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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: 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]

Abstract: China’s economy has been on a solid fast growth track since 1978. The economy expanded by an average annual rate of about 10% during the last thirty years. That is more than triple the average growth rate of the world economy during the same period. The rapid economic development has been associated with growing energy consumption and carbon dioxide (CO2) emission. Although the first phase of the Kyoto Protocol exempts China from reducing its own CO2 output, China, as the first or second largest CO2 emission country, is facing growing international political pressure. As a responsible big country, China will almost certainly have to respond to climate change in the future. China is entering unexpected fast development period of the industrialization, urbanization and motorization, in which large-scale new infrastructures will be built. This provides great opportunity to plan for longer-term CO2 mitigation—the infrastructures built today have a long life time and are not easy to upgrade the technologies involved, and decisions made now will have a major impact on energy utilization mode and CO2 mitigation technology option in coming years. Carbon Capture and Storage (CCS), as an option in the portfolio of mitigation actions to combat climate change, is expected to have far-reaching implications for China. This paper (1) explores the strategic significance of CCS for China by making an extreme scenario analysis of Chinese power sector in 2030; (2) provides an overview of the recent CCS activities in China; and (3) identifies the major challenges with respect to CCS development in China and put forwards immediate strategies. [Copyright &y& Elsevier]