free ebooks ==> www.ebook777.com Energy and Environmental Policy in China www.ebook777.com M2699 - ZHANG 9781848445468 PRINT.indd i 24/08/2011 10:49 free ebooks ==> www.ebook777.com NEW HORIZONS IN ENVIRONMENTAL ECONOMICS Series Editors: Wallace E Oates, Professor of Economics, University of Maryland, College Park and University Fellow, Resources for the Future, USA and Henk Folmer, Professor of Research Methodology, Groningen University and Professor of General Economics, Wageningen University, The Netherlands This important series is designed to make a significant contribution to the development of the principles and practices of environmental economics It includes both theoretical and empirical work International in scope, it addresses issues of current and future concern in both East and West and in developed and developing countries The main purpose of the series is to create a forum for the publication of high quality work and to show how economic analysis can make a contribution to understanding and resolving the environmental problems confronting the world in the twenty-first century Recent titles in the series include: Scarcity, Entitlements and the Economics of Water in Developing Countries P.B Anand Technological Change and Environmental Policy A Study of Depletion in the Oil and Gas Industry Shunsuke Managi Environmental Governance and Decentralisation Edited by Albert Breton, Giorgio Brosio, Silvana Dalmazzone and Giovanna Garrone Choice Experiments Informing Environmental Policy A European Perspective Edited by Ekin Birol and Phoebe Koundouri Markets for Carbon and Power Pricing in Europe Theoretical Issues and Empirical Analyses Edited by Francesco Gullì Climate Change and Agriculture An Economic Analysis of Global Impacts, Adaptation and Distributional Effects Robert Mendelsohn and Ariel Dinar Distributional Impacts of Climate Change and Disasters Concepts and Cases Edited by Matthias Ruth and María E Ibarrarán Governing the Environment Salient Institutional Issues Edited by Albert Breton, Giorgio Brosio, Silvana Dalmazzone and Giovanna Garrone Chinese Economic Development and the Environment Shunsuke Managi and Shinji Kaneko Technology, Natural Resources and Economic Growth Improving the Environment for a Greener Future Shunsuke Managi Energy and Environmental Policy in China Towards a Low-carbon Economy ZhongXiang Zhang M2699 - ZHANG 9781848445468 PRINT.indd ii 24/08/2011 10:49 free ebooks ==> www.ebook777.com Energy and Environmental Policy in China Towards a Low-carbon Economy ZhongXiang Zhang Senior Fellow, Research Program, East–West Center, USA NEW HORIZONS IN ENVIRONMENTAL ECONOMICS Edward Elgar Cheltenham, UK • Northampton, MA, USA www.ebook777.com M2699 - ZHANG 9781848445468 PRINT.indd iii 24/08/2011 10:49 free ebooks ==> www.ebook777.com © ZhongXiang Zhang 2011 All rights reserved No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical or photocopying, recording, or otherwise without the prior permission of the publisher Published by Edward Elgar Publishing Limited The Lypiatts 15 Lansdown Road Cheltenham Glos GL50 2JA UK Edward Elgar Publishing, Inc William Pratt House Dewey Court Northampton Massachusetts 01060 USA A catalogue record for this book is available from the British Library Library of Congress Control Number: 2011926261 ISBN 978 84844 546 03 Typeset by Servis Filmsetting Ltd, Stockport, Cheshire Printed and bound by MPG Books Group, UK M2699 - ZHANG 9781848445468 PRINT.indd iv 24/08/2011 10:49 free ebooks ==> www.ebook777.com To my father Zhang Shouyong on the twentieth anniversary of his death www.ebook777.com M2699 - ZHANG 9781848445468 PRINT.indd v 24/08/2011 10:49 free ebooks ==> www.ebook777.com M2699 - ZHANG 9781848445468 PRINT.indd vi 24/08/2011 10:49 free ebooks ==> www.ebook777.com Contents List of figures List of tables List of boxes List of abbreviations Preface viii ix x xi xiii Introduction Effective environmental protection in the context of government decentralization Is it fair to treat China as a Christmas tree to hang everybody’s complaints? Putting its own energy saving into perspective Assessing China’s carbon intensity pledge for 2020: stringency and credibility issues and their implications In what format and under what time frame would China take on climate commitments? A roadmap to 2050 The US proposed carbon tariffs, WTO scrutiny and China’s responses Conclusions: China in the transition to a low-carbon economy References Index 39 67 83 103 125 145 165 vii www.ebook777.com M2699 - ZHANG 9781848445468 PRINT.indd vii 24/08/2011 10:49 free ebooks ==> www.ebook777.com Figures 2.1 3.1 3.2 3.3 4.1 4.2 5.1 Percentage of air pollutants tied to export manufacturing in the Pearl River Delta and Shenzhen, China Energy use