The paper constructs a four nested CGE model containing a carbon trading module and the cost of carbon emissions in CES function of the production module,establishes Social Accounting Matrix( SAM) based on input-output table of China 2007,which is used to analyze and evaluate carbon pricing effects upon economic output,energy consumption and carbon abatement under different scenarios of emission reduction targets,estimates reasonable carbon price intervals,and finally concludes that:(1) At the macrolevel,higher carbon price causes more carbon abatement,more GDP loss,and less energy consumption. Considering the macroeconomic loss and emission effects,the paper identifies the optimal carbon price and reasonable carbon price intervals under different scenarios. It is most reasonable to introduce carbon market under the scenario of 10% carbon abatement target,which can accept heavier price shock(6. 9- 35 /tC) with less economic loss. Referring to decomposition factors of the Kaya equation,the carbon emission reduction effect caused by carbon price is mainly from the macro energy intensity effect and technical progress effect.Introducing carbon price will not only reduce energy consumption but induce a low-carbon energy consumption structure,especially the coal consumption decreased significantly.(2) At the industrial sector level,outputs of all sectors,especially energy sector,will drop,while industrial structure stays unchanged to some extent. The main impact on energy consumption is that the introduction of the carbon price has great effects on the energy sector and the transport sector. Each sector's unit cost of aggregated energy utilization is divided into two parts,the energy own price and cost of carbon emissions. The paper concludes that the unit cost of aggregated energy utilization's change is mainly caused by the cost of carbon emissions. Further,carbon emissions costs of energy intensive sectors are higher,while the reduction rate is relatively high,but the reduction effect is still not significant. The paper recomands implementing the incentive policy such as energy resources tax and transportation fuel tax which will maintain the necessary level of energy prices,and promoting emission reduction in the fields of coal and transportation.
