California's Cap-and-Trade Programme and Insights for China's Pilot Schemes

Publication Type

Journal Article

Date Published

05/2014

Abstract

California's cap-and-trade programme under the Assembly Bill 32 is a key element in California's comprehensive plan for reducing its greenhouse gas (GHG) emissions to 1990 levels by 2020. In China, separate local cap-and-trade pilot schemes are being developed to explore a market-based solution for addressing the country's increasing GHG emissions. The Californian cap-and-trade scheme and China's local pilots are similar in that both have been developed in the absence of a national emissions trading scheme. This paper reviews the Californian scheme and draws insights for China's pilots from various perspectives including the legal basis, institutional arrangement, programme structure, market design, the implementation process, and mechanisms for ensuring compliance.

Journal

Energy & Environment

Volume

25

Year of Publication

2014

Issue

3-4

Pagination

551-575