per unit of GDP in China, 1980–2007 (tons of coal equivalent per US$ 1000 in 1980 prices) Comparison of fuel economy standards for vehicles Cumulative installed wind power capacity by country, 1980–2009 Decoupling CO2 emissions from economic growth in China, 1980–2007 China’s energy intensity index and carbon intensity index (1980 = 100), 1980–2007 CO2 emissions in China and the US, 1990–2025 27 41 50 56 68 71 87 viii M2699 - ZHANG 9781848445468 PRINT.indd viii 24/08/2011 10:49 free ebooks ==> www.ebook777.com Tables 2.1 2.2 2.3 2.4 2.5 3.1 3.2 3.3 3.4 3.5 4.1 4.2 4.3 4.4 Maximum fines by category of violators of environmental laws and regulations in China Differentiated tariffs for eight energy-guzzling industries in China Shares of the central and local governments in the government revenue and expenditure in China, 1993–2009 Levels of charges for atmospheric pollutants in China Environmental performance ratings of the participating firms under the Green Watch program in Jiangsu province, China, 2001–6 Coal-fired power generation technologies in China, 2005–30 (GW) Residential buildings by energy-efficient standards in Beijing and Tianjin, China Consumption tax rates for cars in China Vehicle emission standards and the time to enter into force in China, ASEAN and EU Pipeline of CDM projects at the validation stage or beyond (as of December 2010) Breakdown of the contributions to CO2 emissions growth in China, 1980–2007 (MtC) Preliminary and final values for total primary energy consumption in China, 1990–2008 Preliminary and final values for coal consumption in China, 1990–2008 A reduction in China’s energy intensity: preliminary value versus final value 10 17 23 31 45 47 49 52 62 68 76 77 78 ix www.ebook777.com M2699 - ZHANG 9781848445468 PRINT.indd ix 24/08/2011 10:49 free ebooks ==> www.ebook777.com Boxes 2.1 3.1 3.2 5.1 6.1 6.2 Competing interests between the central government and local governments regarding small cars China’s dispute on automobile part tariffs under WTO Local content requirement for wind power projects China’s CO2 emissions embedded in trade Core WTO principles Implications of the findings of the WTO shrimp-turtle dispute 11 49 58 85 105 109 x M2699 - ZHANG 9781848445468 PRINT.indd x 24/08/2011 10:49 free ebooks ==> www.ebook777.com 162 Energy and environmental policy in China Zhang, Z.X (2004a), ‘Meeting the Kyoto targets: the importance of developing country participation’, Journal of Policy Modeling, 26 (1), 3–19 Zhang, Z.X (2004b), ‘Open trade with the US without compromising Canada’s ability to comply with its Kyoto Target’, Journal of World Trade, 38 (1), 155–82 Zhang, Z.X (2005), ‘Sustainable energy development in China: challenges ahead to 2020’, The Keynote Address at the International Conference on Staying Ahead of the Energy Scenarios, 11 November, Bangkok Zhang, Z.X (2006a), ‘Towards an effective implementation of clean development mechanism projects in China’, Energy Policy, 34 (18), 3691–701 Zhang, Z.X (2006b), ‘The World Bank’s prototype carbon fund and China’, Journal of Energy and Development, 31 (2), 157–71 Zhang, Z.X (2007a), ‘China’s reds embrace green’, Far Eastern Economic Review, 170 (5), 33–7 Zhang, Z.X (2007b), ‘China is moving away the pattern of “develop first and then treat the pollution”’, Energy Policy, 35, 3547–9 Zhang, Z.X (2007c), ‘Greening China: can Hu and Wen turn a test of their leadership into a legacy?’, Presented at the Plenary Session on Sustainable Development at the first-ever Harvard College China-India Development and Relations Symposium, 30 March–2 April, New York City Zhang, Z.X (2007d), ‘Energy and environmental policy in Mainland China’, The Keynote Address at the Cross-Straits Conference on Energy Economics and Policy, organized by the Chinese Association for Energy Economics, 7–8 November, Taipei Zhang, Z.X (2007e), ‘Why has China not embraced a global cap-andtrade regime?’, Climate Policy, (2), 166–70 Zhang, Z.X (2007f), ‘Doing trade and climate policy together’, in A Najam, M Halle and R Meléndez-Ortiz (eds), Trade and Environment: A Resource Book, Winnipeg, Canada and Geneva, Switzerland: International Institute for Sustainable Development and International Center for Trade and Sustainable Development, pp 61–2 Zhang, Z.X (2007g), ‘China, the United States and technology cooperation on climate control’, Environmental Science and Policy, 10 (7–8), 622–8 Zhang, Z.X (2008), ‘Asian energy and environmental policy: promoting growth while preserving the environment’, Energy Policy, 36 (10), 3905–24 Zhang, Z.X (2009a), ‘Multilateral trade measures in a post-2012 climate change regime? What can be taken from the Montreal Protocol and the WTO?’, Energy Policy, 37 (12), 5105–12 Zhang, Z.X (2009b), ‘Encouraging