Climate Policy In China Research Articles

Fertility rate, fertility policy, and climate policy: A case study in China

Although population growth plays a vital role in driving anthropogenic climate change, fertility impact on achieving mitigation target is usually overlooked in literature. This paper attempts to narrow the research gap by employing a Computable General Equilibrium (CGE) model to analyze the interrelations among fertility rate, fertility policy, and climate policy in China. The model results show that fertility rate negatively correlates with GDP and emissions because higher fertility induces more labor for childcare and thus crowds out labor for work. The three-child policy raises fertility intention; it does not unidirectionally influence the effects of the emission trading scheme (ETS) on employment and GDP, but it increases ETS emission abatement. Technological progress increases GDP and decreases emissions; the three-child policy strengthens technological impact on GDP but weakens technological impact on emissions. Hence, technological progress benefits emission mitigation; the three-child policy enhances economic benefits but impairs emission abatement of technological progress.

Management Practices and Climate Policy in China

Management Practices and Climate Policy in China

A news-based climate policy uncertainty index for China

Climate policies can have a significant impact on the economy. However, these policies have often been associated with uncertainty. Quantitative assessment of the socioeconomic impact of climate policy uncertainty is equally or perhaps more important than looking at the policies themselves. Using a deep learning algorithm—the MacBERT model—this study constructed indices of Chinese climate policy uncertainty (CCPU) at the national, provincial and city levels for the first time. The CCPU indices are based on the text mining of news published by a set of major newspapers in China. A clear upward trend was found in the indices, demonstrating increasing policy uncertainties in China in addressing climate change. There is also evidence of clear regional heterogeneity in subnational indices. The CCPU dataset can provide a useful source of information for government actors, academics and investors in understanding the dynamics of climate policies in China. These indices can also be used to investigate the empirical relationship between climate policy uncertainty and other socioeconomic factors in China.

Reducing road transport emissions for climate policy in China and India

Reducing road transport emissions for climate policy in China and India

Book review: Fuzuo Wu, Energy and Climate Policies in China and India: A Two-Level Comparative Study

Fuzuo Wu, Energy and Climate Policies in China and India: A Two-Level Comparative Study (Cambridge: Cambridge University Press, 2018), XV + 314 pp. US$ 30.99 (Paperback), ISBN: 1108420400

Climate Policy in China: the Procedural Component

Climate Policy in China: the Procedural Component

Estimating the CO2 marginal abatement cost and implications for climate policies in China’s industrial sector: A firm-level analysis

ABSTRACT This paper presents an in-depth analysis of the Marginal Abatement Cost Curve (MACC) for CO2 of China’s industrial sector. Leveraging comprehensive firm-level panel data spanning the period 2011–2015, we employ a parameterized directional output distance function to estimate the shadow price of CO2. By doing so, we derive the marginal abatement cost for individual firms across different years, which provides crucial insights into two fundamental aspects: first, the variation in shadow prices as indicators of the economic efficiency of existing climate policies; and second, the carbon price levels necessary to achieve CO2 mitigation targets in the future. Furthermore, we conduct scenario simulations to assess the potential industrial output loss resulting from forthcoming carbon policies, such as the European Union’s Carbon Border Adjustment Mechanism (CBAM). Our findings underscore the necessity for a considerably higher tax rate to stimulate pollution reduction in order to meet the desired emission targets.

Climate policy and financial system stability: evidence from Chinese fund markets

ABSTRACT The impacts of climate policies on the global financial system have aroused wide attention all over the world. Fund markets are an important part of the financial system and play a crucial role in the stability of the financial system. In this paper, the impacts of climate policies on fund markets are evaluated from direct and indirect risk contagion channels using the data of Chinese ordinary stock funds and partial stock hybrid funds during 2007–2020. Risk contagion indicates that a fund's selling of stocks causes the stock price to fall, causing asset losses to other funds holding the same stocks. We construct a risk contagion model based on common asset holdings of funds. The analysis of direct risk exposure of funds to climate policy in China shows that five climate-policy-relevant sectors account for more than half of the total value of shareholdings. The climate risk stress-test indicates that ignoring the indirect risk contagion channel significantly underestimates the adverse effects of and climate policies on fund markets. More stringent, short-term climate targets and earlier implementation of climate policies helps to mitigate otherwise drastic changes required in energy markets in China to achieve a 2°C long-term target, and reduces the adverse effects of climate policies on the fund market. Furthermore, the impact of climate policies on different investment funds shows significant differences, leading to winners and losers. The losers are funds that adopt a high-carbon investment strategy, while winners are funds adopting a green investment strategy.

Central–local governance gaps: the evolving differentiation of climate policies in China

Central–local governance gaps: the evolving differentiation of climate policies in China

Fuzuo, Wu. Energy and Climate Policies in China and India: A Two-Level Comparative Study

Fuzuo, Wu. Energy and Climate Policies in China and India: A Two-Level Comparative Study

China's climate and energy policy: at a turning point?

