IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v48y2012icp770-778.html
   My bibliography  Save this article

Sectoral crediting mechanism: How far China has to go

Author

Listed:
  • Cai, Wenjia
  • Wang, Can
  • Chen, Jining
  • Wang, Siqiang

Abstract

Based on the review of the basic design of the sectoral crediting mechanism (SCM) – a promising option for developing countries’ emission reduction commitments – this paper analyzes five important practical issues for China to solve before participating in SCM, which include (1) difficulties in determining a crediting baseline (2) the unsolved over-supply problem in the carbon market (3) the very likely “carbon credits falling short of mitigation costs” problem (4) the immature market-oriented price system jeopardizing the success of motivation incentives and (5) inadequate capacity building. Corresponding suggestions or compromise solutions are given after a discussion of each issue. It is also recommended that in order to witness SCM come into being, researchers and negotiators should endeavor to solve the practical issues that SCM meets now, bearing in mind the balance of interests of both developing and developed countries. Finally we believe that SCM’s political barriers can be overcome when technical, economic institutional and capacity problems are solved.

Suggested Citation

  • Cai, Wenjia & Wang, Can & Chen, Jining & Wang, Siqiang, 2012. "Sectoral crediting mechanism: How far China has to go," Energy Policy, Elsevier, vol. 48(C), pages 770-778.
    • Handle: RePEc:eee:enepol:v:48:y:2012:i:c:p:770-778
    DOI: 10.1016/j.enpol.2012.06.012
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421512005198
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2012.06.012?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. André Aasrud & Richard Baron & Barbara Buchner & Kevin McCall, 2009. "Sectoral Market Mechanisms: Issues for Negotiation and Domestic Implementation," OECD/IEA Climate Change Expert Group Papers 2009/5, OECD Publishing.
    2. Teng, Fei & Zhang, Xiliang, 2010. "Clean development mechanism practice in China: Current status and possibilities for future regime," Energy, Elsevier, vol. 35(11), pages 4328-4335.
    3. Cai, Wenjia & Wang, Can & Liu, Wenling & Mao, Ziwei & Yu, Huichao & Chen, Jining, 2009. "Sectoral analysis for international technology development and transfer: Cases of coal-fired power generation, cement and aluminium in China," Energy Policy, Elsevier, vol. 37(6), pages 2283-2291, June.
    4. Richard Baron & Barbara Buchner & Jane Ellis, 2009. "Sectoral Approaches and the Carbon Market," OECD/IEA Climate Change Expert Group Papers 2009/3, OECD Publishing.
    5. Cai, Wenjia & Wang, Can & Wang, Ke & Zhang, Ying & Chen, Jining, 2007. "Scenario analysis on CO2 emissions reduction potential in China's electricity sector," Energy Policy, Elsevier, vol. 35(12), pages 6445-6456, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gao, Shuai & Smits, Mattijs & Mol, Arthur P.J. & Wang, Can, 2016. "New market mechanism and its implication for carbon reduction in China," Energy Policy, Elsevier, vol. 98(C), pages 221-231.
    2. Fujii, Hidemichi & Managi, Shunsuke, 2015. "Economic development and multiple air pollutant emissions from the industrial sector," MPRA Paper 67027, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lin, Boqiang & Wang, Xiaolei, 2014. "Promoting energy conservation in China's iron & steel sector," Energy, Elsevier, vol. 73(C), pages 465-474.
    2. FUJIWARA Noriko & GEORGIEV Anton & ALESSI Monica, 2010. "The merit of sectoral approaches in transitioning towards a global carbon market," ESRI Discussion paper series 235, Economic and Social Research Institute (ESRI).
    3. Stua, Michele, 2013. "Evidence of the clean development mechanism impact on the Chinese electric power system's low-carbon transition," Energy Policy, Elsevier, vol. 62(C), pages 1309-1319.
