ABSTRACT
Nitrogen oxide (NOx) emissions in Inner Mongolia have been high, and the setting of NOx taxes needs to be optimized. To this end, the article considers the atmosphere's self-cleaning capacity, and since the atmosphere has a certain self-cleaning capacity, making full use of this capacity may lead to a more optimal tax setting. Therefore, the article incorporates the atmosphere's self-cleaning capacity into the standard CGE model, constructs a dynamic model for tax optimization, and simulates the optimization of NOx taxation under different atmospheric self-cleaning capacities. The results show that (1) when NOx emissions exceed the atmospheric self-purifying capacity, the ratio of the decrease in NOx emissions to the increase in NOx taxes is 23.05/100. (2) when NOx emissions are below the atmospheric self-purifying capacity, the ratio of the increase in NOx emissions to the decrease in NOx taxes is 23.68/100.
