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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Article
Policy Diffusion of the Emission Trading Scheme in China: Progress and Prospects
Author(s)
Fang-Ting Cheng
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DOI:10.17265/1537-1506/2020.04.001
Affiliation(s)
Institute of Developing Economies, Japan External Trade Organization (IDE-JETRO), Chiba, Japan
ABSTRACT
Chinese
national emissions trading scheme (ETS) of greenhouse gas (GHG) was scheduled
to start simulation trading in the power sector in 2020. Now it is good timing
to review its progress and prospect. This study first examines policy diffusion
in relation ETSs in China and particularly those for CO2 emissions,
including the causes, determinants, process, and impacts. It argues in a
centralized political system with highly and widely differentiated local
circumstances, policy diffusion is progressed through a more complicated
process, presented as a three-tier process in the paper, illustrating how
international arrangement, national jurisdiction, and local administration
interact and influence policy-making in a follower’s jurisdiction. China, which
is now the biggest GHG emitter, has been preparing to establish a national ETS since
2017. So far, eight sub-national governments have introduced ETS pilot programs
to feedback their experiences and to determine best practice for the national
scheme. These eight pilots, especially the relatively successful ones, are
found to be motivated by a competitive relationship that aims to stabilize its
carbon market, which may eventually contribute to the progress of policy
diffusion of the ETS in China.
KEYWORDS
emissions
trading scheme (ETS), greenhouse gas, climate change, EUETS, pilot ETS, Kyoto
Protocol, Paris Agreement
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