Can China's carbon trading policy help achieve Carbon Neutrality? — A study of policy effects from the Five-sphere Integrated Plan perspective

Wang, Xiaoxia; Huang, Jialiang; Liu, Hongda

doi:10.1016/j.jenvman.2021.114357

Cited by 145 publications

(37 citation statements)

References 32 publications

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“…On the other hand, green land ecological construction is a carbon sink for carbon absorption. The ecological civilization is measured by per capita green area (Wang. et al, 2022).…”

Section: Control Variables and Moderator Variablesmentioning

confidence: 99%

A study on the impact of fiscal decentralization on carbon emissions with U-shape and regulatory effect

Xia

Zhan

et al. 2022

Front. Environ. Sci.

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The Chinese government set a goal in 2009 to cut carbon emissions by 40–45 percent of 2005 GDP per unit by 2020. The role of fiscal decentralization reform in strengthening environmental governance has gained importance. This paper explored the impact of fiscal decentralization reform from 2010 to 2019 on carbon dioxide emissions in China. We utilized the first-order differential dynamic panel econometrics model to examine the correlation between fiscal decentralization and carbon dioxide emission under fiscal imbalance and transfer indirect effects. The findings revealed that 1) fiscal imbalance reduced CO2 emissions due to the decentralization of revenue, and expenditure asymmetry undermined CO2 emissions control. 2) The central government’s transfer payments offset the negative consequences of a fiscal imbalance. The fiscal decentralization of the government caused a difference between regional income and expenditures in the budget. However, it could affect local government expenditure on carbon emission control through central transfer payments, which could restrain carbon emissions and control environmental pollution. 3) The impact of fiscal decentralization on carbon dioxide emissions was influenced by the industrial structure with the U-Shape effect. This was because the adjustment of the industrial structure was cross-term. In the early stage of the industrial structure adjustment, there was a significant decline in coal consumption demand and carbon emissions reduced. However, as the proportion of the secondary industry increased, there was a significant positive correlation between the secondary sector and carbon dioxide emissions in China. Our findings have important policy implications. First, while the promotion of Chinese officials is based on local GDP performance, locals may introduce green GDP as the criterion for rating governments’ performance. Second, local governments should improve environmental governance by increasing technical, environmental protection, and innovation investment. All in all, the findings provide a theoretical basis for relevant research and policy suggestions for China.

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“…On the other hand, green land ecological construction is a carbon sink for carbon absorption. The ecological civilization is measured by per capita green area (Wang. et al, 2022).…”

Section: Control Variables and Moderator Variablesmentioning

confidence: 99%

A study on the impact of fiscal decentralization on carbon emissions with U-shape and regulatory effect

Xia

Zhan

et al. 2022

Front. Environ. Sci.

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“…The findings indicated that carbon emissions decreased dramatically in several provinces following the implementation of the carbon trading policy. Additionally, the research demonstrated that the continued implementation of a carbon trading policy would result in carbon neutrality (Wang et al 2022 ). Another study examined the feasibility of carbon tax incentive programmes for reducing the aviation industry’s carbon emissions using algorithms and airline data (Qiu et al 2020 ).…”

Section: Achieving Carbon Neutralitymentioning

confidence: 99%

Strategies to achieve a carbon neutral society: a review

et al. 2022

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The increasing global industrialization and over-exploitation of fossil fuels has induced the release of greenhouse gases, leading to an increase in global temperature and causing environmental issues. There is therefore an urgent necessity to reach net-zero carbon emissions. Only 4.5% of countries have achieved carbon neutrality, and most countries are still planning to do so by 2050–2070. Moreover, synergies between different countries have hampered synergies between adaptation and mitigation policies, as well as their co-benefits. Here, we present a strategy to reach a carbon neutral economy by examining the outcome goals of the 26th summit of the United Nations Climate Change Conference of the Parties (COP 26). Methods have been designed for mapping carbon emissions, such as input–output models, spatial systems, geographic information system maps, light detection and ranging techniques, and logarithmic mean divisia. We present decarbonization technologies and initiatives, and negative emissions technologies, and we discuss carbon trading and carbon tax. We propose plans for carbon neutrality such as shifting away from fossil fuels toward renewable energy, and the development of low-carbon technologies, low-carbon agriculture, changing dietary habits and increasing the value of food and agricultural waste. Developing resilient buildings and cities, introducing decentralized energy systems, and the electrification of the transportation sector is also necessary. We also review the life cycle analysis of carbon neutral systems.

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“…Zhou et al [19] and Wang et al [20,21] found a similar effect on carbon reduction. In a more recent paper, Wang et al [22] showed that carbon trading policy has a significant and sustainable effect on carbon neutrality.…”

Section: Literature Reviewmentioning

confidence: 99%

The dilemma for China’s national carbon trading market: minimizing carbon abatement costs or maximizing net social benefits?

Yin

Wang

2022

Carb Neutrality

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After a decade of planning and trials, China officially launched a national carbon trading in July 2021. Using a standard economic model, this study shows that an unconstrained carbon trading market would face a dilemma between minimizing pollution control costs and maximizing social benefits. We further show that this would be a significant challenge in China. Our results show that areas with higher population densities also would have higher costs for carbon reduction, and hence the polluters in those areas would be net buyers in the national market. Moreover, our analysis indicates a significantly high correlation between carbon dioxide emissions and other local pollutants. Therefore, cross-regional transactions may result in more emission of other pollutants in areas with higher population density under the unconstrained national cap-and-trade system and cause larger losses in social benefits. We call for more studies to address the issue.

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Can China's carbon trading policy help achieve Carbon Neutrality? — A study of policy effects from the Five-sphere Integrated Plan perspective

Cited by 145 publications

References 32 publications

A study on the impact of fiscal decentralization on carbon emissions with U-shape and regulatory effect

A study on the impact of fiscal decentralization on carbon emissions with U-shape and regulatory effect

Strategies to achieve a carbon neutral society: a review

The dilemma for China’s national carbon trading market: minimizing carbon abatement costs or maximizing net social benefits?

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