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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]

Carbon Capture and Storage (CCS) has been viewed as an emission abatement option with great potential in China as coal has dominated China's energy consumption. China has already started to pay attention to CCS, as well as to the proposed the concept of ‘CCUS’ (which adds CO 2 Utilization into the chain of capture, transportation and storage). However, CCS is still in the early stages of its technological development, and the high cost, with several internal and external uncertainties make the role that CCS can play in China's future emission reduction unclear. From the perspective of general equilibrium analysis, this paper introduces CCS into a regional energy–economy–environment integrated assessment model, and makes a comprehensive evaluation of CCS's potential for future development and contribution to emission abatement in China. At climate policy level, the potential contribution of CCS in emission abatement has been evaluated against different future emission constraint scenarios in China. At technological level, the effects of endogenous learning and policy incentives on CCS have been investigated, and the substitution capacities of CCS and Non-hydro renewables to fossil energy have been discussed, as well as their technology penetration rates. Furthermore, the impact of CO 2 utilization on the development of CCS has also been discussed. [ABSTRACT FROM AUTHOR]