Regional Cooperation on Carbon Markets in East Asia

Asian Development Review, vol. 35, no. 2, pp. 153–179, 2018

27 Pages Posted: 7 Oct 2018

See all articles by Jiajia Li

Jiajia Li

Sichuan Agricultural University

Junjie Zhang

Duke Kunshan University; Duke University

Date Written: September 1, 2018

Abstract

The People's Republic of China, Japan, and the Republic of Korea have launched individual emission trading schemes to control greenhouse gas emissions cost-effectively. This paper reviews key carbon market design elements in the three countries in terms of emission allowances, covered sectors, allowance allocations, monitoring, reporting and verification, compliance and penalties, and offset markets. We assess the performances of the emission trading schemes among the three countries based on secondary-market allowance transactions. Considering heterogeneous climate policy designs in the region, we explore various approaches for the linkage of East Asian carbon markets. Cooperation on carbon markets is instrumental for regional and global climate governance. It could not only help achieve cost-effective emission reductions in the region, but also signal the commitment of the three countries to climate change mitigation.

Keywords: carbon markets, climate change, East Asia, linkage

JEL Classification: Q54, Q58

Suggested Citation

Li, Jiajia and Zhang, Junjie, Regional Cooperation on Carbon Markets in East Asia (September 1, 2018). Asian Development Review, vol. 35, no. 2, pp. 153–179, 2018, Available at SSRN: https://ssrn.com/abstract=3249143

Jiajia Li

Sichuan Agricultural University ( email )

46 Xinkang Rd, Yucheng Qu
Sichuan Sheng
China

Junjie Zhang (Contact Author)

Duke Kunshan University ( email )

No. 8 Duke Avenue
Kunshan, 215316
China
+86 512 36657068 (Phone)

HOME PAGE: http://junjiezhang.org

Duke University ( email )

No. 8 Duke Avenue
Kunshan, 215316
China
+86 512 36657068 (Phone)

HOME PAGE: http://junjiezhang.org

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
15
Abstract Views
234
PlumX Metrics