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Between Market and State: Dilemmas of Environmental Governance in China's Sulphur Dioxide Emission Trading System

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  • Julia Tao

    (Department of Public and Social Administration, and Governance in Asia Research Centre, 7/F, Academic Building, City University of Hong Kong, Tat Chee Avenue, Kowloon, Hong Kong)

  • Daphne Ngar-Yin Mah

    (Governance in Asia Research Centre, City University of Hong Kong, 7/F, Block 2, To Yuen Building, 31 To Yuen Street, Kowloon Tong, Hong Kong)

Abstract

Beginning in the 1990s, China has completed two phases of emission trading pilots. In this paper we assess China's pilot programme and analyze how it has been constrained by major problems in three areas of governance capacities: state, policy, and administrative capacities. These problems reflect deeper and more profound dilemmas of market transition experienced by the Chinese government in the past three decades. The dilemmas have resulted in the development of a ‘state-led’ pseudomarket, instead of a full and ‘autonomous’ market, for emission trading in China. It is evidently clear that China still faces many challenges in establishing a market for emission trading which require strengthening its governing capacity in order to address effectively the issues of the rule of law, independent regulation, information disclosure, and public accountability.

Suggested Citation

  • Julia Tao & Daphne Ngar-Yin Mah, 2009. "Between Market and State: Dilemmas of Environmental Governance in China's Sulphur Dioxide Emission Trading System," Environment and Planning C, , vol. 27(1), pages 175-188, February.
    • Handle: RePEc:sae:envirc:v:27:y:2009:i:1:p:175-188
    DOI: 10.1068/c0768
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    References listed on IDEAS

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    1. Tom Jones, 2002. "Policy Coherence, Global Environmental Governance, and Poverty Reduction," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 2(4), pages 389-401, December.
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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. Song, Xiangnan & Lu, Yujie & Shen, Liyin & Shi, Xunpeng, 2018. "Will China's building sector participate in emission trading system? Insights from modelling an owner's optimal carbon reduction strategies," Energy Policy, Elsevier, vol. 118(C), pages 232-244.

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