IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v75y2014icp22-30.html

Advancing the experiment to reality: Perspectives on Shanghai pilot carbon emissions trading scheme

Author

Listed:
  • Wu, Libo
  • Qian, Haoqi
  • Li, Jin

Abstract

Shanghai, as the most advanced mega city in China, has launched a pilot carbon emission trading scheme (SH-ETS) that is designed to achieve a compromise between the domestic context in Shanghai, and a need for national policy appeal. This paper gives an overview of the latest progress of the SH-ETS and sheds some light on the features of key design components, such as the threshold for inclusion, sector coverage, cap setting, allowance allocation and the Monitoring, Reporting and Verification (MRV) system. Based on a concern that manipulative principles and economic dynamics may lead to uncertainties and ultimately influence the emission reduction effect of the scheme, this paper conducts an evaluation of potential uncertainties, such as those caused by changes in patterns of economic growth, strategic trading activities related to the bankable allowances, carbon leakage risks and insufficient MRV capabilities. To advance the experiment to reality, this paper suggests some changes are made to the pilot, which include adjusting the allowance allocation principles to facilitate change in the domestic energy structure, improving the disclosure of emission data to guarantee information symmetry, gauging the carbon leakage risks to strengthen compliance, and introducing risk management for non-regulated players and derivatives products.

Suggested Citation

  • Wu, Libo & Qian, Haoqi & Li, Jin, 2014. "Advancing the experiment to reality: Perspectives on Shanghai pilot carbon emissions trading scheme," Energy Policy, Elsevier, vol. 75(C), pages 22-30.
    • Handle: RePEc:eee:enepol:v:75:y:2014:i:c:p:22-30
    DOI: 10.1016/j.enpol.2014.04.022
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421514002389
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2014.04.022?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Zhang, Zhong Xiang, 2012. "Competitiveness and Leakage Concerns and Border Carbon Adjustments," International Review of Environmental and Resource Economics, now publishers, vol. 6(3), pages 225-287, December.
    2. Fell, Harrison & MacKenzie, Ian A. & Pizer, William A., 2012. "Prices versus quantities versus bankable quantities," Resource and Energy Economics, Elsevier, vol. 34(4), pages 607-623.
    3. repec:dau:papers:123456789/10174 is not listed on IDEAS
    4. Hurwicz, Leonid, 1995. "What is the Coase Theorem?," Japan and the World Economy, Elsevier, vol. 7(1), pages 49-74, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Minxing Jiang & Yanan Li & Feng Wang & Dong‐Xiao Yang, 2025. "Hybrid Policies for Emission Control Under Asymmetric Information: A Comparative Analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 69(4), pages 766-776, October.
    2. Élodie Bertrand, 2006. "La thèse d'efficience du « théorème de Coase ». Quelle critique de la microéconomie ?," Revue économique, Presses de Sciences-Po, vol. 57(5), pages 983-1007.
    3. Webster, Mort & Sue Wing, Ian & Jakobovits, Lisa, 2010. "Second-best instruments for near-term climate policy: Intensity targets vs. the safety valve," Journal of Environmental Economics and Management, Elsevier, vol. 59(3), pages 250-259, May.
    4. William A. Pizer & Brian C. Prest, 2020. "Prices versus Quantities with Policy Updating," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 7(3), pages 483-518.
    5. Martin Zapf & Hermann Pengg & Christian Weindl, 2019. "How to Comply with the Paris Agreement Temperature Goal: Global Carbon Pricing According to Carbon Budgets," Energies, MDPI, vol. 12(15), pages 1-20, August.
    6. Christoph Böhringer & Knut Einar Rosendahl & Halvor Storrøsten, 2021. "Smart hedging against carbon leakage [An overview of the GTAP 9 data base]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 36(107), pages 439-484.
    7. Gomez-Trejos, Felipe, 2025. "Dynamic welfare implications of market-based climate policy under demand uncertainty," Journal of Economic Behavior & Organization, Elsevier, vol. 238(C).
    8. Richard G. Newell & William A. Pizer & Daniel Raimi, 2014. "Carbon Markets: Past, Present, and Future," Annual Review of Resource Economics, Annual Reviews, vol. 6(1), pages 191-215, October.
    9. Christoph Böhringer & Brita Bye & Taran Fæhn & Rosendahl Knut Einar, 2014. "Output-based rebating of carbon taxes in the neighbor’s backyard," Working Papers V-382-15, University of Oldenburg, Department of Economics, revised Jun 2014.
    10. Crettez Bertrand, 2020. "The Coase Theorem, the Nonempty Core, and the Legal Neutrality Principle," Review of Law & Economics, De Gruyter, vol. 16(1), pages 1-16, March.
    11. Hasegawa, Makoto & Salant, Stephen, 2014. "Cap-and-trade programs under delayed compliance: Consequences of interim injections of permits," Journal of Public Economics, Elsevier, vol. 119(C), pages 24-34.
    12. Geng, Kexin & Liang, Zhiyuan & Verhoef, Erik T. & Wang, Yacan, 2025. "Managing uncertain traffic and societal externalities in a road and rail network: Pricing versus Permits," Transportation Research Part B: Methodological, Elsevier, vol. 196(C).
    13. Drechsler, Martin, 2021. "On the cost-effective temporal allocation of credits in conservation offsets when habitat restoration takes takes time and is uncertain," MPRA Paper 108209, University Library of Munich, Germany.
    14. Doda, Baran & Quemin, Simon & Taschini, Luca, 2019. "Linking permit markets multilaterally," Journal of Environmental Economics and Management, Elsevier, vol. 98(C).
    15. Nelson, Douglas R., 2015. "Prospects for Constitutionalization of the WTO," World Trade Review, Cambridge University Press, vol. 14(1), pages 135-153, January.
    16. Olli-Pekka Kuuselaa & Gregory S. Amacher & Kwok Ping Tsang, 2013. "Intensity-Based Permit Quotas and the Business Cycle: Does Flexibility Pay Off?," Research Department Publications IDB-WP-450, Inter-American Development Bank, Research Department.
    17. Samuel Fankhauser & Cameron Hepburn & Jisung Park, 2010. "Combining Multiple Climate Policy Instruments: How Not To Do It," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 1(03), pages 209-225.
    18. John S. Chipman & Guoqiang Tian, 2016. "Detrimental Externalities, Pollution Rights, and the “Coase Theorem”," Studies in Economic Theory, in: Graciela Chichilnisky & Armon Rezai (ed.), The Economics of the Global Environment, pages 473-492, Springer.
    19. Michael Jakob & Jan Christoph Steckel & Ottmar Edenhofer, 2014. "Consumption- Versus Production-Based Emission Policies," Annual Review of Resource Economics, Annual Reviews, vol. 6(1), pages 297-318, October.
    20. Russell, Thomas, 1995. "Aggregation, heterogeneity, and the Coase invariance theorem," Japan and the World Economy, Elsevier, vol. 7(1), pages 105-111, May.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:75:y:2014:i:c:p:22-30. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.