A Comparative Study of Carbon Pricing Policies in China and the Scandinavian Countries: Lessons for Effective Climate Change Mitigation with a Focus on Sweden

Abstract

Under the Paris Agreement's goal of limiting global warming to 1.5 degrees by 2100, nations are taking steps to reduce carbon emissions. Carbon pricing is a popular policy instrument to mitigate carbon emissions. This paper presents a comparative analysis of carbon pricing policies in China and Scandinavian countries (Norway, Denmark, and Sweden), focusing on their impacts on the transportation, industrial, and building sectors. The study highlights that both regions have successfully implemented carbon pricing policies, combining carbon taxes with emissions trading systems, resulting in significant emissions reductions and decoupling of economic growth from greenhouse gas emissions. In the transportation sector, carbon pricing policies have driven the adoption of electric vehicles and cleaner fuels. In the industrial sector, these policies have led to investments in energy efficiency, fuel switching, and low-carbon technologies. In the building sector, carbon pricing has encouraged energy efficiency improvements and the adoption of low-carbon heating technologies. The paper underscores the importance of integrating carbon pricing policies with other energy and environmental policies, fostering public engagement, and designing robust monitoring, reporting, and verification systems to ensure their effectiveness in promoting low-carbon development.