China’s New National Carbon Market

Author:

Pizer William A.1,Zhang Xiliang2

Affiliation:

1. Duke University, Durham, NC 27708 (email: )

2. Tsinghua University, Beijing, China (email: )

Abstract

On December 19, 2017, China announced the official start of its national emissions trading system (ETS) construction program. When fully implemented, this program will more than double the volume of worldwide carbon dioxide emissions covered by either tax or tradable permit policy. Many of program's design features reflect those of China's pilot programs but differ from those of most emissions trading programs in the United States and Europe. This paper explains the context and design of China's new carbon market, discusses implications and possible modifications, and suggests topics for further research.

Publisher

American Economic Association

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