Carbon-Trading Pilot Programs in China and Local Air Quality
AEA Papers and Proceedings
vol. 111,
May 2021
(pp. 391-95)
Abstract
China emits twice as much CO2 as the United States. Launched in seven regions in 2013–2014, China's pilot carbon-trading programs cover roughly 7 percent of China's CO2 emissions. These market-based policies offer the best existing evidence as to whether the national carbon-trading program starting in 2021 will curb emissions. Here, we analyze changes in air quality using visibility measures from weather stations. We find the pilot programs improved local air quality, and this was likely a co-benefit of reduced carbon emissions. However, these improvements were modest, and there is some evidence of pollution leakage to the nonpilot regions.Citation
Almond, Douglas, and Shuang Zhang. 2021. "Carbon-Trading Pilot Programs in China and Local Air Quality." AEA Papers and Proceedings, 111: 391-95. DOI: 10.1257/pandp.20211071Additional Materials
JEL Classification
- Q53 Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
- Q58 Environmental Economics: Government Policy
- O13 Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
- P28 Socialist Systems and Transitional Economies: Natural Resources; Energy; Environment