Search

With important implications for global climate change mitigation, the development of a cap-and-trade emission trading scheme (ETS) in China is embedded in distinctive political, economic, and institutional contexts and has been attracting increasing attention in recent years. To offer a clear perspective on current research progress, this paper systematically reviews the recent literature on China’s ETS from three main aspects: mechanism design, policy and regional linkages, as well as impact assessment. The current research consensuses are summarized based upon detailed literature analyses and commentaries, and together with observations of international experience and China’s actual condition, the paper provides policy proposals for the development of China’s national ETS during 2016–2020. Finally, several important controversies in the current literature are discussed with regard to the practical demands of China’s ETS development. Five pressing topics that need to be further studied in the coming years are highlighted, including cap setting, allowance allocation among sectors and enterprises, carbon pricing, policy package and unified carbon market construction, as well as ex-ante and ex-post impact assessments. [ABSTRACT FROM AUTHOR]

In an effort to address climate change, in 2013 China launched the world’s largest government-driven carbon emission reduction programme, the National Low Carbon Industrial Parks Pilot Programme (LCIPPP). This paper analyses this newly developed pilot program. To deepen our understanding of the causes and the impact of industrial park CO 2 emissions, we use the STIRPAT (Stochastic Impacts by Regression on Population, Affluence and Technology) model and data from 20 pilot industrial parks involved in the LCIPPP for the period 2012–2016. This study quantitatively evaluates the effect of CO 2 emissions on output, energy structure, energy intensity, industrial structure, R&D intensity, and population change in different regions and nationally through an elasticity coefficient method. The results confirm that an increase in output and energy intensity is a dominant contributor to the growth of CO 2 emissions whereas an increase of the share of tertiary industry and R&D intensity has significant effects on reducing CO 2 emissions. The elasticity of energy intensity and renewable energy consumption on CO 2 emissions in the eastern region of China is the highest, indicating that using renewable energy to reduce CO 2 emissions for the industrial parks is more effective in the eastern region as compared to the central and western regions of the country. The elasticity of population is significantly negative in both the central and western areas while it is positive in eastern part of China, thereby illustrating that promoting labour intensive industries will be an effective way to reduce CO 2 emissions for the industrial parks in China’s central and western regions. Our study reveals that differentiated low carbon development pathways should be adopted. Concrete policy implications for reducing CO 2 emissions are also provided. [ABSTRACT FROM AUTHOR]

Abstract: Renewable energy is one of the possible solutions when addressing climate change. Today, large-scale renewable energy integration needs to include the experience to balance the discrepancy between electricity demand and supply. The electrification of transportation may have the potential to deal with this imbalance and to reduce its high dependence on oil production. For this reason, it is interesting to analyse the extent to which transport electrification can further the renewable energy integration. This paper quantifies this issue in Inner Mongolia, where the share of wind power in the electricity supply was 6.5% in 2009 and which has the plan to develop large-scale wind power. The results show that electric vehicles (EVs) have the ability to balance the electricity demand and supply and to further the wind power integration. In the best case, the energy system with EV can increase wind power integration by 8%. The application of EVs benefits from saving both energy system cost and fuel cost. However, the negative consequences of decreasing energy system efficiency and increasing the CO2 emission should be noted when applying the hydrogen fuel cell vehicle (HFCV). The results also indicate that developing renewable energy is crucial for transportation electrification. [Copyright &y& Elsevier]

Abstract: This paper estimates the affordability of increased energy costs for Chinese companies due to the possible introduction of carbon pricing policies. The data were collected from 121 valid respondents in Taicang, China, using a multiple-bounded discrete choice (MBDC) format. Estimations indicate that a mean of 8.5% in energy cost increase would be acceptable for the surveyed companies on the whole. Companies from chemical and dyeing industries expressed a slightly higher affordability, with the mean of acceptable energy cost increase being 9.8% and 9.4% respectively. Econometric analysis identified two determinants of affordability for companies. One is the current energy price level, having a significant but negative relationship with affordability. The other is the energy management strategies of companies, significantly and positively associated with affordability. Calculations indicate that the mean of affordable energy cost increases for companies roughly equals a carbon price of 60 CNY/t-CO2 (about 9 USD/t-CO2). This result may be used as a referendum during the development of carbon tax policy and the establishment of a domestic carbon emissions trading scheme in China from the perspective of individual companies. [Copyright &y& Elsevier]