Comparison of the potential cost savings from carbon emissions trading for the manufacturing industries in three regions of China.

The Chinese government launched its implementation plan for a carbon emissions trading mechanism in seven pilot regions in 2011. In this study, we simulate and compare the potential cost savings of emissions trading in the Chinese manufacturing industries of three selected pilot regions, namely Beijing, Chongqing and Guangdong, based on the estimates of industry-specific CO2shadow prices. The characteristics of production technology are also examined. The empirical results indicate that the cost-effectiveness of a 1-ton trade in Beijing, on average, is the largest, followed by Chongqing and Guangdong, but Guangdong would be the largest beneficiary in terms of total trade. [ABSTRACT FROM PUBLISHER]