Carbon Tax, Subsidy, and Emission Reduction: Analysis Based on DSGE Model

Table 1

Calibration results of static parameters.

Parameter	Definition	Value
	Household discount factor	0.97
	Relative risk aversion elasticity of consumption	0.8
	Inverse of the Frisch elasticity of labor supply	0.2
	Household environment preference coefficient	1
	Capital depreciation rate	0.11
	Elasticity of output with respect to capital	0.4
	Elasticity of output with respect to labor	0.45
	Carbon emission factor per unit of output	0.16
	Coefficient of mitigation costs scale	0.2
	Emission reduction effort index	1.8
	Initial environment quality	1
	Environment self-purification capacity	0.1
	Government efficiency in pollution control	1.16