How have 30 years of development in energy and climate policies influenced long-term trends in China and what does this imply for future climate policies? To answer the question, this article examines three decades of energy and climate policies in China. By providing an overarching review, it contributes new and updated research on drivers behind long-term climate policies and whether China’s long-term emissions trend can be broken by placing greater emphasis on innovation, technology and low-carbon development. Importantly, it analyses the most recent policy developments in China, such as the likely effects of China’s recent 2060 carbon neutrality goal. We conclude that after the Paris Agreement, the biggest policy change has been technological innovation in the power and transport sector. China has prioritized measures, laws and policies for developing renewable energy, especially solar and wind. China has also embraced the ‘green growth’ approach for responding to the challenges of climate change. These efforts have yielded results, and China has emerged as a world leader in renewable energy. However, there is still a long way to go. The upcoming 14th five-year plan will be critical for accelerating the energy transition, including setting a cap on coal in the national energy-transition strategy.

Management Practices and Climate Policy in China

Cap-and-trade program for CO2 emissions are being considered by governments worldwide to address the climate change challenge. The success of such a market-based climate policy at minimizing overall abatement cost and fostering low-carbon investment and innovation depends on participants fully understanding the trade-offs between using, selling or banking a permit. We provide the first empirical evidence on how management quality moderates responses to carbon pricing, by analyzing on firms that participated in two of China's regional pilot emissions trading schemes (ETS), located in the city of Beijing and Hubei province. We collect new data by interviewing plant managers or lead engineers at 216 randomly selected firms, and combine them with financial, patent and energy consumption data for each firm. We show that well-managed firms have on average higher productivity, which has been documented in previous research. In addition, low-carbon innovation measures elicited from managers are strongly positively associated with green patenting.These results strengthen the credibility of our interview data. We also investigate whether carbon trading affects energy use of regulated firms. We estimate that the launch of the pilot ETS in Beijing has reduced consumption of coal and electricity by treated firms relative to control firms, but this effect is statistically significant only for well-managed firms. Our estimates imply that the overall reduction in coal use following the introduction of the pilot ETS would have been four times smaller if firms with above-median managers had been managed by below-median managers.

Forward-looking assessment of the GHG abatement cost: Application to China

Evaluation of abatement costs is critical in setting reduction goals and devising climate policy. However, reliable forward-looking assessment of the short-term effects of climate policy remains a major challenge. Using panel data of 30 Chinese provinces during 1997–2015, we first estimate the marginal CO2 abatement costs using a novel data-driven approach, convex quantile regression. Based on the marginal abatement cost estimates and China's plans regarding carbon intensity reduction and economic growth, we present a forward-looking assessment of the abatement costs for Chinese provinces for 2016–2020. Our main finding is that all the Chinese provinces have a negative abatement cost, which means these provinces can benefit from an increase in the absolute level of CO2 emissions despite the constraint on carbon intensity. The magnitudes of economic benefits exhibit a significant regional disparity because some provinces can increase more CO2 emissions than others. However, there is still costly carbon intensity abatement relative to a counterfactual where the provinces meet their economic growth targets but in the absence of the intensity reduction constraints. Policy implications have been proposed to enhance the efficiency and fairness of climate policy in China.

Energy and Climate Policies in China and India: A Two-Level Comparative Study. By Wu, Fuzuo. 2019. New York, NY: Cambridge University Press.

<i>Energy and Climate Policies in China and India: A Two-Level Comparative Study</i>. By Wu, Fuzuo. 2019. New York, NY: Cambridge University Press.

Mercury Benefits of Climate Policy in China: Addressing the Paris Agreement and the Minamata Convention Simultaneously.

National commitments under the Paris Agreement on climate change interact with other global environmental objectives, such as those of the Minamata Convention on Mercury. We assess how mercury emissions and deposition reductions from national climate policy in China under the Paris Agreement could contribute to the country's commitments under the Minamata Convention. We examine emissions under climate policy scenarios developed using a computable general equilibrium model of China's economy, end-of-pipe control scenarios that meet China's commitments under the Minamata Convention, and these policies in combination, and evaluate deposition using a global atmospheric transport model. We find climate policy in China can provide mercury benefits when implemented with Minamata policy, achieving in the year 2030 approximately 5% additional reduction in mercury emissions and deposition in China when climate policy achieves a 5% reduction per year in carbon intensity (CO2 emissions 9.7 Gt in 2030). This corresponds to 63 Mg additional mercury emissions reductions in 2030 when implemented with Minamata Convention policy, compared to Minamata policy implemented alone. Climate policy provides emissions reductions in sectors not considered under the Minamata Convention, such as residential combustion. This changes the combination of sectors that contribute to emissions reductions.