developing country involvement in M2699 - ZHANG 9781848445468 PRINT.indd 162 24/08/2011 10:50 free ebooks ==> www.ebook777.com References 163 a post-2012 climate change regime: carrots, sticks or both?’, in United Nations Environment Programme and the EU ADAM Project (eds), Trade and Climate Policies in a Post-2012 World, Geneva: United Nations Environment Programme, pp 79–85 Zhang, Z.X (2010a), ‘Is it fair to treat China a Christmas tree to hang everybody’s complaints? Putting its own energy-saving into perspective’, Energy Economics, 32 (Supplement 1), S47-S56 Zhang, Z.X (2010b), ‘The US proposed carbon tariffs, WTO scrutiny and China’s responses’, International Economics and Economic Policy, (2–3), 203–25 Zhang, Z.X (2010c), ‘China in the transition to a low-carbon economy’, Energy Policy, 38 (11), 6638–53 Zhang, Z.X (2010d), ‘Copenhagen and beyond: reflections on China’s stance and responses’, in E Cerdá and X Labandeira (eds), Climate Change Policies: Global Challenges and Future Prospects, Cheltenham, UK and Northampton, MA: Edward Elgar, pp 239–53 Zhang, Z.X (2010e), ‘Assessing China’s energy conservation and carbon intensity: how will the future differ from the past?’, in R Garnaut, J Golley and L.G Song (eds), China: The Next Twenty Years of Reform and Development, Canberra: Australian National University E-Press, Brookings Institution Press and Social Sciences Academic Press, pp 99–125 Zhang, Z.X (2010f), ‘Liberalizing climate-friendly goods and technologies in the WTO: product coverage, modalities, challenges and the way forward’, in United Nations, Trade and Environment Review 2009/2010: Promoting Poles of Clean Growth to Foster the Transition to a More Sustainable Economy, UNCTAD/DITC/TED/2009/2, Geneva, Switzerland: United Nations Conference on Trade and Development, pp 178–83 Zhang, Z.X (2011a), ‘In what format and under what timeframe would China take on climate commitments? A roadmap to 2050’, International Environmental Agreements: Politics, Law and Economics, 11 Zhang, Z.X (2011b), ‘Effective environmental protection in the context of government decentralization’, International Economics and Economic Policy, Zhang, Z.X and L Assunỗóo (2004), Domestic climate policy and the WTO’, The World Economy, 27 (3), 359–86 Zhang, Z.X and A Baranzini (2004), ‘What we know about carbon taxes? An inquiry into their impacts on competitiveness and distribution of income’, Energy Policy, 32 (4), 507–18 Zheng, X and S You (2007), ‘Heat reform in Tianjin China’, Unpublished manuscript, School of Environmental Engineering, Tianjin University, Tianjin, China www.ebook777.com M2699 - ZHANG 9781848445468 PRINT.indd 163 24/08/2011 10:50 free ebooks ==> www.ebook777.com 164 Energy and environmental policy in China Zhu, J.H (2010), ‘Six ministries and agencies claim those utilities that fail to implement the differentiated tariffs will face a penalty equaling to five times that of supposed revenues’, People Net, 22 May, available at: http://finance.sina.com.cn/chanjing/cyxw/20100522/07037984663 shtml Zhu, X.R (2010), ‘China Electricity Council released data on fossil fuelfired power plants in 2009’, China Energy News, 19 July, available at: http://paper.people.com.cn/zgnyb/html/2010-07/19/content_572802 htm M2699 - ZHANG 9781848445468 PRINT.indd 164 24/08/2011 10:50 free ebooks ==> www.ebook777.com Index Ahmad, N 85 air pollution and export manufacturing 27 levels of charges 8, 23 see also pollution alternative energy see renewable energy sources An, F 50 Andersen, M 46 ASEAN, vehicle emission standards 51, 52 Asian Development Bank, and clean development mechanism (CDM) 612 Assunỗóo, L 22, 38, 103, 109, 110, 115 Atmosphere Pollution Prevention and Control Act 8, 23 Australia fuel economy standards for vehicles 50 uranium resources and nuclear power 61 Bali Action Plan (BPA) 103, 110, 118 Ball, P 85 Ban, J 33 Baranzini, A 46 Baumert, K 70 benzene contamination 7–8 Berger, J 109 Bhagwati, J 103 biomass power and feed-in tariff 56–7 see also renewable energy sources blacklists industrial projects 14, 127 state-owned enterprises 29 ten most polluted cities 12–13, 14, 127 Bosetti, V 95 Bounds, A 105 Bovenberg, A 111–12 Bradsher, K 45, 138 Broder, J 114, 124 Canada fuel economy standards for vehicles 50 International Development Agency, and clean development mechanism (CDM) 61–2 and WTO automobile part tariffs 49–50 carbon capture 91, 137–8 carbon emissions border carbon adjustment (BCA) measures in US climate legislations, proposed 104–7, 114–16 cap-and-trade scheme, and US proposed carbon tariffs 106–7, 114–16, 117, 118, 119, 141 and climate commitments and roadmap to 2050 84–7 and consumption of importing countries 85–6 reasons for increasing 39–40 world’s largest 1–2, 39 see also emissions