The impact of a national carbon price on China. Issue 4 (15th October 2021)

• Record Type: Journal Article
• Authors: Meng, Samuel; Siriwardana, Mahinda; Shen, Ying
• Is Part Of: Journal of the Asia Pacific economy. Volume 26:Issue 4(2021)
• Page Start: 601
• Page End: 618
• Publication Date: 2021-10-15
• Subjects: Carbon price -- energy and resources -- Chinese economy -- CGE modelling; Q43 -- Q54 -- Q58; Asia -- Economic conditions -- 1945- -- Periodicals; Pacific Area -- Economic conditions -- Periodicals; Asia -- Economic integration -- Periodicals; Pacific Area -- Economic integration -- Periodicals; 330.95
• DOI: 10.1080/13547860.2020.1777757
• Languages: English
• ISSNs: 1354-7860

Abstract

Abstract: As the world No.1 emitter of carbon dioxide (CO2 ), China has made up its mind to act on climate change. After trials in six pilot regions- Shenzhen, Shanghai, Beijing, Guangdong, Tianjin, Hubei, and Chongqing- a nationwide ETS has been established and implemented in line with the Thirteenth Five-Year Plan period (2016–2020). This paper simulates the effect of a national ETS in China using GTAP 9.1 database and a revised GTAP-E model. The simulation results show that the ETS is very effective in emissions reduction but will cause a mild economic contraction. At the sectoral level, the energy and resource sectors and energy intensive sectors are to be hit hard while most other sectors are affected negatively but insignificantly.