Identifying trade-offs and co-benefits of climate policies in China to align policies with SDGs and achieve the 2 °C goal

The Paris Agreement set long-term global climate goals to pursue stabilization of the global mean temperature increase at below 2 °C (the so-called 2 °C goal). Individual countries submitted their own short-term targets, mostly for the year 2030. Meanwhile, the UN’s sustainable development goals (SDGs) were designed to help set multiple societal goals with respect to socioeconomic development, the environment, and other issues. Climate policies can lead to intended or unintended consequences in various sectors, but these types of side effects rarely have been studied in China, where climate policies will play an important role in global greenhouse gas emissions and sustainable development is a major goal. This study identified the extent to which climate policies in line with the 2 °C goal could have multi-sectoral consequences in China. Carbon constraints in China in the 2Deg scenario are set to align with the global 2 °C target based on the emissions per capita convergence principle. Carbon policies for NDC pledges as well as policies in China regarding renewables, air pollution control, and land management were also simulated. The results show that energy security and air quality have co-benefits related to climate policies, whereas food security and land resources experienced negative side effects (trade-offs). Near-term climate actions were shown to help reduce these trade-offs in the mid-term. A policy package that included food and land subsidies also helped achieve climate targets while avoiding the adverse side effects caused by the mitigation policies. The findings should help policymakers in China develop win–win policies that do not negatively affect some sectors, which could potentially enhance their ability to take climate actions to realize the global 2 °C goal within the context of sustainable development.

Market-based Climate Policy in China? The Case of Emissions Trading Systems

China recognises the need to reduce carbon emissions in order to avoid negative consequences from climate change in the future. Therefore, the Chinese government initiated seven emissions trading system (ETS) pilots in 2013 and began to develop China’s national ETS in 2017. However, Chinese efforts to implement ETS have encountered legal, institutional and political issues that must be solved so that a national ETS could help to mitigate emissions in China.

Population health impacts of China's climate change policies

Rapid and wide-ranging reductions in greenhouse gas emissions are required to meet the climate targets agreed upon at the 2015 Paris climate conference. There will be significant transition risks for health, livelihoods, and ecosystems associated with large-scale mitigation, but also opportunities. The aim of this study was to investigate the impacts, positive and negative, of climate policies on population health in China. We review the Intended Nationally Determined Contribution (INDC) that China took to the Paris meeting, link commitments in the INDC to national planning documents relevant to environment and health, and search the literature for Chinese publications on health trade-offs and synergies. Synergies are evident in the measures taken to reduce local air pollution in China: controls on coal burning have materially improved local air quality and benefited health. But there may be risks to health also, depending on how policies are implemented and what safeguards are provided. To date most assessments of the health impacts of climate policies in China have been modelling studies. We recommend work of this kind is complemented by observational research to identify unexpected impacts and vulnerabilities. It will become even more important to undertake this work as emission reductions accelerate to meet the Paris climate targets.

Rural residents’ understanding and willingness to pay higher prices for mitigation against global warming in China

PurposeStudies addressing rural residents’ understanding of global warming and their willingness to pay higher prices to mitigate it are very limited. The purpose of this study is to examine the general understanding and attitudes of rural residents in China regarding global warming and their willingness to pay higher prices to mitigate it.Design/methodology/approachThis study surveyed 1,185 rural residents in three counties of coastal, middle and western China. Multivariate regression analysis was conducted to reveal the relationships between the willingness to pay higher prices to mitigate global warming and influencing factors.FindingsThe majority of respondents had heard of global warming; however, their knowledge of the phenomenon and its causes was very limited. Most respondents admitted the likelihood of risks from global warming. Although most respondents thought they had an obligation to mitigate global warming, only a small percentage of them were willing to pay higher prices to address the problem; the unwillingness of respondents to pay higher prices to mitigate global warming may have been associated with their low income and perceived inability to handle the cost, externalisation of responsibility and causes and lack of knowledge of how to affect it.Originality/valueThis study examines the general understanding and attitudes of rural residents in China regarding global warming and their willingness to pay higher prices to mitigate it. The research is conducive to climate change communications and the implementation of climate policies in China’s rural areas.

Performance evaluation of climate policies in China: A study based on an integrated assessment model

China has the world’s highest levels of carbon dioxide (CO2) emissions, and its adoption of optimal measures to address climate change is extremely important. In this article, we assess the performance of various Chinese policies aimed at addressing climate change in terms of cost effectiveness, cost-benefit efficiency, and their contribution to a reduction in emissions with a new single-region model, DEMETER-CCPE. Our analysis shows that the performance of these Chinese policies strongly depends on the principles and indicators used in the evaluation. When climate-specific cost indicators are considered, the mixed policy performs best in terms of cost reduction. When cost-efficiency indicators are used, a single policy performs better to some extent. From the perspective of evaluating the contribution to emissions reduction, the development of non-fossil-fuel-based energy technologies offers the greatest opportunity for reducing emissions in a mixed-policy scenario. Finally, this article study possible ‘burden’ and ‘free-rider’ scenarios in order to explore the effect of different levels of joint actions between China and the rest of the world (ROW) on a performance evaluation of policies to address climate change.