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  4. May 2018
  5. Institutions and Emissions Trading in China

Institutions and Emissions Trading in China

  • Valerie Jean Karplus
AEA Papers and Proceedings
vol. 108, May 2018
(pp. 468-72)
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Abstract

Variation in the extent of state control in industry may affect China's efforts to establish a national emissions trading system (ETS) capable of supporting the implementation of the country's CO2 intensity reduction goals through 2030. This paper examines interactions between state control and an ETS, and identifies a tension in its design in China: state-controlled firms most likely to comply with the system may operate in the least market-oriented settings. Establishing a comprehensive and cost-effective ETS may require addressing potential barriers to participation and compliance in the domestic private sector, while increasingly exposing state-controlled firms to market forces.

Citation

Karplus, Valerie Jean. 2018. "Institutions and Emissions Trading in China." AEA Papers and Proceedings, 108: 468-72. DOI: 10.1257/pandp.20181030

Additional Materials

JEL Classification

  • O13 Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
  • O14 Industrialization; Manufacturing and Service Industries; Choice of Technology
  • P28 Socialist Systems and Transitional Economies: Natural Resources; Energy; Environment
  • P31 Socialist Enterprises and Their Transitions
  • P37 Socialist Systems and Transitional Economies: Legal Institutions; Illegal Behavior
  • Q54 Climate; Natural Disasters and Their Management; Global Warming
  • Q58 Environmental Economics: Government Policy