15.5 Conclusion
Through analysis of policies, market performance, and compliance of each ETS
pilot, schemes are constantly being refined in an adaptive fashion.
In this chapter, we analyzed the market performances of ETS pilots in China and
calculated panel data for 30 provincial regions from 2008 to 2017 to examine the
impacts of ETS policy on carbon emission reduction. Using a DID model, we show
that ETS policy has had a positive effect on pilot regions after a trial period of
6 years. Controlling for GDP, population, the ratio of secondary industry, and
technology level reveals that development of the economy has a positive impact
on decreasing both carbon intensity and energy intensity. China aims to reduce its
carbon intensity by 40% by 2020 and 80% by 2050. The 2020 goal was reached in
2017, and the goal for 2050 may also be achieved early. Technology level also
shows a positive impact on decreasing both carbon emissions and energy consumption, and ETS policy can be implemented in combination with technology improvements to reduce carbon emissions more effectively.
The pilot markets and national market will continue to operate in parallel for a
certain period. The pilot projects have certainly provided useful experiences to
inform design of the national market. Important considerations for building the
national carbon market include equality between industries in different regions;
efficiency of carbon prices; information symmetry between central and local governments and between government and enterprises; the balance of government
intervention; and making use of market mechanisms.
References
Beijing Environment Exchange (2020) Trading information. http://www.cbeex.com.cn/. Accessed
9 April 2020
Chang K, Chen R, Julien C (2018) Market fragmentation, liquidity measures, and improvement
perspectives from China’s emissions trading scheme pilots. Energy Econ 75:249–260
Chongqing Emission Exchange (2020) Trading information. https://tpf.cqggzy.com/. Accessed
9 April 2020
Dong J, Ma Y, Sun H (2016) From pilot to the National Emissions Trading Scheme in China:
international practice and domestic experiences. Sustainability 8:522
Feng S, Stephen H, Liu Y, Zhang K, Yang J (2018) Towards a national ETS in China: cap-setting
and model mechanisms. Energy Econ 73:43–52
Fujian Emission Exchange (2020) Trading information. https://carbon.hxee.com.cn/. Accessed
9 April 2020
Guangdong Emission Exchange (2020) Trading information. http://www.cnemission.com/.
Accessed 9 April 2020
Hubei Emission Exchange (2020) Trading information. http://www.hbets.cn/. Accessed 9 April
2020
IPCC (2006) IPCC Guidelines for National Greenhouse Gas Inventories Volume 2 Energy. https://
www.ipcc-nggip.iges.or.jp/public/2006gl/vol2.html. Accessed 9th April 2020
15 Design and Analysis of a Carbon Emissions Trading System for Low-Carbon. . .
287
Through analysis of policies, market performance, and compliance of each ETS
pilot, schemes are constantly being refined in an adaptive fashion.
In this chapter, we analyzed the market performances of ETS pilots in China and
calculated panel data for 30 provincial regions from 2008 to 2017 to examine the
impacts of ETS policy on carbon emission reduction. Using a DID model, we show
that ETS policy has had a positive effect on pilot regions after a trial period of
6 years. Controlling for GDP, population, the ratio of secondary industry, and
technology level reveals that development of the economy has a positive impact
on decreasing both carbon intensity and energy intensity. China aims to reduce its
carbon intensity by 40% by 2020 and 80% by 2050. The 2020 goal was reached in
2017, and the goal for 2050 may also be achieved early. Technology level also
shows a positive impact on decreasing both carbon emissions and energy consumption, and ETS policy can be implemented in combination with technology improvements to reduce carbon emissions more effectively.
The pilot markets and national market will continue to operate in parallel for a
certain period. The pilot projects have certainly provided useful experiences to
inform design of the national market. Important considerations for building the
national carbon market include equality between industries in different regions;
efficiency of carbon prices; information symmetry between central and local governments and between government and enterprises; the balance of government
intervention; and making use of market mechanisms.
References
Beijing Environment Exchange (2020) Trading information. http://www.cbeex.com.cn/. Accessed
9 April 2020
Chang K, Chen R, Julien C (2018) Market fragmentation, liquidity measures, and improvement
perspectives from China’s emissions trading scheme pilots. Energy Econ 75:249–260
Chongqing Emission Exchange (2020) Trading information. https://tpf.cqggzy.com/. Accessed
9 April 2020
Dong J, Ma Y, Sun H (2016) From pilot to the National Emissions Trading Scheme in China:
international practice and domestic experiences. Sustainability 8:522
Feng S, Stephen H, Liu Y, Zhang K, Yang J (2018) Towards a national ETS in China: cap-setting
and model mechanisms. Energy Econ 73:43–52
Fujian Emission Exchange (2020) Trading information. https://carbon.hxee.com.cn/. Accessed
9 April 2020
Guangdong Emission Exchange (2020) Trading information. http://www.cnemission.com/.
Accessed 9 April 2020
Hubei Emission Exchange (2020) Trading information. http://www.hbets.cn/. Accessed 9 April
2020
IPCC (2006) IPCC Guidelines for National Greenhouse Gas Inventories Volume 2 Energy. https://
www.ipcc-nggip.iges.or.jp/public/2006gl/vol2.html. Accessed 9th April 2020
15 Design and Analysis of a Carbon Emissions Trading System for Low-Carbon. . .
287