China’s Energy Situation and Its Implications in the New Millennium

Many are interested in China’s energy situation, however, numerous energy related issues in China still remain unanswered. For example, what are the potential forces driving energy demand and supply? Previous reviews focused only on fossil fuel based energy and ignored other important elements including renewable and ‘clean’ energy sources. The work presented here is intended to fill this gap by bringing the research on fossil-based and renewable energy economic studies together and identifying the potential drivers behind both energy demand and supply to provide a complete picture of China’s energy situation in the new millennium. This will be of interest to anyone concerned with the development of China’s economy in general, and in particular with its energy economy.China China; Energy; Fossil fuels; Renewable Energy

Comparative analysis of the existing and proposed ETS

Emissions trading schemes (ETS) have been operational to control greenhouse gas emissions in European Union since 2005. Under the EU ETS, the governments of the Member States agree on national emission caps, allocate allowances to industrial operators, track and validate the actual emissions and retire allowances at the end of each year. ETS have been proposed to be introduced in New Zealand, Australia, Japan, US, Canada, Korea, India and two Chinese provinces in the near future. The main idea of the ETS is to create the market for pollution which will provide economic agents with incentives to reduce their emissions ( Stavins, et al., 2003). The design of ETS plays an important role in reducing greenhouse gas emissions and promoting environmental and economic sustainability. There are several designs of ETS including cap-and-trade, baseline-and-credit and hybrid, however, cap-and-trade scheme is the most popular among the proposed ETS. The purpose of this paper is to perform a comprehensive review of the existing and the proposed ETS focusing on design issues. Findings of this research will be useful for countries with existing and proposed ETS and for countries intending to adopt ETS in the future.Emission Trading Scheme (ETS), Sustainability, Cap-and-trade, Baseline-and-credit, Hybrid

Essays in Financial Development and Income Inequality

This dissertation consists of three essays of original research. Chapter 1 is a survey of the literature on the theoretical and empirical interactions among financial development, economic growth, and income inequality. Chapter 2 describes empirical research on the relationship between financial development and income inequality based on Generalized Method of Moments (GMM) method using a Chinese provincial dataset between 1998 and 2014. The empirical findings support the notion that well-developed financial markets increase income inequality in China. After adding a year dummy for 2001 to examine the impact of China’s entry into the World Trade Organization, which caused the financial system to deepen due to a surge in banking competition in China, positive impacts of financial development on income inequality increased. Chapter 3 empirically investigates the association between financial development and income inequality based on spatial data analysis. As is well known, provincial Gini coefficients are not available for a few provinces and for certain years. To deal with this missing data, a GMM regression was estimated by using available data to obtain predicted values for the missing observations. An exploratory spatial analysis of 29 administrative units in China showed spatial dependence of provincial income inequalities. Finally, a spatial panel model was estimated. The empirical results reveal that financial development decreases income inequality in China. Furthermore, the estimation exhibited significant spatial autocorrelation estimates with spatial dependence appearing in the disturbance term, indicating significant non-measurable reform or policy impacts. Chapter 4 reconciles the difference between Chapter 2 and Chapter 3. Empirical findings proposed in Chapter 2 based on the system GMM estimator suggest a positive relationship between financial development and income inequality, while findings suggested in Chapter 3 based on a spatial panel model present the negative impact of financial development on income inequality

Growth, inequality, and poverty in rural China: the role of public investments

In the past two decades, China has achieved world renown for reducing rural poverty. However, it is becoming harder to reduce poverty and inequality further in China, even though its economy continues to grow. This report compares the impact specific rural public investments can have on promoting growth and reducing poverty and inequality. Returns to these investments are calculated for the nation as a whole and for three economic zones in the west, central, and coastal regions of the country. Government expenditures that have the highest impact on poverty and growth include education, agricultural research and development, and rural infrastructure (roads, electricity, and telecommunications). Notably, spending on irrigation and anti-poverty loans had minimal impact. The report discusses the implications of these findings for setting future priorities for government investment. It also suggests avenues for future research and calls for a better understanding of how to improve the effectiveness of public resources. This report will be of interest to professionals involved in rural poverty reduction, rural development, agricultural growth, food security, and public investment policy.Poverty alleviation China., Rural conditions China., Public investments., Agriculture and state., Rural poor Government policy., Econometric models., Equality., Government spending policy.,

Intergovernmental fiscal relations in China

The choice of the"right"fiscal relationship between central, provincial, and local governments depends on how a government weighs the benefits of decentralized economic development policies against the costs of having less effective central fiscal management. Three strong forces justify more fiscal centralization in China's highly decentralized fiscal system. First, Bouts of inflation and recurrent fiscal deficits can be seen as calling for more central control over the budget. Second, Reform of an economic system relies heavily on the use of tax policy as an allocative instrument to influence economic decisions. Local control of the implementation of the tax system can and probably has compromised some objectives of the central government's tax policy. Gaining tighter control over the revenue system will probably require reducing if not eliminating local government discretion in providing special tax concessions. Third, if the center wants to move ahead with price reform and to encourage enterprise reform, it needs a more centrally controlled revenue sharing or assignment system that reduces the dislocating effects of such reforms. Bahl and Wallich conclude that a reformed system of intergovernmental finance must meet the center's needs for stabilization and the provinces'needs for revenue and equalized spending capacity, supplemented by an improved system of financing local capital expenditures through borrowing, a system of benefit charges and improved planning.Public Sector Economics&Finance,National Governance,Banks&Banking Reform,Municipal Financial Management,Urban Economics

