Econonomics of Energy and Environmental Policy

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China’s National Carbon Dioxide Emission Trading System: An Introduction

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China is on the verge of launching what is expected to be the world�s largest carbon dioxide(CO2) emissions trading system (ETS). When fully implemented, this program will likelydouble the share of the world�s greenhouse gases covered by cap and trade.1 Under currentplans, the facilities covered by the program will eventually account for over 50 percent of China�sGHG emissions. Internationally, much seems to be riding on this program. If perceivedas successful, it could serve as a model for other countries wishing to implement an ETS. Ifviewed as a failure, it could impede the adoption of emissions trading programs in many partsof the world.
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JEL Codes:P18: Energy; Environment, Q54: Climate; Natural Disasters and Their Management; Global Warming, N75: Economic History: Transport, Trade, Energy, Technology, and Other Services: Asia including Middle East

DOI: 10.5547/2160-5890.6.2.lgou

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Published in Volume 6, Number 2 of The Quarterly Journal of the IAEE's Energy Economics Education Foundation.


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