    4. Gao, Shuai & Cai, Wenjia & Liu, Wenling & Wang, Can & Zhang, ZhongXiang, 2014. "Corporate Preferences for Domestic Policy Instruments under a Sectoral Market Mechanism: A Case Study of Shanxi Province in China," Working Papers 249496, Australian National University, Centre for Climate Economics & Policy.
    5. Kermeli, Katerina & Edelenbosch, Oreane Y. & Crijns-Graus, Wina & van Ruijven, Bas J. & van Vuuren, Detlef P. & Worrell, Ernst, 2022. "Improving material projections in Integrated Assessment Models: The use of a stock-based versus a flow-based approach for the iron and steel industry," Energy, Elsevier, vol. 239(PE).
    6. Jun Li & Michel Colombier, 2011. "Economic instruments for mitigating carbon emissions: scaling up carbon finance in China’s buildings sector," Climatic Change, Springer, vol. 107(3), pages 567-591, August.
    7. Perwez, Usama & Sohail, Ahmed & Hassan, Syed Fahad & Zia, Usman, 2015. "The long-term forecast of Pakistan's electricity supply and demand: An application of long range energy alternatives planning," Energy, Elsevier, vol. 93(P2), pages 2423-2435.
    8. Fuquan Zhao & Feiqi Liu & Han Hao & Zongwei Liu, 2020. "Carbon Emission Reduction Strategy for Energy Users in China," Sustainability, MDPI, vol. 12(16), pages 1-19, August.
    9. An, Runying & Yu, Biying & Li, Ru & Wei, Yi-Ming, 2018. "Potential of energy savings and CO2 emission reduction in China’s iron and steel industry," Applied Energy, Elsevier, vol. 226(C), pages 862-880.
    10. Wang, Yanxiang & Ali Almazrooei, Shaikha & Kapsalyamova, Zhanna & Diabat, Ali & Tsai, I-Tsung, 2016. "Utility subsidy reform in Abu Dhabi: A review and a Computable General Equilibrium analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 55(C), pages 1352-1362.
    11. Kale, Rajesh V. & Pohekar, Sanjay D., 2014. "Electricity demand and supply scenarios for Maharashtra (India) for 2030: An application of long range energy alternatives planning," Energy Policy, Elsevier, vol. 72(C), pages 1-13.
    12. Nair, Sujith & Paulose, Hanna, 2014. "Emergence of green business models: The case of algae biofuel for aviation," Energy Policy, Elsevier, vol. 65(C), pages 175-184.
    13. Rentizelas, Athanasios & Georgakellos, Dimitrios, 2014. "Incorporating life cycle external cost in optimization of the electricity generation mix," Energy Policy, Elsevier, vol. 65(C), pages 134-149.
    14. de Sépibus, Joëlle, 2009. "Reforming the Clean Development Mechanism to Accelerate Technology Transfer," Papers 7, World Trade Institute.
    15. Galiya Movkebayeva & Aliya Aktymbayeva & Yuliya Tyurina & Nurken Baikadamov & Kamar Beketova & Marija Troyanskaya & Sholpan Smagulova & Aizhan Imangaliyeva, 2020. "Energy Security and Sustainability in Eurasian Economic Union in the Terms of Economic Growth: The Case of Kazakhstan s Energy Sector up to 2040 Perspectives," International Journal of Energy Economics and Policy, Econjournals, vol. 10(2), pages 497-503.
    16. Gavard, Claire & Winchester, Niven & Paltsev, Sergey, 2016. "Limited trading of emissions permits as a climate cooperation mechanism? US–China and EU–China examples," Energy Economics, Elsevier, vol. 58(C), pages 95-104.
    17. Cheng, Rui & Xu, Zhaofeng & Liu, Pei & Wang, Zhe & Li, Zheng & Jones, Ian, 2015. "A multi-region optimization planning model for China’s power sector," Applied Energy, Elsevier, vol. 137(C), pages 413-426.
    18. Gao, Tianming & Shen, Lei & Shen, Ming & Liu, Litao & Chen, Fengnan & Gao, Li, 2017. "Evolution and projection of CO2 emissions for China's cement industry from 1980 to 2020," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 522-537.
    19. Qi Liu & Jiahao Liu & Dunhu Liu, 2018. "Intelligent Multi-Objective Public Charging Station Location with Sustainable Objectives," Sustainability, MDPI, vol. 10(10), pages 1-18, October.
    20. Li, Yongliang & Cao, Hui & Wang, Shuhao & Jin, Yi & Li, Dacheng & Wang, Xiang & Ding, Yulong, 2014. "Load shifting of nuclear power plants using cryogenic energy storage technology," Applied Energy, Elsevier, vol. 113(C), pages 1710-1716.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:48:y:2012:i:c:p:770-778. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.