Comprehensive Evaluation of the Effects of Reform of the Resource Tax in Western China by Input-Occupancy-Output Analysis

Resource tax reform is imperative in western China. However, research concerning effects of the adjustment of the resource tax rate in western China is far from adequate. In this paper, an energy Input-Occupancy-Output table in 2004 for western China has been established by using improved energy input-output table compilation method, and the effects on regional and national economy caused by adjustments of the resource tax rate in the case of coal are calculated. Meanwhile, the influences on employment and energy consumption of the increased resource taxation were analyzed. The empirical results show that a coal resource tax rate set to 5% of the sales revenue would only have a minor impact on the fluctuation of production prices and consumption prices, as well as generate a strong pulling and driving effect on increasing GDP, boost the employment and reduce the energy consumption per GDP.