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Study on the Effects of Pollution Reduction about Emissions Trading

Author: HaoYaZuo
Tutor: HuJianFeng
School: Zhejiang University of Technology
Course: Industrial Economics
Keywords: emissions trading system environmental charging policy emissions ofpollutants policy effects
CLC: X196
Type: Master's thesis
Year: 2014
Downloads: 5
Quote: 0
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Abstract


Emission trading system is a means of energy-saving and emission-reducingby using market mechanism. There has been10years since Zhejiang began a pilot.At present, the vast majority of China’s provinces (municipalities and autonomousregions) have implemented this system. So, how will this system exactly affectemission reduction including COD, SO2after implementing? And how will thesystem impact a number of other pollutants that emissions trading have not beenimplemented? Therefore, it is necessary for us to examine these issues in order toprovide a sound scientific basis for this system.This article aims to take advantage of China’s provincial panel data to analyzethe implementation of emissions trading for pollutants emission reduction. In acomprehensive review of papers and sorting relevant research, this papertheoretically analyze the microscopic mechanism of emissions trading and theimpact mechanism of traditional pollution control policy. And through acomparative analysis, this paper summarizes the factors of pollution emissions.According to the needs of the research, the author introduces interaction term ofemissions trading and emissions trading object to the models of effects ofemissions trading emission reduction. Then, this paper empirically analyzes theimpact of emissions trading on China’s environmental quality and economicdevelopment. Finally, the empirical results presented policy recommendations toimprove emissions trading system.Empirical data show that since the implementation of the emissions tradingpolicy, China’s emissions of pollutants including COD, SO2and so on have beensignificantly reduced, while emission levels of some other pollutant have notdecreased, but increased. It shows that emissions trading systems and thecharging policy of pollution play a certain role on pollution emissions. However,the influence of the two policies for different pollutants is different. Pollutantemissions trading system is only involved in the transaction which will have apositive effect, but has a negative effect on pollutants which is not involved inthe transaction. While the charging policy plays a more significant role onwastewater reduction than the impact of the exhaust gas. Therefore, whenpromoting energy conservation practice in China, we not just rely on a singleenvironmental policy instruments, but need a combination of a variety of effective policy tools to achieve the desired results expected. Only from the poin tof view of emissions trading system, we should put more pollutants into thecategory of emission trading.

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CLC: > Environmental science, safety science > The basic theory for the Environment and Science > Environmental Economics
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