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Climate Change and Human Response to Sustainable Environmental Governance Policy: Tax or Emissions Trading?

Author

Listed:
  • Qinglong Wang

    (School of Marxism, Chengdu University of Technology, Chengdu 610057, China)

  • Jiale Huang

    (School of Business, Chengdu University of Technology, Chengdu 610057, China)

  • Xian Zhang

    (School of Marxism, Sichuan University, Chengdu 610065, China)

  • Weina Qin

    (School of Marxism, Southwest Petroleum University, Chengdu 610500, China)

  • Huina Zhang

    (Department of Cyber Economics and Management, Tellhow Animation College, Nanchang 330200, China)

  • Yani Dong

    (China Telecom Corporation Lanzhou Branch, Lanzhou 730000, China)

Abstract

With climate change, humans are looking for effective ways to improve the ecological environment and provide comfortable survival space for sustainable development. There are two main economic methods for controlling environmental pollution: emissions fees (Pigouvian taxes) and emissions standards (emissions trading). However, the two policies have their applicable conditions in dealing with different sources of pollution and dynamic ecosystems, and many problems will arise if they are misused. This paper theoretically proves that significant (minor) pollution sources could satisfy the condition that the benefit function’s curvature is greater (less) than that of the cost function. When the speed of ecological absorption is constant, a price policy controlling significant pollution sources will generate uncertainty; the quantity policy will generate a higher total social cost of managing the minor pollution source. When the speed of ecological absorption is not constant, adjusting the number of part pollution permits will lead to two kinds of pollutant leakage. If the pollution permits can be freely circulated, it will lead to the pollution of regional b (less regulated areas) inflow into the region a (more regulated areas); if permits are not freely circulated, otherwise not.

Suggested Citation

  • Qinglong Wang & Jiale Huang & Xian Zhang & Weina Qin & Huina Zhang & Yani Dong, 2022. "Climate Change and Human Response to Sustainable Environmental Governance Policy: Tax or Emissions Trading?," Sustainability, MDPI, vol. 14(15), pages 1-13, August.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:15:p:9412-:d:877648
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    References listed on IDEAS

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