Abstract

A carbon emission permit trading system (ETS) is purported to give China a useful tool to realize its Paris commitment. Since 2014, seven pilot projects of ETS have been established to test its validity. If valid, China would scale up these projects to the national level by the end of 2017. This paper provides an independent assessment of these projects against the premises established for the pilots and future ETS system in China. Synthetic control method is used to evaluate the efficacy of these projects in carbon emission reductions. We find that success is limited and uneven among these projects, which warrants further examination of their underlying causes. We therefore suggest cautions in project expansion at the national level, and provide policy recommendations for improvement.

Contents

Carbon Trading Scheme in China.pdf