Daniel Schrag and Henry Lee discuss the policies China could enact in the near-term to ease its transition to a low-carbon economy, the subject of their book Foundations for a Low-Carbon Energy System in China (Cambridge University Press, 2021). 

Meeting climate goals requires investing in policy researchers.

How can China make good on its pledge to reach carbon neutrality by 2060? In Foundations for a Low-Carbon Energy System in China, a team of experts from China and the United States explains how China's near-term climate and energy policies can affect long-term decarbonization pathways beyond 2030, building the foundations for a smoother and less costly national energy transformation.

In this report, we propose a market reform pathway for Yunnan that is both feasible and applicable to address some of these challenges immediately, while aiming for a standard design based on well-documented international experience. Our proposal includes at its heart a pay-for-performance monthly capacity auction that can help cover revenue deficiencies in the energy market. Building on international experience with capacity markets, this approach provides incentives for availability when generation is needed most and is compatible with the adoption of a single energy market for all electricity resources. Out-of-market payments to cover stranded costs of certain firms can thus be minimized. Finally, engaging consumers in both these energy and capacity markets can create high-powered incentives to shift consumption to low-cost months and hours, benefitting the entire province.

This discussion paper (available in English and Chinese) describes the evolution of decentralization over the reform period that began in China in 1978, different theories of institutional change in China, and how the empirical and theoretical literatures help scholars and policymakers understand the development of institutions for governing GHG-emitting activities.

Michael Davidson explores Chinese provinces’ roles in formulating and implementing climate-change policy, in the context of a broader understanding of administrative and political relationships between provincial and central governments.