carbon intensity, binding targets during fourth commitment period 98, 142–3 carbon intensity pledge for 2020 67–82 assessment of feasibility, and business as usual suggestion 69–75 and carbon trading 81, 131 CO2, contributions to emissions growth 68–9 CO2 emissions and economic growth 67–9, 74, 117 coal consumption data 77, 135–6 and coal-fired power plants, closure 165 www.ebook777.com M2699 - ZHANG 9781848445468 PRINT.indd 165 25/08/2011 13:21 free ebooks ==> www.ebook777.com 166 Energy and environmental policy in China of small, inefficient 43–4, 72, 96, 130–131, 136–7 and Copenhagen Accord 69, 70, 78–9, 140, 141 and energy consumption data, reliability of 75–8 and energy intensity index 70–71, 72, 78, 120 and energy intensity index, and local government involvement 80 and energy-saving goal, challenge of 71–2, 128, 141–2 and financial crisis 70 and historical trend of energy saving 74–5 and local rolling blackouts 72 measurement yardstick 74 statistics on energy and GDP, reliability of 75–9 and transition to low-carbon economy 126 and World Energy Outlook 2009 (IEA) 72–4 see also climate commitments and roadmap to 2050 Carraro, C 70 Chakravarty, S 95 Charnovitz, S 103 chemical oxygen demand discharge (COD) 2, 126, 129 Chen, Y 132, 133 Chung, O 33 clean development mechanism (CDM) participation in 59, 61–4, 132 structural limitations of 92 see also Kyoto Protocol climate commitments and roadmap to 2050 83–102 absolute emissions caps, possible timescale 90–93, 95, 117, 142–4 baseline emissions and international consultation 96–7 binding carbon intensity targets during fourth commitment period 98, 142–3 binding emissions caps starting fifth commitment period 98 and carbon capture 91, 137–8 and carbon emissions 84–7 M2699 - ZHANG 9781848445468 PRINT.indd 166 carbon emissions, and consumption of importing countries 85–6 clean development mechanism (CDM), structural limitations of, and emissions caps 92 CO2 emissions embodied in trade 85–7 CO2 emissions, projected 94–5 and coal dependency 83, 90, 91 and coal-fired plants, decommissioning of 43–4, 72, 96, 130–131, 136–7 and Copenhagen Climate Change Summit agreement 93–4 developing countries’ emissions, possibility of misunderstanding over 94–5 emission caps and first commitment period 91 emissions’ targets, costs associated with 97–8 energy efficiency and energy conservation 96 energy intensity level yardstick for 2020, and economic growth 97 and energy-saving and pollutantcontrol goals 96 energy-intensive industrial production 83–4, 88 and GDP revision 140–141 and greenhouse gas emissions in industrialized countries, proposals for future 95 and greenhouse gas emissions, per capita 84 India, comparison with 83–4 international climate negotiations, China accused of delaying 94 and job outsourcing 86 and Kyoto, US withdrawal from 87–9 and population growth 84 and projected 2020 baseline carbon emissions 90–91 quantified domestic commitments during second commitment period, further credible 96, 142 and renewable energies 96 roadmap to 2050 93–8 25/08/2011 13:21 free ebooks ==> www.ebook777.com Index and transition to low-carbon economy 140–144 treaty signing and starting date, lag between 92 unit energy consumption 84–7 and US Waxman–Markey bill (Clean Energy and Security Act) 89, 91, 93, 100–101 voluntary no lose targets during third commitment period, suggested 92, 96–8, 142 and World Energy Outlook (IEA) 90–91 see also carbon intensity pledge for 2020 CO2 emissions contributions to emissions growth 68–9 and economic growth 67–9, 74, 117 embodied in trade 85–7 projected reductions 63–4 projected, and roadmap to 2050 94–5 see also carbon emissions; emissions coal coal-fired power plants, accelerating closure of small, inefficient 43–4, 72, 96, 130–131, 136–7 coal-fired units to equip with FGD facility and pay pollution charges 46–7, 131, 137 consumption 42, 43–4 consumption, and carbon intensity pledge for 2020 77, 135–6 dependency, and roadmap to 2050 83, 90, 91 enterprise awards for every ton of coal equivalent saved (tCE) 25 power generation and transition to low-carbon economy 135–8 resources, royalties on 22 see also fossil fuel Copenhagen Accord 2, 69, 70, 78–9, 93–4, 140, 141 Cyranoski, D 132 Dai, L 21 Dasgupta, S 30, 33 Deng, L 29 Denmark, wind power installations 56 167 developing countries emissions, possibility of misunderstanding over 94–5 and United Nations Framework Convention on Climate Change (UNFCCC) 103–4, 117–19 Doyle, A 92, 119 Dröge, S 119 eco-labeling 28, 29 economic policies capital market investment 32–3 environmental protection and government decentralization 21–7 and market-based instruments 22–4, 129 supportive 25 Ekins, P 46 electricity use restriction 72, 126 emissions absolute emissions caps, possible