Feasibility Study on Introduction of CO2 Emissions Trading System between Households

2003 ◽  
Vol 38 (0) ◽  
pp. 1-1
Author(s):  
Akio Kondo ◽  
Kanako Yamashita ◽  
Kui Zhou
Keyword(s):  
Co2 Emissions ◽  
Feasibility Study ◽  
Emissions Trading ◽  
Trading System ◽  
Emissions Trading System

scholarly journals China's Rate-Based Approach to Reducing CO2 Emissions: Attractions, Limitations, and Alternatives

2018 ◽  
Vol 108 ◽  
pp. 458-462 ◽  
Author(s):  
Lawrence H. Goulder ◽  
Richard D. Morgenstern
Keyword(s):  
Cost Effectiveness ◽  
Co2 Emissions ◽  
System Performance ◽  
Emissions Trading ◽  
Trading System ◽  
Marginal Costs ◽  
Net Benefits ◽  
Effectiveness And Efficiency ◽  
Emissions Trading System ◽  
The Way

A distinguishing feature of China's recently launched emissions trading system (ETS) is its rate-based structure. This structure governs the way emissions allowances are allocated and the conditions for compliance, and it has important implications for system performance. We show that the rate-based structure implies a wedge between the marginal costs of emissions abatement as perceived by firms and society's marginal costs of abatement. Moving to a mass-based system would eliminate this wedge and thereby yield significant gains in terms of cost-effectiveness and efficiency (aggregate net benefits). We indicate that these gains could be realized while addressing concerns about distributional equity.

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