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Richard Morgenstern, senior fellow at Resources for the Future, will present a talk titled "Update on China’s CO2 Pilot Cap and Trade Programs" at Duke May 1.
In less than three decades China has developed from a relatively poor country to become the world’s second-largest economy after the U.S. Recognizing that the resulting damages to human health and the environment are increasingly unacceptable both at home and abroad, Chinese authorities have embarked on a number of efforts to improve overall environmental conditions while maintaining strong economic growth. A key element of this new strategy is a series of pilot cap and trade programs to reduce CO2 emissions in the highly industrialized, mostly eastern section of the country. The near term aim of the pilots is to reduce emissions and to build the institutions necessary for long run operation of a trading regime. The emission caps of the seven pilots currently in operation or planned are generally in line with the energy intensity targets established in China’s 12th Five Year Plan, and many of the key design elements of the pilots resemble those adopted in the EU ETS, the California trading program and others. At the same time, some design elements differ markedly from the western programs, reflecting the particular economic and institutional circumstances in China.
This talk is part of the Nicholas Institute for Environmental Policy Solutions and the University Program in Environmental Policy seminar series featuring leading experts discussing a variety of pressing environmentally focused topics.