timescale 90–93, 95, 117, 142–4 baseline, and international consultation 96–7 binding caps starting fifth commitment period 98 and coal burning emission caps and first commitment period, and roadmap to 2050 91 and export manufacturing 27 targets, costs associated with, and roadmap to 2050 97–8 vehicle see vehicles see also carbon emissions; CO2 emissions; greenhouse gas emissions; NOx emissions; pollution; SO2 emissions energy consumption data, reliability of 75–8 consumption growth 2–3 consumption, unit, and roadmap to 2050 84–7 and GDP, reliability of statistics 75–9 input indicator, and five-year plan 2, 69, 126 subsidies, reduction in 22, 128–9 energy intensity environmental protection and www.ebook777.com M2699 - ZHANG 9781848445468 PRINT.indd 167 25/08/2011 13:21 free ebooks ==> www.ebook777.com 168 Energy and environmental policy in China government decentralization 15–16, 19 index, and carbon intensity pledge for 2020 70–71, 72, 78, 80, 120 and industrial production 83–4, 88 targets, and National Development and Reform Commission (NDRC) 19 energy saving in perspective 39–66 bidding-based tariffs and feed-in tariffs 56–9 biomass power and feed-in tariff 56–7 carbon emissions, reasons for increasing 39–40 clean development mechanism (CDM), participation in 59, 61–4, 132 CO2 emissions, projected reductions 63–4 and coal consumption 42, 43–4 coal- and oil-fired power plants, accelerating closure of small, inefficient 43–4, 72, 96, 130–131, 136–7 coal-fired power generation technologies 45 coal-fired units to equip with FGD facility and to pay pollution charges, mandating 46–7, 131, 137 electricity use restriction 72, 126 energy efficiency, increasing, and cutting pollutants 40–53, 62–3 energy use per unit of GDP 41 fossil fuel-fired units, encouraging construction of cleaner, more efficient 44–6 fuel economy standards for passenger vehicle fleet 48–9 fuel economy standards for vehicles, comparisons with other countries 50 historical trend of 74–5 hydropower 54, 62–3 and industry sector 41–2 Mega Wind Power Base Program 56 non-hydropower renewable energies targets 54 and nuclear accidents 139–40 M2699 - ZHANG 9781848445468 PRINT.indd 168 nuclear power, pressure water reactor type 59–61 nuclear waste processing and storing 139 and post-Kyoto commitments 64–5 and power generation 43–7 and power shortages 55 public transport system improvements 51 Renewable Energy Law 55 and renewable energy use 53–9 residential buildings 47–8 responsibility agreements, National Development and Reform Commission (NDRC) 42 solar energy and ‘Golden Sun’ program 54, 133–5 solar power subsidies 134–5 supercritical (SC) power generation technology 44, 45–6, 137 Top 1000 Enterprises Energy Conservation Action Program 19–20, 42–3, 63 and transition to low-carbon economy 126–7 transport sector 48–53 ultra-supercritical (USC) power generation technology 44, 45–6, 137 uranium resources and nuclear power 61, 139 vehicle emission standards 51–3, 130–131 vehicle emission standards, and trade-in subsidies 53 vehicle excise tax and energy-efficient vehicles 48–9 wind power see wind power WTO automobile part tariffs, dispute on 49–50 energy-saving goals challenge of, and carbon intensity pledge for 2020 71–2, 128, 141–2 and transition to low-carbon economy 126–7 environmental protection and government decentralization 7–38 blacklist of industrial projects 14, 127 25/08/2011 13:21 free ebooks ==> www.ebook777.com Index blacklist of state-owned enterprises 29 blacklist of ten most polluted cities 12–13, 14, 127 cost-conscious companies and pollution tolerance 24 and differentiated tariffs issue 9, 10 domestic energy prices, raised 22 economic costs of pollution, report on 13, 127 economic policies 21–7 economic policies, and market-based instruments 22–4, 129 economic policies, supportive 25 energy intensity figures 15–16, 19 energy subsidies, reduction in 22, 128–9 energy use per unit of GDP, bulletin system 15 environmental accidents, responsibility for 127 environmental impact assessment (EIA) laws, penalties 7–8, 14, 15 environmental performance ratings and disclosure 29–31 environmental performance ratings and disclosure (PRD) 29–30 environmental protection bureaus (EPB), self-construction fees 10 export tax 26, 27, 42, 130 financial burden of local governments, alleviating 20–21 financial institutions, cooperation with, and corporate environmental performance 31–3 and fiscal system 18, 127 and fossil fuel subsidies 21–2 government revenue and expenditure shares 17 import tariffs 26 industrial policies 26–7 and investment in energy industry 16 job performance of local officials, incorporating energy conservation and environmental performance into 19–20, 127–8 local government incentives 9–18 169 local government