The Impact of Carbon Neutrality on China's Macro-Economy

Abstract: This paper preliminarily discusses the impact of carbon-neutrality on China’s macro-economy, and finds that: first, low-carbon investment and the resulting technological progress are the main factors to promote economic growth inthe process of decarbonization transformation; the stranded brown assets, rising costs and unemployment in the process oftransformation will have a negative impact on the economy. Second, based on the above impact mechanism, whether thecarbon-neutrality policy promotes or hinders the economic growth is affected by a country’s industrial structure, resource endowment, import and export structure and other factors. Finally, the characteristics of China’s economic structure determine that China is more likely to obtain long-term growth benefits in decarbonization transformation.

Key words: carbon-neutrality; economic growth; decarbonization transformation; climate policy

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