Controversy of International Carbon-motivated Border Tax Adjustment and Its Impact on China’s Manufacturing Industries

Carbon-motivated border tax adjustment (BTA) aims to compensate for the loss of competitiveness of carbon intensive products due to carbon dioxide abatement actions.Based on the analysis of the international background of carbon-motivated BTAs,this paper discusses the fundamental motivation leading to US policy transformation,the potential impacts of the policy on China’s manufacturing industries,and the compatibility of the policy to WTO rules.Carbon-motivated BTAs violate the fundamental principle of the UNFCCC,and potentially conflict with the core WTO principle of non-discrimination reflected in the GATT Articles I and III.However,Article XX of the GATT may be applicable.Thus,the author suggests several measures to alleviate the impacts of carbon-motivated BTAs,and puts forward countermeasures based on carbon consumption per capita.     

Impact Factors of Energy Productivity in China: An Empirical Analysis

This article developed a decomposition model of energy productivity on the basis of the economic growth model. Four factors were considered which may influence China’s energy productivity according to this model: technology improvement, resource allocation structure, industrial structure and institute arrangement. Then, an econometric model was employed to test the four factors empirically on the basis of China’s statistical data from 1978 to 2004. Results indicated that capital deepening con- tributes the most (207%) to energy efficiency improvement, and impact from labor forces (13%) is the weakest one in resource factor; industrial structure (7%) and institute innovation (9.5%) positively improve the energy productivity.     

China’s Import of Wastes and Its Implications

Abstract

The trade of wastes in the world has been increasing and China has become the largest importer of wastes. This paper examines the import trend of different wastes and finds out that the total import volume to China approved by the Chinese government keeps increasing and the illegal trade can not be banned despite repeated prohibitions; therefore, China is not only “a world factory”, but actually “a global garbage dump”. In order to well understand the implications of wastes import, this paper further analyzes the resource and environmental effects and risks of different wastes imports as well as the strong driving force of wastes imports. Based on these detailed analysis and solid data, policy recommendations are put forward to reduce the demand for raw materials, to further strengthen the inspection of and supervision over the international trade of the wastes that can be used as raw materials by using the life cycle analysis and risk analysis, to improve the environmental standards and strengthen the disposal capacity, to re-export the raw materials produced from the imported wastes, to develop the long-term planning for the import of wastes and to promote international cooperation.     

China’s Import of Wastes and Its Implications

The trade of wastes in the world has been increasing and China has become the largest importer of wastes. This paper examines the import trend of different wastes and finds out that the total import volume to China approved by the Chinese government keeps increasing and the illegal trade can not be banned despite repeated prohibitions; therefore, China is not only ＂a world factory＂, but actually ＂a global garbage dump＂. In order to well understand the implications of wastes import, this paper further analyzes the resource and environmental effects and risks of different wastes imports as well as the strong driving force of wastes imports. Based on these detailed analysis and solid data, policy recommendations are put forward to reduce the demand for raw materials, to further strengthen the inspection of and supervision over the international trade of the wastes that can be used as raw materials by using the life cycle analysis and risk analysis, to improve the environmental standards and strengthen the disposal capacity, to re-export the raw materials produced from the imported wastes, to develop the long-term planning for the import of wastes and to promote international cooperation.     

Population Growth,Available Resources,and Quality of Life:China’s Post-Reform Economic Development

Two opposing intellectual traditions and their contem-porary developments regarding the relations among population, available resources, and quality of life as reflected in economic growth are reviewed. What is at issue is whether population growth is detrimental to or beneficial for economic development. Neither of the extreme views gives a complete picture of the interplay among population, resources, and quality of life. Following previous literature on the topic, this paper establishes a more balanced approach that considers the function linking population and quality of life not constant but variable and regards the limitedness of resources as not absolute but relative to regions and societies. The proposed approach is more flexible in better explaining the relation between population and economic growth. China is examined as a case in point to shed light on the interaction of population growth, economic development, and available resources, and its recent post-economic reform experiences showcase the appropriateness of the synthetic approach.     

An analysis of China’s investment in the hydropower sector in the Greater Mekong Sub-Region

The Mekong River’s natural resources offer large benefits to its populations, but it also attracts the interest of foreign investors. Recently, Chinese firms, banks and government bodies have increasingly invested in large hydropower projects in the Greater Mekong Sub-Region. Due to China’s rapid economic growth, its rapid industrialisation and its limited domestic natural resources, the Chinese government has issued the ‘Going Out Strategy’ which promotes investments in overseas natural resources like water and energy resources. In search for climate-friendly low-carbon energy, cheap electricity and access to a growing market, Chinese institutions turn to Southeast Asia where Chinese institutions are currently involved in more than 50 on-going large hydropower projects as contractors, investors, regulators and financiers. These Chinese institutions have influence on environmental and social practices as well as on diplomatic and trade relations in the host countries. Currently, there are major gaps in understanding who is engaged, why, how and with what impacts. This paper therefore aims to assess the motives, actors, beneficiaries and the direct and indirect impacts of China’s investment in large hydropower projects in the Greater Mekong Sub-Region. The authors use the ‘Rising Powers Framework’ to assess these issues, which is an adapted version of the Asian Drivers Framework.     