officials, perceived lack of accountability 36–7, 127–8 non-cooperation, subjective and objective factors 18–21 and payment of transfer 16–18 pollution charge fees, provincial measures for collecting 10, 23–4 and private sector 28–33 promotion of local officials and economic expansion 10, 18, 127 regional environmental protection centers, establishment of 13, 127 regional inspection centers, establishment of 13 regional permit restrictions, and construction projects 13–14, 15 and resource taxation 20–21, 128, 129 and SEPA model environmental city program 12, 34, 127 and small cars issue 9, 11–12 and tax-sharing system 18–19, 20–21, 128 and tax-sharing system, and differentiated tariffs 19 Ten Energy-saving Projects 16, 25 Top 1000 Enterprises Energy Conservation Action Program 19–20, 42–3, 63 and transition to low-carbon economy 126–31 EU and border carbon adjustments (BCA) 104–6, 107 carbon emissions 39, 138 carbon equalization system proposal 106 clean development mechanism (CDM), participation in 62 and Copenhagen Accord 78–9 Emissions Trading Scheme 92, 108–10 fuel economy standards for vehicles 50 green government procurement 28 greenhouse gas emissions 88, 92, 108–10, 141 mixed carbon and energy tax (CEC), www.ebook777.com M2699 - ZHANG 9781848445468 PRINT.indd 169 25/08/2011 13:21 free ebooks ==> www.ebook777.com 170 Energy and environmental policy in China exemptions for energy-intensive industries 112–13 renewable energy use 53–4 vehicle emission standards 51, 52 and WTO automobile part tariffs 49–50 export manufacturing, and emissions 27 export tax 26, 27, 42, 130 see also taxation fossil fuel subsidies 21–2 units, encouraging construction of cleaner, more efficient 44–6 see also coal France, national carbon tax 106, 107 Frankel, J 102 Friedman, L 138 Genasci, M 124 Germany greenhouse gas emissions 63 solar power technology 135 wind power installations 56 Goulder, L 111–12 government decentralization see environmental protection and government decentralization Government Procurement Law 28–9 Graham-Harrison, E 75, 93 green credit system, People’s Bank of China 32 green government procurement 28–9 Green Watch program 30–31 greenhouse gas emissions in industrialized countries, proposals for future 95 per capita, and roadmap to 2050 84 see also emissions Harrison, A 85 Haverkamp, J 108 He, Y 22 Hille, K 38 Ho, L 28 Ho, M 33 Hollinger, P 106 Hong, J 33 M2699 - ZHANG 9781848445468 PRINT.indd 170 Hong Kong Exchanges and Clearing, H-shares 33 Hou, J 54 Houser, T 106, 119 Hu, A 90, 91 Huang, Q 46 hydropower 54, 62–3 MEP suspension of approval for 15 and transition to low-carbon economy 132 see also renewable energy sources import tariffs 26 see also tariffs India carbon tariffs and energy-intensive manufacturing 120 clean development mechanism (CDM), participation in 62 CO2 emissions, projected 95 coal dependency 83 energy-intensive industrial production 83–4 exports to US, taxing carbon footprint 116 greenhouse gas emissions, per capita 84 population growth 84 unit energy consumption 84 vehicle emission standards 51, 52 wind power installations 55, 56 Indonesia domestic energy prices, raised 22 eco-labeling 28 Program for Pollution Control, Evaluation and Rating (PROPER) 30 vehicle emission standards 52 Intergovernmental Panel on Climate Change (IPCC), greenhouse gas emissions 75, 90 international climate negotiations, China accused of delaying 94 International Energy Agency (IEA) and carbon emissions 39, 138 World Energy Outlook 2009 72–4 International Finance Corporation, green credit policy 32 Ismer, R 103, 115 25/08/2011 13:21 free ebooks ==> www.ebook777.com Index Japan eco-labeling 28 fuel economy standards for vehicles 50 green government procurement 28 SC and USC units 45 Jin, Y 30, 31 Kang, M 29 Korea capital market investment 32–3 eco-labeling 28 Kyoto Protocol 61, 63, 69–70, 85, 87–8, 90, 92, 95, 107, 117 clean development mechanism (CDM) see clean development mechanism (CDM) Lamont, J 38 Levi, M 70 Liu, J 43 Liu, S 137 Liu, X 51 local government see environmental protection and government decentralization Lynas, M 94 Ma, X 10 McBroom, M 124 McKibbin, W 82 Malaysia domestic energy prices, raised 22 vehicle emission standards 52 Mason, J 102 Mattoo, A 114, 116 Mavroidis, P 103 Miliband, E 94 Ministry of Environmental Protection (MEP) (formerly SEPA) background blacklists see blacklists environmental protection storms 14–15 environmental records audit 32 model environmental city program 12, 34, 127 People’s Bank of China and creditevaluation system 31–2 171 regional environmental protection centers, establishment of 13 regional permit restrictions, and construction projects 13–14, 15 SO2 emissions-cutting responsibility agreements 25 vehicle emission standards 51 