Understanding the interactions between emissions trading systems and renewable energy standards using a multi-regional CGE model of China

Ying Fan, Jie Wu, Govinda Timilsina () and Yan Xia

No 8159, Policy Research Working Paper Series from The World Bank

Abstract: Many countries have introduced policy measures, such as carbon pricing, greenhouse gas offsetting mechanisms, renewable energy standards, and energy efficiency improvements, to achieve their climate change mitigation targets. However, in many instances, these measures overlap in ways that may dilute each policy's greenhouse gas reduction potential. This study examines how a renewable energy standard in the power sector would interact with a national emission trading scheme that is introduced to achieve a greenhouse gas mitigation target. Using a static, multiregional computable general equilibrium model of China to simulate policy measures, the study finds that the addition of a separate renewable energy standard policy would increase the economic cost for achieving a target level of greenhouse gas mitigation. The study concludes that although renewable energy standard policies promote the use of renewable energies, they are an economic burden from the perspective of reducing greenhouse gas emissions if a carbon pricing mechanism is in place.

Keywords: Climate Change Mitigation and Green House Gases; Climate Change and Environment; Social Policy; Environmental&Natural Resources Law; Science of Climate Change; Legal Products; Environmental Strategy; Climate Change and Health; Legislation; Environmental Management; Regulatory Regimes; Judicial System Reform; Carbon Policy and Trading; Legal Reform (search for similar items in EconPapers)
Date: 2017-08-03
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://documents.worldbank.org/curated/en/260221501786888730/pdf/WPS8159.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:8159

Access Statistics for this paper

More papers in Policy Research Working Paper Series from The World Bank 1818 H Street, N.W., Washington, DC 20433. Contact information at EDIRC.
Bibliographic data for series maintained by Roula I. Yazigi ().