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The potential for green growth and structural transformation in China

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  • Justin Y. Lin
  • Jintao Xu

Abstract

China is the largest and most rapidly growing emerging economy in the world. Its dynamic growth is accompanied by severe pollution problems and large emissions of carbon dioxide (CO2)—it now has the largest annual emissions in the world. China will also be one of the main victims of climate change, should no action be taken to shift the global economy to cleaner modes of production and consumption. It is therefore in China’s self-interest to take action to reduce CO2 in the very near term. However, doing so would require a fundamental change in economic growth patterns and a transformation of economic structure. This paper argues that such changes are feasible, and further that strong and active government interventions to facilitate these changes are justified. The paper explores the policy options, including in relation to carbon pricing and innovation policy, and the major challenges to implementing such structural reform.

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  • Justin Y. Lin & Jintao Xu, 2014. "The potential for green growth and structural transformation in China," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 30(3), pages 550-568.
    • Handle: RePEc:oup:oxford:v:30:y:2014:i:3:p:550-568.
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    File URL: http://hdl.handle.net/10.1093/oxrep/gru030
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    Cited by:

    1. Li, Jun & Hamdi-Cherif, Meriem & Cassen, Christophe, 2017. "Aligning domestic policies with international coordination in a post-Paris global climate regime: A case for China," Technological Forecasting and Social Change, Elsevier, vol. 125(C), pages 258-274.
    2. Mealy, Penny & Teytelboym, Alexander, 2022. "Economic complexity and the green economy," Research Policy, Elsevier, vol. 51(8).
    3. Mealy, Penny & Teytelboym, Alexander, 2017. "Economic Complexity and the Green Economy," INET Oxford Working Papers 2018-03, Institute for New Economic Thinking at the Oxford Martin School, University of Oxford, revised Feb 2019.

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