A Bi-Level Optimization Model for Inter-Provincial Energy Consumption Transfer Tax in China

The serious energy crisis and environmental problems resulting from fossil energy excessive consumption have caused severe challenges to the control of energy consumption and intensity (dual controls) and the sustainable development of China’s economy and society. The current territorial management...

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Main Authors: Lijun Zeng, Wencheng Zhang, Muyi Yang
Format: Article
Language:English
Published: MDPI AG 2023-10-01
Series:Energies
Subjects:
Online Access:https://www.mdpi.com/1996-1073/16/21/7328
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author Lijun Zeng
Wencheng Zhang
Muyi Yang
author_facet Lijun Zeng
Wencheng Zhang
Muyi Yang
author_sort Lijun Zeng
collection DOAJ
description The serious energy crisis and environmental problems resulting from fossil energy excessive consumption have caused severe challenges to the control of energy consumption and intensity (dual controls) and the sustainable development of China’s economy and society. The current territorial management model (TMM) of energy consumption “dual control” needs urgent improvement. Therefore, this study proposes an inter-provincial energy consumption transfer tax model (ECTTM) based on the Stackelberg game and bi-level optimization theory. In this model, the central government is the leader at the upper-level, and provincial governments are the lower-level followers. An optimization algorithm based on NSGA-II was designed to solve this model to obtain the optimal transfer tax rate and provincial energy consumption. The ECTTM aims to maximize the socioeconomic benefits of energy consumption overall and in each province under the premise of achieving the dual control target. The model’s effectiveness and superiority were illustrated through an empirical study of electricity consumption in Shanghai, Zhejiang, Shaanxi, and Guizhou. Compared with the TMM, the socioeconomic benefits under the ECTTM increased by 14.67%, and the electricity consumption per unit of gross domestic product decreased by 12.8%. Policy suggestions on the ECTTM’s implementation are proposed to promote further improvements in dual controls.
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spelling doaj.art-b3c273f286c04ec494cdfcc08bdc402b2023-11-10T15:02:12ZengMDPI AGEnergies1996-10732023-10-011621732810.3390/en16217328A Bi-Level Optimization Model for Inter-Provincial Energy Consumption Transfer Tax in ChinaLijun Zeng0Wencheng Zhang1Muyi Yang2College of Economics and Management, Shandong University of Science and Technology, Qingdao 266590, ChinaCollege of Economics and Management, Shandong University of Science and Technology, Qingdao 266590, ChinaAustralia-China Relations Institute, University of Technology Sydney, Sydney 2007, AustraliaThe serious energy crisis and environmental problems resulting from fossil energy excessive consumption have caused severe challenges to the control of energy consumption and intensity (dual controls) and the sustainable development of China’s economy and society. The current territorial management model (TMM) of energy consumption “dual control” needs urgent improvement. Therefore, this study proposes an inter-provincial energy consumption transfer tax model (ECTTM) based on the Stackelberg game and bi-level optimization theory. In this model, the central government is the leader at the upper-level, and provincial governments are the lower-level followers. An optimization algorithm based on NSGA-II was designed to solve this model to obtain the optimal transfer tax rate and provincial energy consumption. The ECTTM aims to maximize the socioeconomic benefits of energy consumption overall and in each province under the premise of achieving the dual control target. The model’s effectiveness and superiority were illustrated through an empirical study of electricity consumption in Shanghai, Zhejiang, Shaanxi, and Guizhou. Compared with the TMM, the socioeconomic benefits under the ECTTM increased by 14.67%, and the electricity consumption per unit of gross domestic product decreased by 12.8%. Policy suggestions on the ECTTM’s implementation are proposed to promote further improvements in dual controls.https://www.mdpi.com/1996-1073/16/21/7328dual controlstransfer taxbi-level modelsocioeconomic benefits
spellingShingle Lijun Zeng
Wencheng Zhang
Muyi Yang
A Bi-Level Optimization Model for Inter-Provincial Energy Consumption Transfer Tax in China
Energies
dual controls
transfer tax
bi-level model
socioeconomic benefits
title A Bi-Level Optimization Model for Inter-Provincial Energy Consumption Transfer Tax in China
title_full A Bi-Level Optimization Model for Inter-Provincial Energy Consumption Transfer Tax in China
title_fullStr A Bi-Level Optimization Model for Inter-Provincial Energy Consumption Transfer Tax in China
title_full_unstemmed A Bi-Level Optimization Model for Inter-Provincial Energy Consumption Transfer Tax in China
title_short A Bi-Level Optimization Model for Inter-Provincial Energy Consumption Transfer Tax in China
title_sort bi level optimization model for inter provincial energy consumption transfer tax in china
topic dual controls
transfer tax
bi-level model
socioeconomic benefits
url https://www.mdpi.com/1996-1073/16/21/7328
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AT muyiyang abileveloptimizationmodelforinterprovincialenergyconsumptiontransfertaxinchina
AT lijunzeng bileveloptimizationmodelforinterprovincialenergyconsumptiontransfertaxinchina
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