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This paper has established the computable general equilibrium (CGE) model to analyze the effect of carbon tax policy on energy consumption and CO2emission in China. The analysis shows that with the increase of CO2mitigation, the level of carbon tax will gradually increase; meanwhile the ad valorem tax rates of coal, petroleum, and natural gas go up as well, and the coal tax rate is the highest among them. In addition, with the increase of CO2emission reductions, the demand for coal, petroleum, natural gas, and thermal power will totally decrease. The demand for coal will drop significantly. The main factor responsible for China’s CO2mitigation is coal. Moreover, the sectors of coal, heavy industries, thermal power, light industries, natural gas, and transportation contribute more to CO2emission reductions, while the other sectors contribute less. [ABSTRACT FROM PUBLISHER]

Background: For effective and practical implementation of border carbon adjustment, it is crucial to determine the carbon content of imports/exports. In this paper we discussed two criteria. One is direct carbon emissions, which accounts for direct emissions generated from production. The other is embodied emissions, which accounts for the total emissions generated directly and indirectly in the supply chain. Results/discussion: By simulating Japan's carbon tax policy and three border tax adjustment measures, we found that Japan's carbon tax policy cannot effectively address domestic mitigation, nor create real threats to carbon leakage and international competitiveness. Conclusion: To design effective and world trade organization-compatible carbon adjustment measures, it is important to ensure that the emissions criteria are identical to the carbon coverage defined by domestic carbon policy. [ABSTRACT FROM AUTHOR]