Equity and emissions trading in China
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10584_2015_Article_1516.pdf
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986.88 KB
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Checksum (MD5)
0706ec11da1653f4e96457232a2c65dc
Author(s)
Zhang, Da
Springmann, Marco
Karplus, Valerie Jean
Date Issued
October 2015
Journal
Climatic Change
Publisher
Springer Netherlands
Citation
Zhang, Da, Marco Springmann, and Valerie J. Karplus. “Equity and Emissions Trading in China.” Climatic Change 134.1–2 (2016): 131–146.
Version
Author's final manuscript
Abstract
China has embarked on an ambitious pathway for establishing a national carbon market in the next 5–10 years. In this study, we analyze the distributional aspects of a Chinese emissions-trading scheme from ethical, economic, and stated-preference perspectives. We focus on the role of emissions permit allocation and first show how specific equity principles can be incorporated into the design of potential allocation schemes. We then assess the economic and distributional impacts of those allocation schemes using a computable general equilibrium model with regional detail for the Chinese economy. Finally, we conduct a survey among Chinese climate-policy experts on the basis of the simulated model impacts. The survey participants indicate a relative preference for allocation schemes that put less emissions-reduction burden on the western provinces, a medium burden on the central provinces, and a high burden on the eastern provinces. Most participants show strong support for allocating emissions permits based on consumption-based emissions responsibilities.
MIT Department
Sloan School of Management
Terms of Use
Creative Commons Attribution-Noncommercial-Share Alike
Persistent DSpace Link
DOI of Published Version
https://doi.org/10.1007/s10584-015-1516-x
