An Analysis of Chinese Policy Instruments for Climate Change Mitigation

Design/methodology/approach - First, the paper reviews Chinese energy consumption per unit of GDP (EC/GDP) in order to determine the overall effects of the combined policy instruments. Second, the different policy instruments are compared in terms of their effects. Third, the actual trends of EC/GDP in two provinces and the instruments adopted by them are analysed on the provincial level. Findings - The decline in EC/GDP can indirectly reflect the Chinese contribution to mitigation of CO2 emissions since fossil fuels dominate Chinese energy consumption. The national EC/GDP values have shown a declining trend from 2005 to date, indicating that the policy instruments are very important to mitigate climate change as regards reducing EC/GDP. The technological improvement regulations have made the greatest contribution to date to reduce EC/GDP values. The experiences from the Beijing and Shandong province indicate that their final targets in 2010 will be most likely achieved because the different provinces are not only following the national policy instruments but have also developed quite a few new instruments to assist in reaching the these reductions. Research limitations/implications - There are three limitations regarding Chinese policy instruments analysis. First, the paper does not go far to determine the other factors which can affect EC/GDP apart from policy instruments. Second, some data were lacking and there may be inaccuracies in the existing data that could affect the analysis results. Third, EC/GDP cannot reflect the Chinese contribution to mitigation of CO2 emissions if the composition of Chinese energy consumption changes significantly. Originality/value - The paper addresses the importance of various policy instruments in reducing EC/GDP. The results can be referenced by Chinese policy makers on both the national and provincial level.QC 2011061