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This document explains and demonstrates how energy tax policy influencing energy substitution in China. As China is trying to seek into the efficient and clean energy substitution, being an important means of Micro-constraints and Macro-regulations, energy tax policies will plays more and more important role in this process. The most important reason of energy substitution progressing slowly is that energy tax policy goals are not clear. Therefore, the tax policies imposed on fossil energy constraint is not enough. On this basis, we propose some recommendations to address these issues.

The Mechanism Research and Empirical Analysis on How Energy Tax Policy Influence Energy Substitution: Concurrently Case Study from China