China is preparing to give market-based instruments a greater role in its climate change mitigation and energy policy portfolio. Seven emissions trading pilot schemes are getting underway, and a national carbon pricing scheme is being considered. Researchers from China and Australia present an update on developments on climate change mitigation policy in China, in particular the development of emissions trading schemes and reform in China’s energy sector. Preliminary results will be presented from projects under the Australia-China research program on climate change mitigation policy. The program involves researchers from Chinese and Australian universities and other organisations. It is convened by the ANU Centre for Climate Economics & Policy and supported by an Australian government grant.

Tsinghua University

Ms Qing Tong Senior engineer at Tsinghua University, Institute of Energy, Environment and Economy

Dr Yu Wang Researcher at Tsinghua University, Institute of Energy, Environment and Economy

Dr Gu Alun
Associate Professor Teng Fei

Fudan University

Prof Libo Wu Professor at the School of Economics

Wuhan University

Prof Shaozhou Qi
Professor of Economics and Management at Wuhan University, and Director of Climate Change, Environment and Energy Study Centre of Wuhan University

Ms Banban Wang

Beijing Institute of Technology

Dr Hua Liao
Associate Professor at the Center for Center for Energy & Environmental Policy Research (CEEP) at the Beijing Institute of Technology (BIT)

Tianjin Climate Exchange

Dr David Tang
Secretary of the Board of the Tianjin Climate Exchange and Head of its Beijing Office

China Carbon Forum

Mr Dimitri de Boer Mr Hugh Kater General Manager of China Carbon Forum (CCF)

UNSW

Dr Maria Balatbat Senior Lecturer at UNSW, School of Accounting and joint director of Centre for Energy and Environmental Markets (CEEM)

Dr Iain MacGill Associate Professor at UNSW School of Electrical Engineering and joint director of Centre for Energy and Environmental Markets (CEEM)

Dr Peerapat Vithayasrichareon
Research fellow at UNSW, the Centre for Energy and Environmental Markets (CEEM)

Mr Xinyang Wei PhD Candidate at UNSW, the Centre for Energy and Environmental Markets (CEEM)

Dr Regina Betz
Research coordinator at UNSW, the Centre for Energy and Environmental Markets (CEEM)

Melbourne University

Mr Hao Zhang PhD scholar at Melbourne University

ANU

Dr Paul Burke Fellow at ANU Crawford School

Mr Shenghao Feng PhD scholar at ANU

Dr Frank Jotzo Associate Professor at ANU Crawford School where he runs the Centre for Climate Economics and Policy

Presentations at ANU and AARES conference, February 2014

‘Emissions trading in China’

Australia-China research program on climate change mitigation policy

Frank Jotzo, ANU
Introduction: Australia-China research program on climate change mitigation policy (pdf, 712 KB)

The emissions trading pilot schemes

Shaozhou Qi, Wuhan University
Hubei’s ETS, and design features of ETS in the Chinese context (pdf, 556 KB)

Qing Tong, Tsinghua University
Beijing’s ETS (pdf, 2.21 MB)

Hao Zhang, Melbourne University
Shenzhen’s ETS (pdf, 295 KB)

Energy sector reform

Yu Wang, Tsinghua University
How Policies Narrow the Gap between Renewable Energy Actual Development and Targets in China (pdf, 583 KB)

Maria Balatbat and Xinyang Wei, UNSW (with Regina Betz, Iain MacGill and Peerapat Vithayasrichareon)
Modelling the effect of emissions pricing on electricity sector investments in China (pdf, 1.04 MB)

Paul Burke, ANU
Price elasticity of China’s coal demand (pdf, 395 KB)

Events

Tsinghua–ANU Forum on Climate and Energy Policy Research, Beijing, September 2014

Program

In September 2014 the Centre for Climate Economics and Policy (ANU) co-hosted a Research Forum in conjunction with Tsinghua University in Beijing. Keynote speakers and participants included Professor He Jiankun and Professor Xu Huaqing from Tsinghua, Professor Ross Garnaut from Melbourne University, Ms Yumei Zhang from Beijing Development and Reform Commission. The forum was hosted by Professor Zhang Xiliang of Tsinghua University and Dr Frank Jotzo of ANU Crawford School, and leading researchers from Tsinghua University, Fudan University, Wuhan University, Chinese Academy of Sciences, Beijing Institute of Technology, ANU, UNSW and Melbourne University presented their work.

