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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]

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]

Abstract: Since 1996 China became a net importer of crude oil, energy security has faced lots of supply risks and the issues of security on energy using have become more and more acute. The Chinese government has taken a series of policies and measures and enacted relevant laws to guarantee energy security and mitigate global climate change. What changes has energy security in China experienced in these years? What impacts has the implementation of energy security and climate protection policies brought to China’s energy security? This paper has established the evaluation indicators and model of the energy security index. The model evaluation results show that: (1) in 1996–2009, the index of China’s energy supply security presented an uptrend and then downtrend. For example, it presented a rapid uptrend in 1996–2001, a quick downtrend in 2002–2005, and a slow downtrend in 2006–2009. The energy supply security index in 2009 was kept basically the same as that in 1996. (2) In 1996–2009, the index of China’s energy using security presented a fluctuated uptrend. For example, it presented a fluctuating uptrend in 1996–2002, and dropped to a relative low level in 2003–2005, and then quickly rose in 2006–2009. (3) The policy of “China’s energy-saving and emission reduction” has slowed down the decreasing speed of the index of energy supply security and also conspicuously improved the index of energy using security, so that the composite index of China’s energy security presented an uptrend, then downtrend and finally uptrend. The policy of “China’s energy-saving and emission reduction” has been successfully conducted, proving that a win–win result can be achieved between climate change protection and China’s energy security. [Copyright &y& Elsevier]