The Sustainable Energy Tax Policy Decision-Making Model Based on Invest Willingness Constraint

To increase the efficiency of exploiting energy resource and confirm the optimum expected energy-saving target and the tax rates implementation scheme of the energy-saving target, an analytical model of tax policy was set up for researching on the sustainable energy for Chinapsilas transportation sector. This model which is based on system dynamics, is taken the effects of the energy price, interest rate, energy tax rate and energy-saving marginal cost into account, and focused on investigating the effects of the finance and tax policy for China energy on the energy-saving program. It is found that the energy tax rates for transportation energy consuming will increase from 28% (in 2005) to 40% (in 2011) and then reduce gradually to 33% (in 2020), assuming the optimum energy-saving target to be 5% annually from 2005 to 2020. The gross transportation energy consuming, the relative CO₂ emissions and the tax-inclusive price of crude oil will increase to 321.8 MT, 977.78 MT and 1533.99 USD/T, respectively, in 2020 from 120 MT, 364.57 MT and 611.78 USD/T, respectively, in 2005. This work is of importance and possible to be the guidance for the design of future finance and tax policy on sustainable energy.