model environmental city program 12, 34, 127 Montreal Protocol on Substances that Deplete the Ozone Layer 92, 108 National Development and Reform Commission (NDRC) differentiated tariffs issue 9, 19 and energy intensity targets 19 energy-saving responsibility agreements 42 enterprise awards for every ton of coal equivalent saved (tCE) 25 nuclear power development plan 60–61 and small cars issue 12 wind power, feed-in tariffs for 59 National Energy Administration, nuclear power development plan 60–61 Neuhoff, K 103, 115 Nielsen, C 33 NOx emissions and export manufacturing 27 levels of pollutant charges 23 see also emissions nuclear power development plans 60–61 nuclear accidents 139–40 pressure water reactor type 59–61 and transition to low-carbon economy 139–40 uranium resources 61, 139 waste processing and storing 139 OECD carbon emissions 40 green government procurement 28 Ortolano, L 10 Parry, I 124 particulate matter, and export manufacturing 27 www.ebook777.com M2699 - ZHANG 9781848445468 PRINT.indd 171 25/08/2011 13:21 free ebooks ==> www.ebook777.com 172 Energy and environmental policy in China Peng, J 137 People’s Bank of China and credit-evaluation system 31–2 green credit system 32 Pernick, R 134 Philippines, vehicle emission standards 52 Po, J 134 pollution air see air pollution charge fees, provincial measures for collecting 10, 23–4 cutting, and energy efficiency, increasing 40–53, 62–3 limits, fines for exceeding 8, 129 see also emissions power generation technology, supercritical (SC) and ultrasupercritical (USC) 44, 45–6, 137 power plant, first commerciallyoperated 45 Price, L 42 private sector, and environmental protection and government decentralization 28–33 Qiu, J 70 Rawski, T 75 regional environmental protection centers, establishment of 13 regional permit restrictions, and construction projects 13–14, 15 Reinaud, J 124 Renewable Energy Law 55 renewable energy sources and roadmap to 2050 96 and transition to low-carbon economy 132–5 see also biomass power; hydropower; solar power; wind power resource taxation 20–21, 128, 129 see also taxation Richels, R 95 roadmap to 2050 see climate commitments and roadmap to 2050 Samuelsohn, D 118 Sauer, A 50 M2699 - ZHANG 9781848445468 PRINT.indd 172 Shanghai Stock Exchange, and environmental performance disclosure 33 Singapore, vehicle emission standards 52 SO2 emissions coal-fired units to be equipped with flue gas desulfurization (FGD) 25 emissions-cutting responsibility agreements 2, 3, 25, 46, 126 and environmental taxes 129 and export manufacturing 27 levels of pollutant charges 23–4, 46–7 trading 24, 129 in Two Control Zones 23, 46–7, 129 see also emissions solar power ‘Golden Sun’ program 54, 133–5 subsidies 134–5 see also renewable energy sources Spain, wind power installations 56 Stanway, D 19, 119 State Environmental Protection Agency (SEPA) see Ministry of Environmental Protection (MEP) (formerly SEPA) steel industry green credit policy 32 suspension of EIA approval of new construction project 15 Stern, N 98 Streets, D 27 subsidies fossil fuel 21–2 reduction in 22, 128–9 solar power 134–5 vehicle trade-in 53 Sun, X 54 tariffs bidding-based and feed-in 56–9 cap-and-trade scheme, and US proposed carbon 106–7, 114–16, 117, 118, 119, 141 differentiated tariffs issue, and government decentralization 9, 10 import 26 Indian carbon, and energy-intensive manufacturing 120 25/08/2011 13:21 free ebooks ==> www.ebook777.com Index WTO automobile part, dispute on 49–50 see also taxation Tavoni, M 70 taxation export tax 26, 27, 42, 130 resource taxation 20–21, 128, 129 tax-sharing system 18–19, 20–21, 128 tax-sharing system, and differentiated tariffs 19 vehicle excise tax and energy-efficient vehicles 48–9 see also tariffs Ten Energy-saving Projects 16, 25 Thailand eco-labeling 28 GATT cigarette dispute 110–111 vehicle emission standards 52 Tietenberg, T 30 Top 1000 Enterprises Energy Conservation Action Program 19–20, 42–3, 63 transport see vehicles UK, greenhouse gas emissions 63 UN, Bali Action Plan (BPA) 103, 110, 118 United Nations Development Programme, and clean development mechanism (CDM) 62 United Nations Framework Convention on Climate Change (UNFCCC) clean development mechanism (CDM) see clean development mechanism (CDM) Copenhagen Accord 2, 69, 70, 78–9, 93–4, 140, 141 and developing countries 103–4, 117–19 Kyoto Protocol 61, 63, 69–70, 85, 87–8, 90, 92, 95, 107, 117 US carbon emissions 39, 40, 87, 117 coal dependency 83 Environmental Protection Agency 92, 108–10 fuel economy standards for vehicles 50 173 greenhouse gas emissions 81–2, 87–8, 141, 143 Kyoto withdrawal 87–9, 105 renewable energy use 53–4 SO2 Allowance Trading Program 92, 108–10 Superfund Tax 115 Waxman–Markey bill (Clean Energy and Security Act) 