China’s Export Expansion, Export Structure and Energy Consumption

Since the reform and opening up,China’s export trade has maintained a rapid growth;meanwhile,China’s energy consumption has been increasing sharply. "High export and high energy consumption" has become the feature of China’s trade and economic development.In this paper,based on the input-output analysis approach,the authors have conducted an empirical study on the export trade and energy consumption of 21 trade industrial sectors.The results show that,China is a big net exporter of embodied energy.Assuming that the export growth rate of embodied energy maintains to be about 23.6%,the average annual growth rate of the past 32 years,and based on the input-output data of 2005,by 2030 China’s net export of embodied energy would be over eight times more than the aggregate energy production,which is obviously infeasible.As a country of very low per capita energy,China must change its export pattern,encourage or restrain the export of different industrial sectors according to their energy consumption intensity,and promote structural change of energy-efficient exported products,so as to achieve the sustainable development.Accordingly,the authors put forward some suggestions.     

Technological Progress,Structural Change and China’s Energy Efficiency

Abstract

China has witnessed rapid economic development since 1978, and during the time, energy production and consumption developed at a tremendous speed as well. Energy efficiency which can be measured by energy consumption per unit of GDP, however, experienced continuous decrease. Theoretically, the change of energy efficiency can be attributed to industry structural change and technological change. In order to explain the transformation of Chinese energy efficiency, we adopt logarithmic mean Divisia index techniques to decompose changes in energy intensity in the period of 1994–2005. We find that technological change is the dominant contributor in the decline of energy intensity, but the contribution has declined since 2001. The change in industry structure has decreased the energy intensity before 1998, but raised the intensity after 1998. Decomposed technological effects for all sectors indicate that technological progresses in high energy consuming industries such as raw chemical materials and chemical products, smelting and pressing of ferrous metals, manufacture of non-metallic mineral products and household contribute are the principal drivers of China’s declining energy intensity.     

China’s Export Expansion,Export Structure and Energy Consumption

Abstract

Since the reform and opening up, China’s export trade has maintained a rapid growth; meanwhile, China’s energy consumption has been increasing sharply. “High export and high energy consumption” has become the feature of China’s trade and economic development. In this paper, based on the input–output analysis approach, the authors have conducted an empirical study on the export trade and energy consumption of 21 trade industrial sectors. The results show that, China is a big net exporter of embodied energy. Assuming that the export growth rate of embodied energy maintains to be about 23.6%, the average annual growth rate of the past 32 years, and based on the input–output data of 2005, by 2030 China’s net export of embodied energy would be over eight times more than the aggregate energy production, which is obviously infeasible. As a country of very low per capita energy, China must change its export pattern, encourage or restrain the export of different industrial sectors according to their energy consumption intensity, and promote structural change of energy– efficient exported products, so as to achieve the sustainable development. Accordingly, the authors put forward some suggestions.     

Analysis of material stock accumulation in China’s infrastructure and its regional disparity

Materials stocked in infrastructure provide necessary personal and economic services, and are also closely linked with massive resource extraction, energy consumption and waste generation. To support policy deliberations toward regional harmony and sustainable development, this paper examines the temporal change during 1978–2008 and spatial patterns of ten types of materials stocked in four major infrastructures (residential buildings, roads, railways, and water pipelines) in 31 provinces in China, and diagnoses regional disparity and driving factors by Theil index and multivariable regression based on panel data. It was found that the total material stock has boomed to 42.5 billion tons in 2008, with its per capita level increased by nine times over that in 1978. Over 90 % of materials are concentrated in residential buildings and roads, and are spatially inclined to decrease from coastal regions to inland areas. Since China has shifted its strategy from an inclined to harmonious regional development, the overall inequality of per capita material stock has been changing toward equality with its scale contributed mainly by inter-regional inequality, and downward trend affected dominantly by intra-regional inequality. To balance the growth speed across regions meanwhile, to develop economy and attract foreign investment in each region, would be a promising route towards reducing regional inequality. Moreover, the enhancement of governmental performance and construction of each sector’s share would also be effective for decreasing inter-regional gaps.     

Discussion on the Mode of China’s Low-carbon Society and Construction Routes

In responding to global climate change,the idea of low-carbon economy emerges as the times require.Developing low-carbon economy is based on the construction of low-carbon society.The so called "two-orientation society"(resources conservation orientated society and environmental friendly orientated society) is the concrete representation of low-carbon society with Chinese characteristics,and an actual action for China in developing low-carbon economy.Based on urban agglomeration,the paper discusses the meaning of and the route to low-carbon society which would better reflect the intrinsic requirements of such a society.     

