Between Market and State: Dilemmas of Environmental Governance in China's Sulphur Dioxide Emission Trading System

Julia Tao and Daphne Ngar-Yin Mah
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Julia Tao: Department of Public and Social Administration, and Governance in Asia Research Centre, 7/F, Academic Building, City University of Hong Kong, Tat Chee Avenue, Kowloon, Hong Kong
Daphne Ngar-Yin Mah: Governance in Asia Research Centre, City University of Hong Kong, 7/F, Block 2, To Yuen Building, 31 To Yuen Street, Kowloon Tong, Hong Kong

Environment and Planning C, 2009, vol. 27, issue 1, 175-188

Abstract: Beginning in the 1990s, China has completed two phases of emission trading pilots. In this paper we assess China's pilot programme and analyze how it has been constrained by major problems in three areas of governance capacities: state, policy, and administrative capacities. These problems reflect deeper and more profound dilemmas of market transition experienced by the Chinese government in the past three decades. The dilemmas have resulted in the development of a ‘state-led’ pseudomarket, instead of a full and ‘autonomous’ market, for emission trading in China. It is evidently clear that China still faces many challenges in establishing a market for emission trading which require strengthening its governing capacity in order to address effectively the issues of the rule of law, independent regulation, information disclosure, and public accountability.

Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:sae:envirc:v:27:y:2009:i:1:p:175-188

DOI: 10.1068/c0768

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