Abstract:
Climate actions have focused on CO2 mitigation and only some studies of China consider non-CO2 greenhouse gases (GHGs), which account for nearly 18% of gross GHG emissions. The economy-wide impact of mitigation covering CO2 and non-CO2 GHGs in China, has not been comprehensively studied and we develop a multi-sector dynamic model to compare the impact of CO2-only mitigation with a multi-GHG mitigation policy that also price non-CO2 GHGs. We find that the multi-GHG approach significantly reduces the marginal abatement cost and economic loss to reach the same level of GHG emissions (measures as 100 year global warming potential) compared to a CO2-only scenario. By 2060, multi-gas mitigation can reduce the tax rate by 15.44% and improve real gross domestic product (GDP) by 0.41%. The aggregate gain brought by multi-GHG mitigation are robust to various pathways and but vary across periods and sectors.
