Cover of publication Climate Change 37/2021 China’s Pilot Emissions Trading Systems and Electricity Markets (Hubei and Shenzhen): Influence of market structures and market regulations on the carbon market
Climate | EnergyEconomy | Consumption

China’s Pilot Emissions Trading Systems and Electricity Markets (Hubei and Shenzhen)

Influence of market structures and market regulations on the carbon market

Case Study Report

Electricity generation is the largest source of greenhouse gas emissions in many countries. Most emissions trading systems (ETS) therefore address emissions from electricity generation. The de-sign of an ETS and the structure and regulation of the electricity sector have a large impact on the environmental effectiveness and the quality of the carbon price signal. This report analyses the interaction of carbon and electricity markets in two pilot systems in China: Hubei and Shenzhen. The two pilot systems have adopted very different design features due to the specific local circum-stances. Due to strong government regulation of China’s electricity sector, carbon pricing has played a very limited role in driving low carbon investments. A more market-oriented electricity trading market and deregulation of electricity pricing for certain end-users seems necessary for an effective ETS in China. However, this will depend on the political acceptability of electricity price increases resulting from a strong carbon price signal.  
This case study is part of the project “Influence of market structures and market regulation on the carbon market” that aims to identify the impact of market structures and regulations on carbon markets and to investigate the interdependencies between carbon and energy markets in Europe, California, China, South Korea, and Mexico.

Reihe
Climate Change | 37/2021
Seitenzahl
87
Erscheinungsjahr
Autor(en)
Hao Zhang, Anatole Boute, William Acworth
Sprache
Englisch
Forschungskennzahl
3718 42 002 0
Verlag
Umweltbundesamt
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PDF ist barrierefrei
Dateigröße
1588 KB
Preis
0,00 €
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Schlagworte:
 emissions trading  electricity markets  regulations