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California's Cap-and-Trade Programme and Insights for China's Pilot Schemes

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  • Bo Shen
  • Fan Dai
  • Lynn Price
  • Hongyou Lu

Abstract

California's cap-and-trade programme under the Assembly Bill 32 is a key element in California's comprehensive plan for reducing its greenhouse gas (GHG) emissions to 1990 levels by 2020. In China, separate local cap-and-trade pilot schemes are being developed to explore a market-based solution for addressing the country's increasing GHG emissions. The Californian cap-and-trade scheme and China's local pilots are similar in that both have been developed in the absence of a national emissions trading scheme. This paper reviews the Californian scheme and draws insights for China's pilots from various perspectives including the legal basis, institutional arrangement, programme structure, market design, the implementation process, and mechanisms for ensuring compliance.

Suggested Citation

  • Bo Shen & Fan Dai & Lynn Price & Hongyou Lu, 2014. "California's Cap-and-Trade Programme and Insights for China's Pilot Schemes," Energy & Environment, , vol. 25(3-4), pages 551-575, April.
    • Handle: RePEc:sae:engenv:v:25:y:2014:i:3-4:p:551-575
    DOI: 10.1260/0958-305X.25.3-4.551
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    Cited by:

    1. Munnings, Clayton & Morgenstern, Richard D. & Wang, Zhongmin & Liu, Xu, 2016. "Assessing the design of three carbon trading pilot programs in China," Energy Policy, Elsevier, vol. 96(C), pages 688-699.
    2. Liu, Zhiqing & Geng, Yong & Dai, Hancheng & Wilson, Jeffrey & Xie, Yang & Wu, Rui & You, Wei & Yu, Zhongjue, 2018. "Regional impacts of launching national carbon emissions trading market: A case study of Shanghai," Applied Energy, Elsevier, vol. 230(C), pages 232-240.
    3. Xiong, Ling & Shen, Bo & Qi, Shaozhou & Price, Lynn & Ye, Bin, 2017. "The allowance mechanism of China’s carbon trading pilots: A comparative analysis with schemes in EU and California," Applied Energy, Elsevier, vol. 185(P2), pages 1849-1859.

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