Consumption-Based Adjustment of Emissions-Intensity Targets: An Economic Analysis for China’s Provinces

Springmann, Marco; Zhang, Da; Karplus, Valerie J.

doi:10.1007/s10640-014-9809-5

Cited by 21 publications

(16 citation statements)

References 32 publications

(45 reference statements)

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“…8 From a political perspective, adopting allocation schemes which generate large interregional transfers could be challenging. An analysis of the regional emissions-intensity targets of the China's Twelfth Five-Year Plan has shown that the eastern provinces currently shoulder a relatively modest reduction burden compared to that of the central and western provinces (see Supplementary Section S11 and Springmann et al 2015). The potentially negative consequences for the eastern provinces in those scenarios that are preferred by most survey participants may hinder adoption given the political and economic influence that those provinces have.…”

Section: Resultsmentioning

confidence: 99%

“…We consider two criteria based on emissions intensity, the environmental reward and environmental subsidy criteria (see, e.g., Eyckmans and Finus 2004), due to China's focus on emissions intensity as a policy target. We also add a consumer-pays criterion to account for the significant regional separation that exists within China between production and consumption activities and their associated CO 2 emissions (Meng et al 2011;Guo et al 2012;Feng et al 2013;Springmann et al 2015).…”

Section: Permit Allocation and Equity Criteriamentioning

confidence: 99%

“…To specify the consumer-pays criterion, we calculate consumption-based emissions using a multiregional input-output approach that accounts for the emissions embodied in China's interregional trade (see Springmann et al 2015). (2012), we group Guangxi as a western province due to its economic similarities with western provinces.…”

Section: Permit Allocation Across China's Provincesmentioning

confidence: 99%

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Equity and emissions trading in China

2015

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China has embarked on an ambitious pathway for establishing a national carbon market in the next 5-10 years. In this study, we analyze the distributional aspects of a Chinese emissions-trading scheme from ethical, economic, and stated-preference perspectives. We focus on the role of emissions permit allocation and first show how specific equity principles can be incorporated into the design of potential allocation schemes. We then assess the economic and distributional impacts of those allocation schemes using a computable general equilibrium model with regional detail for the Chinese economy. Finally, we conduct a survey among Chinese climate-policy experts on the basis of the simulated model impacts. The survey participants indicate a relative preference for allocation schemes that put less emissionsreduction burden on the western provinces, a medium burden on the central provinces, and a high burden on the eastern provinces. Most participants show strong support for allocating emissions permits based on consumption-based emissions responsibilities.

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Section: Resultsmentioning

confidence: 99%

Section: Permit Allocation and Equity Criteriamentioning

confidence: 99%

Section: Permit Allocation Across China's Provincesmentioning

confidence: 99%

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Equity and emissions trading in China

2015

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“…The foregoing models have principally been used to analyze the macroeconomic consequences of emission reduction policies at multiple scales-traditionally international, 13 but increasingly regional and national, 14 and even subnational Springmann et al, 2014) or sectoral (Rausch and Mowers, 2014). CGE models' key advantage is their ability to quantify complex interactions between climate policies and a panoply of other policy in-struments and characteristics of the economy.…”

Section: Ghg Omentioning

confidence: 99%

Computable General Equilibrium Models for Policy Evaluation and Economic Consequence Analysis

Wing

Balistreri

2018

Oxford Handbooks Online

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This chapter reviews recent applications of computable general equilibrium (CGE) modeling in the analysis and evaluation of policies that affect interactions among multiple markets. At the core of this research is a particular approach to the data and structural representations of the economy, elaborated through the device of a canonical static multiregional model. This template is adapted and extended to shed light on the structural and methodological foundations of simulating dynamic economies, incorporating “bottom-up” representations of discrete production activities, and modeling contemporary theories of international trade with monopolistic competition and heterogeneous firms. These techniques are motivated by policy applications including trade liberalization, development, energy policy and greenhouse gas mitigation, the impacts of climate change and natural disasters, and economic integration and liberalization of trade in services.

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“…Markandya et al [24] used the CGE model to analyze and compare the differences between developing countries and developed countries in a trade-off between traditional economic development and low-carbon development and found that the adverse impact of the implementation of emissions reduction policies on developing countries is huge. Springmann et al [25] explored the distribution of carbon quotas among different provinces in China. The results show that eastern China outsourced 14% of its own carbon quotas to central and western regions.…”

Section: Introductionmentioning

confidence: 99%

It is Worth Pondering Whether a Carbon Tax is Suitable for China’s Agricultural-Related Sectors

et al. 2018

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Studying the characteristics, trends, and evolution of carbon emissions in agricultural related sectors is of great significance for rational formulation of carbon emission reduction policies. However, as an important carbon emission reduction policy, carbon tax has been controversial over whether or not it should be levied on China. Based on this consideration, this paper takes China’s agricultural related sectors as an example and analyzes the degree of carbon tax on macro-environment, macroeconomy, and agricultural sectors during the period 2020–2050 by constructing a 3EAD-CGE (economy-energy-environmental-agricultural-dynamics Computable General Equilibrium) model. The results show that: (1) carbon tax has a time effect, specifically, the short-term effect is better than the long-term. (2) If the incremental rate of carbon tax is carried out alone, it will exert a great influence on the macroeconomy as well as on most of the agricultural related sectors. (3) If a carbon tax is introduced at the same time as indirect taxes are cut (proportionally), the policy will exert a negative impact on agriculture-related sectors that are subsidized. However, the policy will have a positive impact on those nonsubsidized sectors. Finally, based on the results, we put forward some suggestions that are more suitable for the introduction of a carbon tax in China’s agricultural-related sectors.

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Consumption-Based Adjustment of Emissions-Intensity Targets: An Economic Analysis for China’s Provinces

Cited by 21 publications

References 32 publications

Equity and emissions trading in China

Equity and emissions trading in China

Computable General Equilibrium Models for Policy Evaluation and Economic Consequence Analysis

It is Worth Pondering Whether a Carbon Tax is Suitable for China’s Agricultural-Related Sectors

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