Comments on a Hybrid Mechanism of Carbon Reduction for China
Volume 7, Issue 6, December 2018, Pages: 291-297
Received: Oct. 24, 2018;
Accepted: Nov. 16, 2018;
Published: Dec. 24, 2018
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Yingfeng Long, Law School, Shanghai Lixin University of Accounting and Finance, Shanghai, China
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As a responsible big country, China take it seriously to counter global climate change. Among two market-oriented emission reduction mechanisms (Cap-and-Trade and carbon tax), China selected Cap-and-Trade to build up the carbon emission reduction system. Since December 2013, seven provinces or cities include Beijing, Tianjin, Shanghai, Guangdong, Shenzhen, Hubei and Chongqin started the experimental work of Cap-and-Trade. On December 18, 2017, the National Development and Reform Commission initiate the national market construction of Cap-and-Trade firstly in the industry of power generation. Whereas, the present cap-and-Trade mechanism of China exists obvious defects which will influence negatively the anticipated targets of carbon reduction. In this thesis, the author has used the method of Historical Analysis, method of Comparison, method of Economical Analysis and method of Normative Analysis to do the research about China’s present Cap-and-Trade and pointed out that it has obvious defects which include the defect of unfairness, the defect of ineffectiveness, the defect of inherent shortcoming, the defect of benefit privatization and the defect of lag developing. To perfect the defects, this thesis put forward a hybrid new mechanism which incorporate simultaneously price based carbon tax with amount based Cap-and-Trade. Under the new hybrid mechanism, all emitters should undertake emission reduction responsibilities and the enthusiasm of emitters to take part in the emission trading system will be greatly improved, also the emission trade volume and vitality will be improved, and the emission reduction target set in the Intended Nationally Determined Contributions Document (INDC) of China will have a reliable guarantee to be obtained. Under the new hybrid mechanism, Carbon Tax Border Adjustment being a key supporting measure, the implementation of it will not violate the multilateral trade rules and will consistent to the spirit of the principles of CBDR of Kyoto Protocol. Further, the impacts of Carbon Tax Border Adjustment on trade, production and consumption are neutral, the management and operation of Carbon Tax Border Adjustment is feasible.
Hybrid Mechanism, Cap-and-Trade, Carbon Tax, Border Adjustment
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Comments on a Hybrid Mechanism of Carbon Reduction for China, Social Sciences.
Vol. 7, No. 6,
2018, pp. 291-297.
Copyright © 2018 Authors retain the copyright of this article.
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