Are SDGs suitable for China’s sustainable development assessment? An application and amendment of the SDGs Indicators in China

In order to further ensure that the 2030 Agenda for Sustainable Development is to be implemented and the action measures of all countries are consistent, the United Nations has put forward a set of indicators to monitor and evaluate the progress of global sustainable development. This set of evaluation indicators is aimed for global and regional progress. An important feature of the evaluation indicators is that they are internationally comparable, but due to the large differences in the levels of sustainable development among countries, this framework of evaluation indicators has a disadvantage that it does not apply to tracking the progress of sustainable development at the national level. This paper focuses on the analysis of specific issues in the application of the global sustainable development indicators framework to meet the goals and targets of the UN and builds a system of evaluation indicators to assess the progress of sustainable development at the national level in China, and offers a perspective to assess China’s progress as well.     

Study on the efficiency and regional disparity of green technology innovation in China’s industrial companies

This paper first constructed a system to evaluate the innovation efficiency of industrial companies within Mainland China. Then, a principal component analysis (PCA) was performed to these indicators for dimensionality reduction, so as to figure out the technology innovation efficiency in these two phases, respectively. Finally, the overall efficiency of industrial companies in different regions was estimated and factorized via data envelopment analysis (DEA). The results showed that: (1) the efficiency of green technology innovation of industrial companies in China was relatively low as a whole, which mainly resulted from pure technical efficiency (PTE). Further, this huge gap continues to expand in these regions. And both PTE and scale efficiency (SE) in central and western regions leave much to be expected. (2) In the first phase of green technology development, when environmental factors were concerned, the efficiency was much lower than that without environmental considerations. Besides, the central and western regions were facing increasingly severe environmental problems, and there was a wide disparity in technology development efficiency among eastern, central, and western regions. (3) In the second phase of green technology commercialization, there were still more rooms for improvement in raising the efficiency of green technology innovation, and the efficiency in eastern, central, and western regions was ranked from highest to lowest. (4) Liaoning, Hebei, Heilongjiang, Xinjiang, Shanxi, Inner Mongolia, Yunnan, and Qinghai should focus on improving their technology; Jilin, Jiangxi, Anhui, and Guangxi should make their efforts to reduce resource redundancy; whereas Ningxia and Gansu should try to solve the above two issues.     

Humble Opinions on the Relationship between the Percentage of Urban Residents in an Urban Region and the Economic Status in This Region in China

It is a fact that in U.S. the immigration between rural areas and city areas is free, but in China this type of immigration is restricted by HUKOU system （Hukou, namely the household registration system, was designed to control rural-urban in China）. All of those national policies in city areas are much better than those in rural areas, so those corresponding differences bring about great discrepancy of the economic status （mainly including GDP per person and income per resident） between rural and city areas in the same urban region, especially in different urban re- gions because the percentage of urban residents in those urban regions is in-equable. The present paper mainly researches the topic of relationship between the percentage of urban residents and the economic status in an urban region in China, including the relationship between the economic and the political functions of a settlement in China during the process of urbanization.     

Population Growth, Available Resources, and Quality of Life： China＇s Post-Reform Economic Development

Two opposing intellectual traditions and their contem- porary developments regarding the relations among population, available resources, and quality of life as reflected in economic growth are reviewe...     

