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Emissions trading in China: A conceptual ‘leapfrog’ approach?

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  • Raufer, Roger
  • Li, Shaoyi

Abstract

China is well aware of the advantages of quantity-based economic instruments (i.e., emissions trading) for domestic pollution control, but pilot studies and experimental programs in Taiyuan, Hong Kong/Guangdong, and other locations have not been successful. This paper proposes a very different type of emissions trading program, designed with Chinese implementation concerns in mind. It has three component parts: (1) a real-time intermittent control system (ICS) strategy designed to address public health concerns in the near term; (2) software-oriented Predictive emissions monitoring systems (PEMS) targeting process parameter (rather than emission) reporting from individual emission sources; and (3) real-time emissions markets responding to the ICS constraint. The technical and political difficulties associated with implementing such a system are recognized as daunting. However, such an approach would ‘leapfrog’ over existing systems, allowing the country to develop a comprehensive air pollution control strategy as economic growth occurs, continuously improving air quality in a cost efficient manner, utilizing both advanced technology and market-based control approaches in a manner consistent with China's unique environmental needs. It would also lay the groundwork for the eventual pricing of CO2 and other greenhouse gases within China.

Suggested Citation

  • Raufer, Roger & Li, Shaoyi, 2009. "Emissions trading in China: A conceptual ‘leapfrog’ approach?," Energy, Elsevier, vol. 34(7), pages 904-912.
    • Handle: RePEc:eee:energy:v:34:y:2009:i:7:p:904-912
    DOI: 10.1016/j.energy.2009.03.011
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    References listed on IDEAS

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    Cited by:

    1. Ma, Runzhuo & Bu, Siqi, 2025. "Evaluation and mitigation of carbon emissions in energy industry," Renewable and Sustainable Energy Reviews, Elsevier, vol. 212(C).
    2. Zhang, Shengling & Wang, Yao & Hao, Yu & Liu, Zhiwei, 2021. "Shooting two hawks with one arrow: Could China's emission trading scheme promote green development efficiency and regional carbon equality?," Energy Economics, Elsevier, vol. 101(C).
    3. Zhang, Suyong & Wang, Chuanxu & Yu, Chao, 2019. "The evolutionary game analysis and simulation with system dynamics of manufacturer's emissions abatement behavior under cap-and-trade regulation," Applied Mathematics and Computation, Elsevier, vol. 355(C), pages 343-355.
    4. Tang, Ling & Wu, Jiaqian & Yu, Lean & Bao, Qin, 2015. "Carbon emissions trading scheme exploration in China: A multi-agent-based model," Energy Policy, Elsevier, vol. 81(C), pages 152-169.
    5. Jiang, Jingjing & Xie, Dejun & Ye, Bin & Shen, Bo & Chen, Zhanming, 2016. "Research on China’s cap-and-trade carbon emission trading scheme: Overview and outlook," Applied Energy, Elsevier, vol. 178(C), pages 902-917.
    6. Suyong Zhang & Chuanxu Wang & Panos M Pardalos, 2021. "Co-evolutionary game of manufacturers’ abatement behavior under carbon tax-subsidy policy [Combating global climate change: why a carbon tax is better response to global warming than cap and trade]," International Journal of Low-Carbon Technologies, Oxford University Press, vol. 16(4), pages 1217-1228.
    7. Jiang, Jingjing & Ye, Bin & Xie, Dejun & Li, Ji & Miao, Lixin & Yang, Peng, 2017. "Sector decomposition of China’s national economic carbon emissions and its policy implication for national ETS development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 855-867.
    8. Gao, Yuning & Li, Meng & Xue, Jinjun & Liu, Yu, 2020. "Evaluation of effectiveness of China's carbon emissions trading scheme in carbon mitigation," Energy Economics, Elsevier, vol. 90(C).
    9. Cong, Rong-Gang & Wei, Yi-Ming, 2010. "Potential impact of (CET) carbon emissions trading on China’s power sector: A perspective from different allowance allocation options," Energy, Elsevier, vol. 35(9), pages 3921-3931.
    10. Lin, Boqiang & Jiang, Zhujun & Zhang, Peng, 2011. "Allocation of sulphur dioxide allowance – An analysis based on a survey of power plants in Fujian province in China," Energy, Elsevier, vol. 36(5), pages 3120-3129.
    11. Zhou, Kaile & Yang, Shanlin, 2016. "Emission reduction of China׳s steel industry: Progress and challenges," Renewable and Sustainable Energy Reviews, Elsevier, vol. 61(C), pages 319-327.

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