A comparison of the European
Union (EU) and China’s emission trading schemes (ETS) is made and we analyze a field survey
concerning the pilot ETS in China. The comparison shows that EU’s carbon market
is relative mature, given that EU has adopted more flexible and market based
measures for its ETS. In China there are more governmental interventions to
make the ETS work, but there is lack of a legal foundation and market measures
for China’s ETS. The survey yielded information on the attitudes of the
participants towards ETS and the linkages between carbon price and the actions
by ETS participants to diminish carbon emissions. The survey results show that
most participants are willing to participate in ETS and that the ETS does have
positive impact on the reduction of CO2 emission. However China is
not yet well prepared to move from seven small pilot ETS to a nationwide ETS,
since relevant laws and regulations are not well formulated. This also explains
why there are much governmental interventions for the 7 pilot ETS in China. The
survey result shows that the existing carbon price in China is too low to
mobilise industrial investment in abatement technology.
References
[1]
Van Dijk, M.P. (2015) Measuring Eco Cities, Comparing European and Asian Experiences: Rotterdam versus Beijing. Asia Europe Journal, 13, 75.
https://doi.org/10.1007/s10308-014-0405-7
[2]
ADB (2016) Emissions Trading Schemes and Their Linking: Challenges and Opportunities in Asia and the Pacific. Asian Development Bank, Manilla, 17-52.
[3]
EU (2014) The EU ETS System. European Union, Brussels,1-26.
[4]
Wang, P., Dai, H.C., Ren, S.Y., Zhao, D.Q. and Masui, T. (2015) Achieving Copenhagen Target through Carbon Emission Trading: Economic Impacts Assessment in Guangdong Province of China. Energy, 79, 212-227.
https://doi.org/10.1016/j.energy.2014.11.009
[5]
Dormady, N.C. (2014) Carbon Auctions, Energy Markets & Market Power: An Experimental Analysis. Energy Economics, 44, 468-482.
https://doi.org/10.1016/j.eneco.2014.03.013
[6]
Zhang, M.S., Liu, Z.L., van Dijk, M.P. (2017) CO2 Emission Trading in China, Can the Market Become a National One, Four Years after Creating Seven Local Markets? Unofficial Publication, Beijing, 17-18.
[7]
Liao, Z., Zhu, X. and Shi, J. (2014) Case Study on Initial Allocation of Shanghai Carbon Emission Trading Based on Shapley Value. Journal of Cleaner Production, 103, 338-344. https://doi.org/10.1016/j.jclepro.2014.06.045
[8]
Ermolieva, T., Ermoliev, Y., Fischer, G., Jonas, M., Makowski, M. and Wagner, F. (2011) Carbon Emission Trading and Carbon Taxes under Uncertainties. Climate Change, 103, 277-289. https://doi.org/10.1007/s10584-010-9910-x
[9]
Duan, M.S., Pang, T. and Zhang X.L. (2014) Review of Carbon Emissions Trading Pilots in China. Energy & Environment, 25, 527-549.
https://doi.org/10.1260/0958-305X.25.3-4.527
[10]
Guo J., Zhang, Z.K. and Meng L. (2012) China’s Provincial CO2 Emissions Embodied in International and Interprovincial Trade. Energy Policy, 42, 486-497.
https://doi.org/10.1016/j.enpol.2011.12.015
[11]
Jiang, J., Ye, B. and Ma, X.M. (2014) The Construction of Shenzhen’s Carbon Emission Trading Scheme. Energy Policy, 75, 17-21.
https://doi.org/10.1016/j.enpol.2014.02.030
[12]
Feng, K., Davies, S.J., Sun, L.X., Li, X., Guan, D.B., Liu, W.D. and Liu, Z. (2013) Outsourcing CO2 within China. Proceedings of the National Academy of Science (PNAS), 110, 11654-11659. https://doi.org/10.1073/pnas.1219918110
[13]
Wu, L.B., Qian, H.Q. and Li, J. (2014) Advancing the Experiment to Reality: Perspectives on Shanghai Pilot Carbon Emissions Trading Scheme. Energy Policy, 75, 22-30. https://doi.org/10.1016/j.enpol.2014.04.022
[14]
Jotzo, F. (2013) Emissions Trading in China: Principles, Design Options and Lessons from International Practice. Working Paper No. 1303, Centre for Climate Economics and Policy (CCEP), Crawford School of Public Policy, Australian National University, Canberra.
