Pathway and policy analysis to China’s deep decarbonization

The Paris Agreement marks the beginning of a new era in the global response to climate change, which further clarifies the long-term goal and underlines the urgency addressing climate change. For China, promoting the decoupling between economic growth and carbon emissions as soon as possible is not only the core task of achieving the medium- and long-term goals and strategies to address climate change, but also the inevitable requirement for ensuring the sustainable development of economy and society. Based on the analysis of the historical trends of the economy and social development, as well as society, energy consumption, and key end-use sectors in China, this paper studies the deep carbon emission reduction potential of carbon emission of in energy, industry, building, and transportation and other sectors with “bottom-up” modeling analysis and proposes a medium- and long-term deep decarbonization pathway based on key technologies’ mitigation potentials for China. It is found that under deep decarbonization pathway, China will successfully realize the goals set in China’s Intended Nationally Determined Contributions of achieving carbon emissions peak around 2030 and lowering carbon dioxide emissions per unit of gross domestic product (GDP) by 60–65% from the 2005 level. From 2030 onward, the development of nonfossil energy will further accelerates, and the share of nonfossil energies in primary energy will amounts to about 44% by 2050. Combined with the acceleration of low-carbon transformation in end-use sectors including industry, building, and transportation, the carbon dioxide emissions in 2050 will fall to the level before 2005, and the carbon dioxide emissions per unit of GDP will decreases by more than 90% from the 2005 level. To ensure the realization of the deep decarbonization pathway, this paper puts forward policy recommendations from four perspectives, including intensifying the total carbon dioxide emissions cap and strengthening the related institutional systems and regulations, improving the incentive policies for industrial low-carbon development, enhancing the role of the market mechanism, and advocating low-carbon life and consumption patterns.     

The impact analysis of policy events on China’s carbon market

ABSTRACT

This paper interrogates the impact of policy events on the efficiency of carbon market in China. The analysis covers five piloting emission trading schemes (Beijing, Shanghai, Guangdong, Shenzhen and Hubei), particularly focusing on Guangdong pilot for its weak form efficiency and the richness of policy events. Twenty-five policy events between 2014 and 2016 are categorized into seven groups. The efficiency test indicates that only Guangdong ETS has reached weak form efficiency. After exploring the policy events occurred in Guangdong ETS, it finds that although a clear long-term climate policy has been set up over the country, China’s carbon market still has a conservative risk appetite and its governing institutions still needs further development. The policy makers need to be aware of and avoid the negative impacts of policy events to the market evolvement, by introducing effective consultancy process with the stakeholders and nurturing market expectations in the long run. We also find that events like allowance auctions have considerably less impacts than previously expected and argue that auction approach should be considered a preferable option over a free allocation system in the future policy design.     

Australia and Russia: How do their environmental policy processes differ?

This paper focuses on comparative review and analysis of the systems of environmental protection, national environmental strategies and fundamentals of environmental legislation in Australia and the Russian Federation. These countries have many socioeconomic similarities, such as low population densities and richness in natural resources which are largely exported. The main disparity between Australia and Russia is in the types of economy. This paper ‘continues’ the sequence of recent scholarly publications on comparison of various features of environmental policies in the countries from all over the world. Comparative analysis in this research has been based on examination of scholarly publications, legislation, government documents, mass media sources and NGO responses. The analysis has revealed a number of differences including top-down implementation of policies in Russia whereas in Australia, each State (Territory) implements policies with significant independence from the Commonwealth Government. At the same time, similarities between the countries have been identified: for example, in deficits in the budget of local environmental authorities and in the presence of contradictions in legislation at national and regional levels of government. Suggestions resulting from this analysis include further integration of sustainable development strategies at all levels of Australian government to encourage further protection of the environment and, for Russia, creating a separate Ministry of Environmental Protection. These approaches should assist facilitation of sustainable development for both nations. Readers should send their comments on this paper to: BhaskarNath@aol.com within 3 months of publication of this issue.     

How far are biodiversity loss and climate change similar as policy issues?

Climate change and biodiversity loss have a central position in policy debate about global environmental change; however, of the two, climate change has a higher profile. This paper explores the similarities and difference between the two issues. Climate change is better defined and better understood as a policy issue, it is underpinned by a strong scientific consensus and practical units of measurement (CO₂ and financial impacts), and mitigation involves a key economic sector in energy. Biodiversity loss is less easily understood, more diffuse and less tangible, and policy responses do not engage major economic sectors. We argue that these differences contribute to the higher public and policy profile of climate change and can inform attempts to enhance responses to the problem of biodiversity loss.     

