*1.2. Contributions and Paper Structure*

Although existing papers focus on carbon neutrality, little in the literature studies the economic cost of carbon neutrality by applying carbon pricing [40–42]. Thus, this paper wants to fill the knowledge gap, for exploring the impact of carbon neutrality by emission trading and carbon tax from the perspective of GDP loss, energy structure, the compensation of the total factor productivity, and commodity price. The specific contributions and findings of the paper are shown below:


The rest of the paper is organized as follows: Section 2 is the scenario design, which is the paper's exogenous assumptions. Section 3 introduces the paper's methodology, including the introduction of the computable general equilibrium (CGE) model used in the article, the dynamic method, and the data source. Section 4 presents the results of carbon neutrality impacts during 2020–2060 and discusses the results. Section 5 further assumes that the increase in TFP makes the process of carbon neutrality economically neutral (no impact on GDP), then presents and discusses the results. Section 6 discusses the key results found in the paper and compares them with other examples in the literature. Section 7 concludes the paper's results and proposes policy implications.
