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Jia, Zhijie; Wen, Shiyan; Lin, Boqiang
Applied energy, 11/2021, Letnik: 302Journal Article
•A dynamic recursive multi-sector CGE model is applied for comprehensive analysis.•COVID-19 has a negative impact first on economy, then on energy system.•The COVID-19 reduces oil demand and price, limiting the development of renewables.•We should adjust the price gap between fossil and renewable in post-COVID-19 era. In 2020, the world experienced several significant events, including the COVID-19 pandemic and the collapse of international crude oil prices. Both have a great impact on a sustainable economy. Taking China as an example, we use a computable general equilibrium model with multi-sectors and multi-households and consider six different scenarios to simulate and evaluate the aggregate impacts of the pandemic and crude oil prices. We divide the impact of the pandemic into the changes of factor input and the changes of consumer preference and find that the decline of factor input is the leading cause of the economic downturn. The sharp drop in crude oil prices has a significant negative impact on the low-carbon economy. Although the pandemic has led to a decline in global carbon emissions, it is only because of the economic downturn. The epidemic situation and the change of oil price have double impacts on the economy, especially the sustainable economy. Adjusting the price gap between fossil energy and renewable energy (e.g., more stringent carbon pricing) and appropriate tax cuts on residents may be effective ways to alleviate the impact, which should be one of the environmental policies in the post-COVID-19 era.
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JCR | SNIP | JCR | SNIP | JCR | SNIP | JCR | SNIP |
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in: SICRIS
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