China's Unconventional Nationwide CO₂ Emissions Trading System: The Wide-Ranging Impacts of an Implicit Output Subsidy

Abstract

At least one co-author has disclosed a financial relationship of potential relevance for this research. Further information is available online at http://www.nber.org/papers/w26537.ack NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.

Credit Systems for Bycatch and Biodiversity Conservation

“…When a vessel has some control over the denominator, such as target catch in a bycatch-target catch ratio or input such as bycatch per day or per gear such as a FAD or number of bycatch animals per ton of target catch, the credit system is a relative credit system. Each compliance period, the regulator multiplies the total allowable bycatch by each vessel's bycatch ratio to obtain the allocation to each vessel (such quotas or limits in the denominator in relative systems are sometimes called intensity targets or rate-based standards in the environmental pollution literature: Weishaar, 2007;Nentjes and Woerdman, 2012;Helfand, 2013;Goulder et al, 2019).…”

“…Three basic types of credit systems are defined in this paper, based on systems that were all originally developed to manage environmental pollution (Fischer, 2001(Fischer, , 2003Montero, 2002;Boom and Dijkstra, 2009;Sovacool, 2011;Nentjes and Woerdman, 2012;Goulder et al, 2019). The first is direct regulation made flexible through a cap on Total Allowable 1 Bycatch can be broadly defined as unwanted species or individuals caught during fishing operations (Hall, 1996;Squires et al, 2021).…”

The EU ETS and its companion policies: any insight for China's ETS?

“…9 Recent reforms of the electricity sector, however, have allowed for market-determined production prices. According toGoulder et al (2019), in 2018, almost one-third of the electricity consumed in China was sold at market-clearing prices.terms of use, available at https://www.cambridge.org/core/terms. https://doi.org/10.1017/S1355770X20000595 Downloaded from https://www.cambridge.org/core.…”

“…Other possible specificities of developing economies, which may have implications for the design or implementation of ETSs, include poor statistical data, lack of policy coordination, ineffective law enforcement, etc. Arguably, the specific design of ETSs for developing economies is an underdeveloped research area(Boute, 2017;Acworth et al, 2018; De Gouvello et al, 2019;Goulder et al, 2019).…”

“…Indeed, as the generation mix of electricity supply significantly varies within China, the application of a single uniform benchmark would result in disproportionate compliance costs for certain regions. AsGoulder et al (2019) show, however, the application of multiple benchmarks comes at a cost in terms of the reduced cost-effectiveness of the system.9 Recent reforms of the electricity sector, however, have allowed for market-determined production prices. According toGoulder et al (2019), in 2018, almost one-third of the electricity consumed in China was sold at market-clearing prices.…”