The Economics of Energy Policy in China: Implications for Global Climate Change

This book is the first systematic and comprehensive analysis of the economic implications of carbon abatement for the Chinese economy. It evaluates the economics of climate change and provides national, cost-effective policies for climate change. The book consists of three main parts, firstly, an analysis of the Chinese energy system to increase awareness of the implications of this sector for China's future carbon dioxide emissions, secondly, a macroeconomic analysis of carbon dioxide emissions limits using a newly-developed computable general equilibrium model of the Chinese economy; and fianlly, a cost-effective analysis of carbon abatement options by means of a technology-oriented dynamic optimization model. The author begins by introducing some of the economic aspects of climate change including the consequences of climate change,damage estimates of carbon dioxide emissions, strategies for responding to climate change and policy instruments to control carbon dioxide emissions. This discussion then focuses on the Chinese energy system and possible sectoral and macroeconomic effects of limiting carbon dioxide emissions. In this examination Dr Zhang considers the effects of recycling carbon tax revenues and compliance with carbon dioxide limits in China's power industry. The author also evaluates various economic models in analyzing cost estimates for limiting carbon dioxide emissions, including an input-output approach, dynamic optimization and a computable general equilibrium approach. Finally, there is a discussion of technological aspects of carbon abatement in the Chinese power industry. The Economics of Energy Policy in China will be of interest to energy and environmental economists and policymakers.