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Benefits and costs to China of three different climate treaties

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  • Vennemo, Haakon
  • Aunan, Kristin
  • Jianwu, He
  • Tao, Hu
  • Shantong, Li

Abstract

There are currently several ideas on the table for a climate treaty post-Kyoto. We consider the impact on China of three ideas: a cap on the CO2 intensity, a cap on the CO2 level, and a cap on the CO2 intensity in key sectors. We find that a cap on the CO2 intensity gives large environmental co-benefits to China on aggregate, but there are significant negative effects for rural households. Assuming these are addressed the country could reduce its CO2 intensity by a third before costs outweigh environmental co-benefits. By contrast a cap confined to the manufacturing and power sector does not bring substantial co-benefits to China.

Suggested Citation

  • Vennemo, Haakon & Aunan, Kristin & Jianwu, He & Tao, Hu & Shantong, Li, 2009. "Benefits and costs to China of three different climate treaties," Resource and Energy Economics, Elsevier, vol. 31(3), pages 139-160, August.
    • Handle: RePEc:eee:resene:v:31:y:2009:i:3:p:139-160
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    2. Bretschger, Lucas & Zhang, Lin, 2017. "Carbon policy in a high-growth economy: The case of China," Resource and Energy Economics, Elsevier, vol. 47(C), pages 1-19.
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    5. Haakon Vennemo & Jianwu He & Shantong Li, 2014. "Macroeconomic Impacts of Carbon Capture and Storage in China," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 59(3), pages 455-477, November.
    6. Zhao, Xiaoli & Yin, Haitao, 2011. "Industrial relocation and energy consumption: Evidence from China," Energy Policy, Elsevier, vol. 39(5), pages 2944-2956, May.
    7. Beck, Marisa & Rivers, Nicholas & Yonezawa, Hidemichi, 2016. "A rural myth? Sources and implications of the perceived unfairness of carbon taxes in rural communities," Ecological Economics, Elsevier, vol. 124(C), pages 124-134.
    8. Fang, Xingming & Qu, Zitang & Sun, Chuanwang & Wu, Chengkuan & Wei, Jing, 2022. "Public attitude and policy selection of future energy sustainability in China: Evidence of the survey of the college students," Energy Policy, Elsevier, vol. 165(C).
    9. Fan, Ying & Wu, Jie & Xia, Yan & Liu, Jing-Yu, 2016. "How will a nationwide carbon market affect regional economies and efficiency of CO2 emission reduction in China?," China Economic Review, Elsevier, vol. 38(C), pages 151-166.
    10. Anping Chen & Nicolaas Groenewold, 2013. "Regional Effects in China of an Emissions-Reduction Policy: Tax v. Subsidy," ERSA conference papers ersa13p1275, European Regional Science Association.
    11. Wei Xie & Ning Li & Chunhua Li & Ji-dong Wu & Aijun Hu & Xiaolin Hao, 2014. "Quantifying cascading effects triggered by disrupted transportation due to the Great 2008 Chinese Ice Storm: implications for disaster risk management," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 70(1), pages 337-352, January.
    12. Niu, Shuwen & Ding, Yongxia & Niu, Yunzhu & Li, Yixin & Luo, Guanghua, 2011. "Economic growth, energy conservation and emissions reduction: A comparative analysis based on panel data for 8 Asian-Pacific countries," Energy Policy, Elsevier, vol. 39(4), pages 2121-2131, April.
    13. Eskeland, Gunnar S. & Rive, Nathan A. & Mideksa, Torben K., 2012. "Europe’s climate goals and the electricity sector," Energy Policy, Elsevier, vol. 41(C), pages 200-211.
    14. Niu, Shuwen & Zhang, Xin & Zhao, Chunsheng & Niu, Yunzhu, 2012. "Variations in energy consumption and survival status between rural and urban households: A case study of the Western Loess Plateau, China," Energy Policy, Elsevier, vol. 49(C), pages 515-527.
    15. Dai, Hancheng & Masui, Toshihiko & Matsuoka, Yuzuru & Fujimori, Shinichiro, 2011. "Assessment of China's climate commitment and non-fossil energy plan towards 2020 using hybrid AIM/CGE model," Energy Policy, Elsevier, vol. 39(5), pages 2875-2887, May.
    16. Jie Wu, Ying Fan, Yan Xia, 2016. "The Economic Effects of Initial Quota Allocations on Carbon Emissions Trading in China," The Energy Journal, International Association for Energy Economics, vol. 0(China Spe).

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