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The ETS in China and Europe: dynamics, policy options and global sustainability perspectives

Author

Listed:
  • Paul J. J. Welfens

    (University of Wuppertal (EIIW)
    University of Wuppertal
    AICGS/Johns Hopkins University)

  • Nan Yu

    (University of Wuppertal (EIIW)
    University of Wuppertal)

  • David Hanrahan

    (University of Wuppertal (EIIW)
    University of Wuppertal)

  • Yong Geng

    (Shanghai Jiao Tong University)

Abstract

The Emission Trading Schemes of China and Europe show that China’s envisaged national ETS could bring a major contribution in the international approach against global warming; new perspectives on the use of composite sustainability indicators are also highlighted. China’s regional pilot schemes will converge to a (more) uniform price of emission allowances. As China is a major economic and political actor in the world economy, China’s progress with ETS is important. At the same time, China’s progress in the field of green international competitiveness – standing for a positive revealed comparative advantage in environmentally friendly goods – in the period 2000–2015 is considerable and the improved positioning of China in the EIIW-vita sustainability indicator shows considerable technological dynamics in Asia. The European ETS is working, but it suffers from the rather low price of emission allowances. The long-term time horizon of 2050 in the EU climate policy is rather ambitious and it is unclear whether or not a consistent G20 approach can be achieved – with the EU, China, Japan and the US cooperating amongst each other. There is a lack of a specialized climate stabilization institution in the world economy, the traditional anchoring of climate policy in the UN weakens the practical pressure for efficient cooperation since the UN is very heterogeneous in terms of per capita income and GHG emissions per unit of GDP; G20 might be an institution that is suitable for effective policy cooperation. More initiatives in the field of recycling could be useful.

Suggested Citation

  • Paul J. J. Welfens & Nan Yu & David Hanrahan & Yong Geng, 2017. "The ETS in China and Europe: dynamics, policy options and global sustainability perspectives," International Economics and Economic Policy, Springer, vol. 14(3), pages 517-535, July.
    • Handle: RePEc:kap:iecepo:v:14:y:2017:i:3:d:10.1007_s10368-017-0392-4
    DOI: 10.1007/s10368-017-0392-4
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    References listed on IDEAS

    as
    1. Joscha Beckmann & Robert Czudaj, 2013. "Oil and gold price dynamics in a multivariate cointegration framework," International Economics and Economic Policy, Springer, vol. 10(3), pages 453-468, September.
    2. World Bank, 2017. "World Development Indicators 2017," World Bank Publications - Books, The World Bank Group, number 26447.
    3. Paul J.J. Welfens & Jens K. Perret & Tony Irawan & Evgeniya Yushkova, 2016. "Towards Global Sustainability," Springer Books, Springer, edition 1, number 978-3-319-18666-5, December.
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    Cited by:

    1. Jeffrey Unerman & Jan Bebbington & Brendan O’dwyer, 2018. "Corporate reporting and accounting for externalities," Accounting and Business Research, Taylor & Francis Journals, vol. 48(5), pages 497-522, July.
    2. Paul J.J. Welfens, 2019. "CO2-Steuer, Zertifikate-Handel und Innovationsförderung als Klimapolitik-Instrumente," EIIW Discussion paper disbei259, Universitätsbibliothek Wuppertal, University Library.

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