Analysis of CO2 emissions peak: China’s objective and strategy

Establishing positive and urgent targets for CO₂ reduction and emission peak, and promoting energy conservation and energy structure adjustment are among the strategies to address global climate change and CO₂ emissions reduction. They are also means to break through the constraints of domestic resources and environment, and internal needs, to achieve sustainable development. Generally speaking, a country's CO₂ emission peak appears after achieving urbanization and industrialization. By then, connotative economic growth will appear, GDP will grow slowly, energy consumption elasticity will decrease, and energy consumption growth will slow down – dependent mainly on new and renewable energies. Fossil fuel consumption will not increase further. When CO₂ emission reaches its peak, the annual reduction rate of CO₂ intensity of GDP is greater than GDP annual growth rate; and the annual reduction rate of CO₂ intensity of energy use is greater than the annual growth rate of energy consumption. Therefore, three important approaches to promotion of CO₂ emission peak can be concluded: maintaining reasonable control of GDP growth, strengthening energy conservation to significantly reduce the GDP energy intensity, and optimizing the energy mix to reduce the CO₂ intensity of energy use. By around 2030, China will basically have completed its rapid development phase of industrialization and urbanization. Connotative economic growth will appear with the acceleration of industrial structure adjustment. The target of GDP energy intensity will still be to maintain an average annual reduction of 3% or higher. The proportion of non-fossil fuels will reach 20–25%, and the aim will be to maintain an average annual growth rate of 6–8%. The total annual energy demand growth of 1.5% will be satisfied by the newly increased supply of non-fossil fuels. The annual decline in CO₂ intensity of GDP will reach 4.5% or higher, which is compatible with an average annual GDP growth rate of approximately 4.5% in order to reach CO₂ emission peak. This corresponds to the level of China's potential economic growth. Achieving CO₂ emission peak will not impose a rigid constraint on economic development, but rather promote economic development and accelerate the transformation of green, low-carbon development. The CO₂ emission peak can be controlled with a cap of 11 billion tons, which means that CO₂ emission will increase by less than 50% compared with 2010. The per capita emission peak will be controlled at a level of less than 8 tons, which is lower than the 9.5 tons in the EU and Japan and much lower than the 20 tons in the US, future economic and social development faces many uncertainties in achieving the CO₂ emission peak discussed above. It depends on current and future strategies and policies, as well as the pace and strength of economic transformation, innovation, and new energy technologies. If the economic transformation pattern fails to meet expectations, the time required to reach CO₂ emission peak would be delayed and the peak level would be higher than expected. Therefore, we need to coordinate thoughts and ideas and deploy these in advance; to highlight the strategic position of low-carbon development and its priorities; to enact mid- to long-term energy development strategies; and to establish and improve a system of laws, regulations, and policies as well as an implementation mechanism for green, low-carbon development. Oriented by positive and urgent CO₂ reduction and peak targets, the government would form a reversed mechanism to promote economic transformation and embark on the path of green, low-carbon development as soon as possible.     

Empirical analysis of carbon tariff’s effect on the export structure of China’s manufacturing industry and social welfare based on the GTAP model

In recent years, carbon emissions have gradually evolved from an environment issue into a political and economic one. Carbon tariff has brought about new trade barriers of developed countries, and in order to enhance the industrial competitiveness of developed countries, it will produce unfavorable impact on developing countries. Concentrated on the manufacturing industry, which is the most intensive high-carbon industry in China’s export structure, this article studies the relationship between carbon tariff policy and industry structure of export trade and builds up a relation between climate change and international trade. First, by means of establishing a partial equilibrium model, it applies geometric analysis and mathematical analysis to compute the impact on China’s manufacturing export trade and the consequences of the introduction of the US carbon tariff to China’s manufacturing industry that has already imposed a domestic shipping carbon tax. Furthermore, with the application of the GTAP model, it estimates the overall economic and welfare effects on China’s manufacturing industry if the US and Europe introduce carbon tariff by means of four ways, and then analyzes the influence on China’s manufacturing industry export structure and social welfare as well. The result shows that the introduction of the US carbon import tariff lowers China’s export price and export volume, and the implementation of a domestic carbon tax justifies a higher export price and a lower export volume for China. However, the degree of export reduction is smaller than that under the effect of the US carbon tariff. In the case of developed countries imposing carbon tariff on China’s energy-intensive industries, such as chemical rubber products, oil and coal-processing industry and paper industry, whose export would be reduced, the negative impact on the paper industry is the severest, which will decrease the paper industry’s export ranging from 1.79% to 6.05%, whereas the other industries’ export will increase. Anyhow, it will promote China’s manufacturing industry to adjust the export structure to a certain extent. In addition, it will lead to a decrease in China’s welfare, with a decrease between $2.134 billion and $8.347 billion. Finally, this paper provides information on international coordination, export structure adjustment and green manufacturing adjustment as a reference for the development of China’s manufacturing industry.     

An Empirical Study on the Environmental Kuznets Curve for China’s Carbon Emissions:Based on Provincial Panel Data

Based on the Environmental Kuznets Curve theory,the authors choose provincial panel data of China in 1990 2007 and adopt panel unit root and co-integration testing method to study whether there is Environmental Kuznets Curve for China’s carbon emissions.The research results show that:carbon emissions per capita of the eastern region and the central region of China fit into Environmental Kuznets Curve,but that of the western region does not.On this basis,the authors carry out scenario analysis on the occurrence time of the inflection point of carbon emissions per capita of different regions,and describe a specific time path.     

An Empirical Study on the Environmental Kuznets Curve for China’s Carbon Emissions: Based on Provincial Panel Data

Abstract

Based on the Environmental Kuznets Curve theory, the authors choose provincial panel data of China in 1990–2007 and adopt panel unit root and co-integration testing method to study whether there is Environmental Kuznets Curve for China’s carbon emissions. The research results show that: carbon emissions per capita of the eastern region and the central region of China fit into Environmental Kuznets Curve, but that of the western region does not. On this basis, the authors carry out scenario analysis on the occurrence time of the inflection point of carbon emissions per capita of different regions, and describe a specific time path.     

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.