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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 Energy/emission intensity indicators measure the relationship between economic development and climate change. These intensity indicators are preferentially used in assessment criteria for mitigation goals in places such as China. This paper investigates the driving factors of changes in the national CO 2 emission intensity and their contributions to reductions at the sector level in China from 2002 to 2012 using multiplicative structural decomposition analysis (SDA) and attribution analysis. Both Leontief and Ghosh input-output models are used in the study. The empirical results indicate: 1) the energy intensity effect is the main driver that decreases the aggregate emission intensity from both the demand and supply sides; 2) structural effects, such as the energy structure effect and domestic Ghosh structure effect, promote the increase in aggregate emission intensity principally; and 3) to a large extent, sector "smelting and pressing of metals", "manufacture of non-metallic mineral products" and "chemical industry" are the top three sectors that contribute to the negative energy intensity effect. Ultimately, several discussions and conclusions associated with the empirical results, result stability and research extensibility are presented. Highlights • Both Leontief and Ghosh models were adopted to study China's CO 2 intensity. • Multiplicative decomposition was applied to study the intensity changes in 2002–2012. • Energy intensity effect was the major drivers to reduce China's emission intensity. • The structural effects as a whole contributed to the increase of emission intensity. • The domestic allocation structure can be adjusted and optimized preferentially. [ABSTRACT FROM AUTHOR]