Optimal Carbon Tax Policy by Means of Environmental Value-added in China