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From global public good to regional economic services: A comparative study on the development of climate change as economic goods in China and the EU

Listed author(s):
  • Li, Ying Ming
  • Schwarze, Reimund

Economics is an important perspective of growing interest to analyze the climate change issues, especially, when we concentrate on the development of market-based instruments at the regional level. Starting from the fundamental characteristics of economic goods, the research put forwards a definition of climate change goods and, furthermore, builds a model of climate change policies in three transitional phases: from global public goods to regional private goods. Based on this model, the paper analyzes the development of climate change strategies in China and the EU, specifically considering the climate policies in Central and Eastern European economies in transition. While international climate negotiations remain important, the development of market-based instruments at the regional development is an important issue of transformation and social learning. From our comparative study, the transitional phase will last long period for all regions. Furthermore, the phase of a mature, perfectly functioning market, will never be reached because some public good elements of climate change will remain. There are many common issues faced by the EU and China, from a transitional perspective such as national harmonisation versus regional differentiation, and integration of top-down versus bottom-up strategies, and so on. Mutual learning on capacity development in China and the EU will be beneficial even if linking of climate change goods' markets in China and the EU will only be possible after 2020 due to divergent backgrounds.

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Paper provided by Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS) in its series UFZ Discussion Papers with number 12/2013.

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Date of creation: 2013
Handle: RePEc:zbw:ufzdps:122013
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  1. Marechal, Kevin, 2007. "The economics of climate change and the change of climate in economics," Energy Policy, Elsevier, vol. 35(10), pages 5181-5194, October.
  2. Stavins, Robert N., 2003. "Experience with market-based environmental policy instruments," Handbook of Environmental Economics,in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 1, chapter 9, pages 355-435 Elsevier.
  3. Carsten A. Holz, 2004. "China's Statistical System in Transition: Challenges, Data Problems, and Institutional Innovations," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 50(3), pages 381-409, 09.
  4. Scrieciu, S. Şerban & Barker, Terry & Ackerman, Frank, 2013. "Pushing the boundaries of climate economics: critical issues to consider in climate policy analysis," Ecological Economics, Elsevier, vol. 85(C), pages 155-165.
  5. Midttun, Atle & Chander, Ishwar, 1998. "The political economy of energy use and pollution: the environmental effects of East-European transition to market economy," Energy Policy, Elsevier, vol. 26(13), pages 1017-1029, November.
  6. Clarke, Leon & Weyant, John & Edmonds, Jae, 2008. "On the sources of technological change: What do the models assume," Energy Economics, Elsevier, vol. 30(2), pages 409-424, March.
  7. Jon Skjærseth & Jørgen Wettestad, 2007. "Is EU enlargement bad for environmental policy? Confronting gloomy expectations with evidence," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 7(3), pages 263-280, September.
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