89, 91, 93, 100–101, 106–7, 112, 113–14, 118, 123–4 wind power installations 56, 132 and WTO Agreement on Government Procurement 29 and WTO automobile part tariffs 49–50 US proposed carbon tariffs 103–24 and Bali Action Plan (BPA) 118 best available technology (BAT) as the reference technology level 115–16 border carbon adjustment (BCA) measures in US climate legislations, proposed 104–7, 114–16 and cap-and-trade scheme 106–7, 114–16, 117, 118, 119, 141 and Clean Energy Jobs and American Power Act 114–15 and comparability of climate actions 104, 107–8, 110, 117–20 developing countries, need for consideration of legitimate demands of 123–4, 143 and discrimination of like products among trading nations 113 emissions allowance requirements, cap-and-trade regime and border adjustment measures 104 emissions permits and grandfathering 112 and energy-intensive manufacturing 120 and global solution to threat of climate change, need for 116–17 and import emissions allowance requirement 107–8, 113 www.ebook777.com M2699 - ZHANG 9781848445468 PRINT.indd 173 25/08/2011 13:21 free ebooks ==> www.ebook777.com 174 Energy and environmental policy in China and import emissions allowance requirement, grace period 108–10, 114 and International Reserve Allowance Program 106, 107, 114 and Lieberman–Warner Climate Security Act 106, 107–8, 113–14, 118 and Shrimp-Turtle dispute 108, 109–10, 119 suggested Chinese response to 116–20 tax rates for imported products, and US production of like products 115 and Thai cigarette dispute 110–111 trade provisions, and free emission allowances to sectors vulnerable to global competition 111–13 and trade provisions, inclusion of 107–8, 110–113, 117 and voluntary export tariffs, Chinese 119–20 and Waxman–Markey bill (Clean Energy and Security Act) 89, 91, 93, 100–101, 106–7, 112, 113–14, 118, 123–4 and WTO core principles 105, 106, 109, 113 WTO scrutiny of Congressional climate bills 107–16 vehicles emission standard, and trade-in subsidies 53 emission standards 51–3, 130–131 excise tax and energy-efficient vehicles 48–9 fuel economy standards for, and comparisons with other countries 50 fuel economy standards, comparisons with other countries 50 fuel economy standards for passenger fleet 48–9 public transport system improvements 51 M2699 - ZHANG 9781848445468 PRINT.indd 174 small cars issue 9, 11–12 WTO automobile part tariffs, dispute on 49–50 Vietnam, vehicle emission standards 52 Voituriez, T 120 Wan, X 22 Wang, J 66 Wang, P 44 Wang, Q 47, 66 Wang, X 29, 59, 120 Wang, Y 28 waste water facilities, as blacklisted polluters 29 Water Pollution Prevention and Control Act Watts, J 70, 94 Werksman, J 119 wind power development 54–9, 62–3 development, bidding-based tariffs and feed-in tariffs 56–9 development and hook-up to power grid 132–3 plant, and clean development mechanism (CDM) 59, 132 projects, local content requirement 57, 58 reduced value added tax for 55 and transition to low-carbon economy 132–3 Wind Power Concession Program 56–7 see also renewable energy sources World Bank, and clean development mechanism (CDM) 61–2 World Trade Organization (WTO) Agreement on Government Procurement 29 core principles, and US proposed carbon tariffs 105, 106, 109, 113, 115 and discrimination of like products among trading nations 113 emissions trading and trade provisions, possible alternatives 110–111 GATT Thai cigarette dispute 110–111 25/08/2011 13:21 free ebooks ==> www.ebook777.com Index and solar power subsidies 135 US proposed cap-and-trade scheme 106–7, 114–16, 117, 118 US and Shrimp-Turtle dispute 108, 109–10, 119 Wyckoff, A 85 Xu, C 28 Yan, X 66 Yang, L 61 Yang, N 44 Yang, Y 134 Ye, Q 44 175 You, S 47 Yu, Z 23, 25, 44 Zhang, K 137 Zhang, Z.X 7, 8, 9, 12, 14, 16, 17, 18, 19, 20, 22, 25, 26, 32, 41, 43, 46, 47, 53, 54, 57, 58, 60, 62, 63, 67, 69, 70, 72, 82, 84, 88, 90, 92, 96, 97, 98, 99, 101, 103, 108, 109, 110, 112, 113, 115, 116, 117, 119, 121, 133, 138, 142 Zheng, X 47 Zhu, J 19 Zhu, X 25, 45 www.ebook777.com M2699 - ZHANG 9781848445468 PRINT.indd 175 25/08/2011 13:21 free ebooks ==> www.ebook777.com M2699 - ZHANG 9781848445468 PRINT.indd 176 25/08/2011 13:21 ... economic reforms in China over the past three decades has led to insufficient investment in energy saving, with its share in the total investment in the energy industry in China declining from about... PRINT.indd 24/08/2011 10:49 free ebooks ==> www.ebook777.com 10 Table 2.2 Energy and environmental policy in China Differentiated tariffs for eight energy- guzzling industries in China Eight energy- guzzling... emissions growth in China, 1980–2007 (MtC) Preliminary and final values for total primary energy consumption in China, 1990–2008 Preliminary and final values for coal consumption in China, 1990–2008