Implementing green infrastructure policy in agricultural landscapes—scenarios for Saxony-Anhalt,Germany

Regional Environmental Change - Green infrastructure (GI) has been identified as helping to protect Europe’s natural capital by fostering environmental protection outside nature reserves and...     

China’s Grain for Green policy and farm dynamics: simulating household land-use responses

Analyzing the interaction between environmental policies and farmers’ responses to them is an important dimension to understand regional agro-ecosystem sustainability. We examine land-use outcomes of perhaps the largest government-planned rural reforestation program in the history of humankind, China’s “Grain for Green” (GFG) policy from 1999 to 2006. Specifically, we simulate household responses to the GFG policy in Western China’s Shaanxi Province, a region experiencing acute climate and land change-related environmental degradation. We develop a “farmer group decision-making model” to simulate the probability of land-use change. Elevation, slope, and farm household characteristics emerge as key factors influencing farmers’ land-use decisions and subsequent land-use patterns. Land reversion and abandonment in the study area have been significantly affected by the GFG program. Policy recommendations suggest potential avenues to enhance the effectiveness of the GFG program and to improve the efficient use of under-used farmland. Results may help inform the Chinese government as it crafts policy guiding a coupled rural migration and reforestation program of unprecedented scale.     

Review of China’s policy and management system for the paid use of sea area

As a carrier to develop various marine resources, sea area is regulated as a kind of important resources through legislation by many coastal countries with a management system for the paid use of sea area. Since the early 1990s, China has begun to implement the paid use and formed an institutional system comprised of three levels after developing it for more than two decades. From 2002 to 2015, the Chinese Government transferred the use right of sea area of 33,910 km² by paid use and levied a total of 75.89 billion CNY (11.328 billion US dollars) of sea area use payment. Apart from this, the Government has gained rich experience in operating and managing the compensable use of sea area. After retrospectively analyzing the development history of paid use of China’s sea area, the research presents an institutional structure and the implementation of the management system for the paid use of sea area and the main problems therein. On this basis, management policies and feasible policy suggestions are proposed. Research results from this study can provide available references for other developing countries and emerging economies to apply and improve native management system for the paid use of sea area.     

Are energy conservation and emission reduction policy measures effective for industrial structure restructuring and upgrading?

The use of energy conservation emission reduction policies to promote industrial restructuring and upgrading and thus facilitate energy conservation and emission reduction is one of the 10 important strategies of environmental management in China. The use of energy conservation emission reduction policies to promote industrial restructuring and upgrading and thus facilitate energy conservation and emission reduction is one of the important strategies of environmental management in China. Based on the systematic collection of 1,195 energy conservation emission reduction policies, we discuss the influence of individual measure and measure synergy of energy conservation and emission reduction policies respectively. The results show that the energy conservation and emission reduction policies have a significant effect on the overall promotion of industrial upgrading. The financial measures and guidance measures have a positive impact; the financial measures and guidance measures have significantly positive effect; however, the administrative measures, fiscal tax measures, and other economic measures do the opposite; the positive effect of the synergy of guidance measures and financial measures is greater than the negative effect of considering only the synergy of fiscal tax measures and other economic measures, and significantly greater than the negative effect of the synergy of administrative measures, fiscal tax measures, and other economic measures. We should strengthen and emphasize the use of the measure that has positive effect on industrial structure restructuring and upgrading individually and synergistically.     

Policy entrepreneurs in international river basins—getting climate adaptation on the cross-border water policy agenda

In this study, we look at the role which water policy entrepreneurs play in promoting and stimulating climate adaptation measures in international river basins. In a Dutch-German case study in the Rhine delta, we explore the range of strategies that policy entrepreneurs employ in cross-border water management to effectively anchor and embed climate adaptation in the water policy debate.

We focus on climate adaptation on the local and regional scale in the Deltarhine region where increased flooding and prolonged drought periods are expected under the current climate change scenarios with a considerable impact on flood protection, agricultural activities, drinking water and ecosystem development.

We analyse the impact of policy entrepreneurs while coping with the challenging cross-border setting and dealing with structural differences in national systems such as the legal and institutional framework. It is shown that whilst the European water guidelines advocate a river basin approach across borders, the guidelines do not (yet) play a catalyst role regarding climate adaptation, and the presence and activities of policy entrepreneurs contribute in putting climate adaptation on the cross-border policy agenda.

