IDEAS home Printed from https://ideas.repec.org/a/eee/resene/v31y2009i3p139-160.html
   My bibliography  Save this article

Benefits and costs to China of three different climate treaties

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0928-7655(09)00015-3
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Fisher-Vanden, Karen & Jefferson, Gary H. & Liu, Hongmei & Tao, Quan, 2004. "What is driving China's decline in energy intensity?," Resource and Energy Economics, Elsevier, vol. 26(1), pages 77-97, March.
    2. Wang, Yan & Xu, Dianqing & Wang, Zhi & Zhai, Fan, 2004. "Options and impact of China's pension reform: a computable general equilibrium analysis," Journal of Comparative Economics, Elsevier, vol. 32(1), pages 105-127, March.
    3. Glomsrod, Solveig & Taoyuan, Wei, 2005. "Coal cleaning: a viable strategy for reduced carbon emissions and improved environment in China?," Energy Policy, Elsevier, vol. 33(4), pages 525-542, March.
    4. Pizer, William, 2005. "The Case for Intensity Targets," Discussion Papers dp-05-02, Resources For the Future.
    5. Vennemo, Haakon & Aunan, Kristin & He, Jianwu & Hu, Tao & Li, Shantong & Rypd3al, Kristin, 2008. "Environmental impacts of China's WTO-accession," Ecological Economics, Elsevier, vol. 64(4), pages 893-911, February.
    6. Aunan, Kristin & Berntsen, Terje & O'Connor, David & Persson, Therese Hindman & Vennemo, Haakon & Zhai, Fan, 2007. "Benefits and costs to China of a climate policy," Environment and Development Economics, Cambridge University Press, vol. 12(03), pages 471-497, June.
    7. Nazrul Islam & Erbiao Dai & Hiroshi Sakamoto, 2006. "Role of TFP in China's Growth ," Asian Economic Journal, East Asian Economic Association, vol. 20(2), pages 127-159, June.
    8. Randall Lutter, 2000. "Developing Countries' Greenhouse Emmissions: Uncertainty and Implications for Participation in the Kyoto Protocol," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 93-120.
    9. Aunan, Kristin & Fang, Jinghua & Vennemo, Haakon & Oye, Kenneth & Seip, Hans M., 2004. "Co-benefits of climate policy--lessons learned from a study in Shanxi, China," Energy Policy, Elsevier, vol. 32(4), pages 567-581, March.
    10. George J. Borjas, 2003. "The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market," NBER Working Papers 9755, National Bureau of Economic Research, Inc.
    11. David O’Connor & Fan Zhai & Kristin Aunan & Terje Berntsen & Haakon Vennemo, 2003. "Agricultural and Human Health Impacts of Climate Policy in China: A General Equilibrium Analysis with Special Reference to Guangdong," OECD Development Centre Working Papers 206, OECD Publishing.
    12. Alwyn Young, 2003. "Gold into Base Metals: Productivity Growth in the People's Republic of China during the Reform Period," Journal of Political Economy, University of Chicago Press, vol. 111(6), pages 1220-1261, December.
    13. Garbaccio, Richard F. & Ho, Mun S. & Jorgenson, Dale W., 1999. "Controlling carbon emissions in China," Environment and Development Economics, Cambridge University Press, vol. 4(04), pages 493-518, October.
    14. George J. Borjas, 2003. "The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market," The Quarterly Journal of Economics, Oxford University Press, vol. 118(4), pages 1335-1374.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. 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.
    3. Lucas Bretschger & Lin Zhang, 2014. "Going beyond tradition: Carbon policy in a high-growth economy: The case of China," CER-ETH Economics working paper series 14/201, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    4. 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.
    5. 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.
    6. 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.
    7. Yang, Guangfei & Sun, Tao & Wang, Jianliang & Li, Xianneng, 2015. "Modeling the nexus between carbon dioxide emissions and economic growth," Energy Policy, Elsevier, vol. 86(C), pages 104-117.
    8. Anping Chen & Nicolaas Groenewold, 2014. "The regional economic effects of a reduction in carbon emissions and an evaluation of offsetting policies in China," Papers in Regional Science, Wiley Blackwell, vol. 93(2), pages 429-453, June.
    9. 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.
    10. 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.
    11. Zhao, Xiaoli & Yin, Haitao, 2011. "Industrial relocation and energy consumption: Evidence from China," Energy Policy, Elsevier, vol. 39(5), pages 2944-2956, May.
    12. 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.
    13. 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.
    14. 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.
    15. 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).

    More about this item

    Keywords

    Climate Commitment Treaty China;

    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:resene:v:31:y:2009:i:3:p:139-160. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/inca/505569 .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.