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Why Did China Design Its Emission Trading System Different than the EU?
- 1 Shekou International School
- 2 Jinan Foreign Language School International Center
* Author to whom correspondence should be addressed.
Abstract
Emission trading systems (ETS) contribute to economic efficiency by facilitating emission reductions where it is cheapest to achieve them. Polluters who would find it costly to reduce their emissions can buy emission allowances from polluters that can abate at lower costs. Through the comparison between the carbon trading market of the EU and China and an overview of each market, including key strategies and market performance, the reasons why China's designed its carbon trading market most suitable for its economy, along with the edges and costs of each market will be analyzed. This study indicates that China's current ETS design is beneficial for its current economic development; however, this design limits technological developments in renewable energy and transformations in economic structure. This will impact China's economic development in the future.
Keywords
the comparison between the EU and China's carbon trading market
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Cite this article
Xu,L.;Zhang,M. (2023). Why Did China Design Its Emission Trading System Different than the EU?. Advances in Economics, Management and Political Sciences,13,76-81.
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