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Institutions and Emissions Trading in China

Author

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  • Valerie Jean Karplus

Abstract

Variation in the extent of state control in industry may affect China's efforts to establish a national emissions trading system (ETS) capable of supporting the implementation of the country's CO2 intensity reduction goals through 2030. This paper examines interactions between state control and an ETS, and identifies a tension in its design in China: state-controlled firms most likely to comply with the system may operate in the least market-oriented settings. Establishing a comprehensive and cost-effective ETS may require addressing potential barriers to participation and compliance in the domestic private sector, while increasingly exposing state-controlled firms to market forces.

Suggested Citation

  • Valerie Jean Karplus, 2018. "Institutions and Emissions Trading in China," AEA Papers and Proceedings, American Economic Association, vol. 108, pages 468-472, May.
    • Handle: RePEc:aea:apandp:v:108:y:2018:p:468-72
    Note: DOI: 10.1257/pandp.20181030
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    File URL: https://www.aeaweb.org/doi/10.1257/pandp.20181030
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    Citations

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    Cited by:

    1. Stefano Carattini & Eli P. Fenichel & Alexander Gordan & Patrick Gourley, 2020. "For want of a chair: Teaching price formation using a cap and trade game," The Journal of Economic Education, Taylor & Francis Journals, vol. 51(1), pages 52-66, January.
    2. Jianguo Zhou & Xuejing Huo & Xiaolei Xu & Yushuo Li, 2019. "Forecasting the Carbon Price Using Extreme-Point Symmetric Mode Decomposition and Extreme Learning Machine Optimized by the Grey Wolf Optimizer Algorithm," Energies, MDPI, vol. 12(5), pages 1-22, March.

    More about this item

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • P31 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions
    • P37 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Legal
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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