• Symposium at Australian Agricultural and Resource Economics Society annual conference, February 2014 (PDF, 584KB)
• Workshop and public seminar at ANU, February 2014

Presentations at ANU and AARES conference, February 2014

‘Emissions trading in China’

Australia-China research program on climate change mitigation policy

Frank Jotzo, ANU
Introduction: Australia-China research program on climate change mitigation policy (pdf, 712 KB)

The emissions trading pilot schemes

Shaozhou Qi, Wuhan University
Hubei’s ETS, and design features of ETS in the Chinese context (pdf, 556 KB)

Qing Tong, Tsinghua University
Beijing’s ETS (pdf, 2.21 MB)

Hao Zhang, Melbourne University
Shenzhen’s ETS (pdf, 295 KB)

Energy sector reform

Yu Wang, Tsinghua University
How Policies Narrow the Gap between Renewable Energy Actual Development and Targets in China (pdf, 583 KB)

Maria Balatbat and Xinyang Wei, UNSW (with Regina Betz, Iain MacGill and Peerapat Vithayasrichareon)
Modelling the effect of emissions pricing on electricity sector investments in China (pdf, 1.04 MB)

Paul Burke, ANU
Price elasticity of China’s coal demand (pdf, 395 KB)

Working papers and publications resulting from the project

• Paul J. Burke, Hua Liao, June 2015. Is the price elasticity of demand for coal in China increasing?, CCEP Working Paper 1506

• Libo Wu, Weiqi Tang, May 2015. Efficiency or Equity? Simulating the Carbon Emission Permits Trading Schemes in China Based on an Inter-Regional CGE Model, CCEP Working Paper 1505

• Fei Teng and Frank Jotzo,2014. Reaping the economic benefits of decarbonization for China, CCEP Working Paper 1413 (published in China & World Economy)

• Frank Jotzo and Fei Teng, 2014. China’s Climate and Energy Policy: On Track to Low-carbon Growth?, China Update 2014

• Frank Jotzo, Dimitri de Boer and Hugh Kater, October 2013. China Carbon Pricing Survey 2013, CCEP Working Paper 1305

• Wang, B., Jotzo, F. and Qi, S., 2017. Ex-post cap adjustment for China’s ETS: an applicable indexation rule, simulating the Hubei ETS, and implications for a national scheme, Climate Policy

• Riesz, J., Elliston, D.B., Vithayasrichareon, D.P. and MacGill, A.P.I., 2016. 100% Renewables in Australia: A Research Summary, CEEM Working Paper

• Jotzo, F. and Löschel, A., 2014. Emissions trading in China: Emerging experiences and international lessons, Energy Policy

• Teng, F. and Jotzo, F., 2014. Reaping the economic benefits of decarbonization for China, China & World Economy

News and media

• “Climate policy US-Australia”, ABC News Capital Hill, 13 June 2014
• “China to limit carbon emissions for first time, climate adviser claims”, The Guardian, 3 June 2014
• “China to hit ‘peak coal’ within the decade”, ABC Radio, 10 February 2014
• “Chinese province’s emissions trading move leaves Australia behind”, Sydney Morning Herald, 2 December 2013
• “China to price carbon before US”, China Daily, 17 October 2013
• “China’s short march to carbon pricing”, Climate Spectator, 16 October 2013
• “China moves towards carbon pricing, away from regulation”, ABC Radio Australia, 14 Oct 2013
• “Carbon tax to come to China”, China Daily, 11 Oct 2013
• “China tests water for carbon market to discourage emissions”, Financial Times, 10 Oct 2013
• “ANU Crawford School story on the project “

Other CCEP publications on China’s climate and energy policy

Working papers

• ZhongXiang Zhang, April 2015, Carbon Emissions Trading in China: The Evolution from Pilots to a Nationwide Scheme CCEP Working Paper 1503

• Shuai Gao, Wenjia Cai, Wenling Liu, Can Wang, ZhongXiang Zhang, August 2014, Corporate preferences for domestic policy instruments under a sectoral market mechanism: A case study of Shanxi province in China CCEP Working Paper 1414

• ZhongXiang Zhang, June 2014, Programs, prices and policies towards energy conservation and environmental quality in China CCEP Working Paper 1407

• ZhongXiang Zhang, June 2014, Energy prices, subsidies and resource tax reform in China CCEP Working Paper 1406

• Teng Fei, Frank Jotzo, August 2014, Reaping the economic benefits of decarbonization for China CCEP Working Paper 1413

• China Carbon Pricing Survey 2013, Frank Jotzo, Dimitri de Boer and Hugh Kater, October 2013, CCEP Working Paper 1305

• Emissions trading in China: Principles, design options and lessons from international practice, Frank Jotzo, May 2013, CCEP Working Paper 1303

• Carbon-based Border Tax Adjustments and China’s International Trade: Analysis based on a Dynamic Computable General Equilibrium Model, Ling Tang, Qin Bao, ZhongXiang Zhang and Shouyang Wang, January 2013, CCEP Working Paper1301

• China’s Energy Reform and Climate Policy: The Ideas Motivating Change, Olivia Boyd, May 2012, CCEP Working Paper 1205

• Impacts of border carbon adjustments on China’s sectoral emissions: simulations with a dynamic computable general equilibrium model, Qin Bao, Ling Tang, ZhongXiang Zhang, Han Qiao, Shouyang Wang, February 2012, CCEP Working Paper 1202

• Who Should Bear the Cost of China’s Carbon Emissions Embodied in Goods for Exports?, ZhongXiang Zhang East-West Center, September 2011, CCEP Working Paper 1114

• China’s low carbon transformation: drivers, challenges, and paths, Jiahua Pan, October 2010, CCEP Working Paper 6.10

• Comparing the Copenhagen climate targets, Frank Jotzo, October 2010, CCEP Working Paper 1.10