Chapter 15
Design and Analysis of a Carbon Emissions
Trading System for Low-Carbon
Development in China
Yishu Ling, Weisheng Zhou, and Xuepeng Qian
Abstract Tackling climate change is one of the most significant challenges for
human beings today. China, the largest emitter of CO 2 , has taken carbon pricing as a
market-oriented policy for reducing its emissions. At the end of 2017, the National
Development and Reform Commission (NRCD) announced the implementation of a
national carbon trading scheme (ETS) in the power sector, which has initiated eight
pilot projects since 2013. What have the pilot projects devoted to low-carbon
development? What is the present status of its emissions reduction schemes, and
what issues remain to be solved? This study first provides a comprehensive analysis
of each pilot project from the perspectives of policies, transactions, and market
performance. Then, we explore the impact of China’s pilot ETSs on low-carbon
development with targets of carbon emissions, carbon per person carbon intensity,
energy consumption, and energy intensity from 2008 to 2017 using a panel data
applying a difference-in-differences method. The main conclusions are as follows:
(1) overall, China’s pilot ETSs have a powerful impact on low-carbon development.
(2) Pilot projects have offered lessons that could be learned and applied to the
national trading market.
Y. Ling
Graduate School of Policy Science, Ritsumeikan University, Ibaraki, Osaka, Japan
e-mail: ps0290ih@ed.ritsumei.ac.jp
W. Zhou (*)
College of Policy Science, Ritsumeikan University, Ibaraki, Osaka, Japan
e-mail: zhou@sps.ritsumei.ac.jp
X. Qian
College of Asia Pacific Studies, Ritsumeikan Asia Pacific University, Beppu, Oita, Japan
e-mail: qianxp@apu.ac.jp
© Springer Nature Singapore Pte Ltd. 2021
W. Zhou et al. (eds.), East Asian Low-Carbon Community,
https://doi.org/10.1007/978-981-33-4339-9_15
273
Design and Analysis of a Carbon Emissions
Trading System for Low-Carbon
Development in China
Yishu Ling, Weisheng Zhou, and Xuepeng Qian
Abstract Tackling climate change is one of the most significant challenges for
human beings today. China, the largest emitter of CO 2 , has taken carbon pricing as a
market-oriented policy for reducing its emissions. At the end of 2017, the National
Development and Reform Commission (NRCD) announced the implementation of a
national carbon trading scheme (ETS) in the power sector, which has initiated eight
pilot projects since 2013. What have the pilot projects devoted to low-carbon
development? What is the present status of its emissions reduction schemes, and
what issues remain to be solved? This study first provides a comprehensive analysis
of each pilot project from the perspectives of policies, transactions, and market
performance. Then, we explore the impact of China’s pilot ETSs on low-carbon
development with targets of carbon emissions, carbon per person carbon intensity,
energy consumption, and energy intensity from 2008 to 2017 using a panel data
applying a difference-in-differences method. The main conclusions are as follows:
(1) overall, China’s pilot ETSs have a powerful impact on low-carbon development.
(2) Pilot projects have offered lessons that could be learned and applied to the
national trading market.
Y. Ling
Graduate School of Policy Science, Ritsumeikan University, Ibaraki, Osaka, Japan
e-mail: ps0290ih@ed.ritsumei.ac.jp
W. Zhou (*)
College of Policy Science, Ritsumeikan University, Ibaraki, Osaka, Japan
e-mail: zhou@sps.ritsumei.ac.jp
X. Qian
College of Asia Pacific Studies, Ritsumeikan Asia Pacific University, Beppu, Oita, Japan
e-mail: qianxp@apu.ac.jp
© Springer Nature Singapore Pte Ltd. 2021
W. Zhou et al. (eds.), East Asian Low-Carbon Community,
https://doi.org/10.1007/978-981-33-4339-9_15
273