Finally, marked differences in the presence of entrepreneurs in Germany and the Netherlands are observed for which two important complementary explanations are offered relating to contextual elements of power asymmetry and dependency as well as different policy styles and organisational cultures in both countries.

     

Will progress in science and technology avert or accelerate global collapse? A critical analysis and policy recommendations

Industrial society will move towards collapse if its total environmental impact (I), expressed either in terms of energy and materials use or in terms of pollution, increases with time, i.e., dI/dt > 0. The traditional interpretation of the I = PAT equation reflects the optimistic belief that technological innovation, particularly improvements in eco-efficiency, will significantly reduce the technology (T) factor, and thereby result in a corresponding decline in impact (I). Unfortunately, this interpretation of the I = PAT equation ignores the effects of technological change on the other two factors: population (P) and per capita affluence (A). A more heuristic formulation of this equation is I = P(T)·A(T)·T in which the dependence of P and A on T is apparent. From historical evidence, it is clear that technological revolutions (tool-making, agricultural, and industrial) have been the primary driving forces behind successive population explosions, and that modern communication and transportation technologies have been employed to transform a large proportion of the world’s inhabitants into consumers of material- and energy-intensive products and services. In addition, factor analysis from neoclassical growth theory and the rebound effect provide evidence that science and technology have played a key role in contributing to rising living standards. While technological change has thus contributed to significant increases in both P and A, it has at the same time brought about considerable eco-efficiency improvements. Unfortunately, reductions in the T-factor have generally not been sufficiently rapid to compensate for the simultaneous increases in both P and A. As a result, total impact, in terms of energy production, mineral extraction, land-use and CO₂ emissions, has in most cases increased with time, indicating that industrial society is nevertheless moving towards collapse. The belief that continued and even accelerated scientific research and technological innovation will automatically result in sustainability and avert collapse is at best mistaken. Innovations in science and technology will be necessary but alone will be insufficient for sustainability. Consequently, what is most needed are specific policies designed to decrease total impact, such as (a) halting population growth via effective population stabilization plans and better access to birth control methods, (b) reducing total matter-energy throughput and pollution by removing perverse subsidies, imposing regulations that limit waste discharges and the depletion of non-renewable resources, and implementing ecological tax reform, and (c) moving towards a steady-state economy in which per-capita affluence is stabilized at lower levels by replacing wasteful conspicuous material consumption with social alternatives known to enhance subjective well-being. While science and technology must play an important role in the implementation of these policies, none will be enacted without a fundamental change in society’s dominant values of growth and exploitation. Thus, value change is the most important prerequisite for avoiding global collapse.

Mixed oligopoly,foreign penetration and China’s environmental policy: a research based on mixed oligopoly model

This paper analyzes how the foreign penetration affects China’s environment policy in a mixed oligopoly framework, and gets several interesting conclusions. First, our result shows that government should strengthen the degree of environmental policy along with increasing proportion of domestic ownership of multinational firms. Second, we show that an increase in domestic ownership of multinational firms raises not only domestic private firms’ profit but also public firm’s profit as well as social welfare. Third, the government will raise the environmental tax to control environmental damage.     

Research on the effects of command-and-control and market-oriented policy tools on China’s energy conservation and emissions reduction innovation

The impact of environmental regulation on technology innovation is a hot spot in current research where a large number of empirical studies are based on Porter Hypothesis (PH). However, there are still controversies in academia about the establishment of “weak” and “narrow” versions of PH. Based on the panel data of application for patent of energy conservation and emission reduction (ECER) technology of Chinese city scale during 2008–2014, comprehensive energy price, pollutant emission, etc., mixed regression model and systematic generalized method of moments method were adopted, respectively, to study the impact of market-oriented and command-and-control policy tool on China’s ECER technology innovation. The results show that the environmental regulation hindered the technological innovation in the immediate phase; however, it turned out to be positive in the first-lag phase. Hence, the establishment of “weak” PH is time-bounded. The command-and-control policy tool played a more positive role in promoting technological innovation in the first-lag phase than market-oriented policy tool. Therefore, “narrow” PH is not tenable. The reason is that the main participants of China’s ECER technology innovation are state-owned companies and public institutions. Regionally speaking, the impact which command-and-control policy tool has on technological innovation at sight was non-significant in the eastern, the central, and the western regions of China whilst market-oriented policy tool had a negative effect. And market-oriented policy tool in the central region had strongest negative effect, which would diminish in the eastern region and become weakest in the western region. This was related to regional energy consumption level and the market economic vitality.