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An Analysis Of China’S Regional Emissions Trading System: Challenges And Lessons, Ronghui (Kevin) Zhou

Bard Center for Environmental Policy

China, the largest carbon dioxide emitter in the world, has faced environmental pressures both internationally and domestically over the last ten years. In early 2011, the Chinese government approved a carbon emissions trading program in seven cities and provinces, and started planning a national emissions trading framework. This thesis reviews these pilot programs and examines the issues that underlie them. Drawing lessons from the U.S. Acid Rain Program, the European Union’s ETS, and California’s CAT, the three largest emissions trading frameworks in the world, I find that: (1) lack of trades in China’s pilot programs is a consequence of permit …