Análise da percepção de risco e do comportamento pró ambiental no nível local : políticas ambientais e cientistas locais sobre poluição atmosférica em Pequim/China: 2007-2018

Orientador: Leila da Costa FerreiraTese (doutorado) - Universidade Estadual de Campinas, Instituto de Filosofia e Ciências HumanasResumo: Nas últimas duas décadas do século XX, a questão ambiental assumiu o status de um problema global. Os efeitos colaterais da produção industrial são caracterizados como resultado de uma profunda crise institucional da sociedade industrial como um todo. Por outro lado, a capacidade de um país de suportar impactos relacionados às mudanças climáticas depende sistematicamente do nível de renda do mesmo país. Nesse cenário, o dilema de priorizar as preocupações ambientais ou o desenvolvimento econômico é o maior desafio dos países emergentes. Com a urbanização, o governo local desempenha um papel maior na resposta aos riscos das mudanças climáticas. Um dos riscos que mais afetam megacidades como Pequim é a poluição do ar. Tomando como exemplo a metrópole de Pequim, esta pesquisa analisará seus problemas de poluição do ar e as políticas adotadas. Mais importante, concentrando-se nos cientistas locais, com a identidade social de "especialistas" em Pequim, eles serão analisados e divididos em diferentes grupos em termos de reconhecimento do risco de poluição do ar e de vontade de reagir a ele em suas cotidiano e em suas pesquisasAbstract: From the last two decades of the twentieth century, the environmental issue assumed the status of a global problem. The side effects of industrial production are characterized as the result of a profound institutional crisis of industrial society as a whole. On the other hand, a country¿s ability to withstand impacts related to climate change is systematically dependent on the level of income of the same country. In this scenario, the dilemma of prioritizing environmental concerns or economic development is the biggest challenge of emerging countries. With urbanization, local government plays a greater role in responding to the risks of climate change. One of the risks that most affect megacities like Beijing is air pollution. Taking as example the metropolis of Beijing, this research will analyze its air pollution issues and the policies adopted. Most importantly, focusing on the local scientists, with the social identity of "experts" in Beijing, they will be analyzed and divided into different groups in terms of their recognition of the risk of air pollution and of their willingness to react to it in their daily lives and in their researchesDoutoradoCiências SociaisDoutora em Ciências Sociai

Can Green Bonds Help Air Pollution Mitigation in China? Potential and Challenges

This paper aims to examine the potential of green bond implementation in China suited with Chinese air pollution situation. It researched the green bond origination, history, definination and categories and so on. The paper applied literature review, case study and internview methods to purpue a conclusion. Since the financial crisis, many countries are exploring how to re-engineer the financial system integrating sustainability, social responsibility and environmental factors. Green bonds are one of the forms of investment with an environmental focus. China is a country with both large amounts of financial capital and severe environmental issues. Pursuing economic development in a sustainable manner is a crucial topic for emerging market economies, such as China. One of the most vicious environmental issues that cause direct damage to human health is the air pollution problem, which has worsened in recent years. This paper focuses on the outdoor air pollution in China, which has significant adverse impact on residents’ health and the country’s overall economic development. The main source of outdoor air pollution in China is industrial coal burning. And to reduce the industrial coal burning, there are three main solutions: increase renewable energy use, improve energy efficiency and enhance clean production. Cases from the World Bank and IFC on green bond issuance and their proceed use show evidential facts that green bonds could help air pollution mitigation by providing financial resources for energy efficiency, for the energy conservation sector and for leveraging more capital flow into the environmental area. Green bond implementation in China could potentially contribute two positives: on the one hand, green bonds could help solve the financial resource shortage for mitigating the air pollution problem; on the other hand, they can add to the environmental finance products’ diversities. This paper explores the potential and the challenges of green bond issuance in China based on a key question: can green bonds help air pollution mitigation? By studying the green bond product (concept, feature, proceed use) and bond market, and analyzing the financial need for air pollution mitigation in China, we can conclude a positive answer to the question proposed

China: New Engine of World Growth

Twenty-five years of reform have transformed China from a centrally planned and closed system to a predominantly market-driven and open economy. As a consequence, China is emerging as the new powerhouse for the world economy. China: new engine for world growth discusses the impact and significance of this transformation. It points out risks to the growth process and unfinished tasks of reform. It presents conclusions from recent research on growth, trade and investment, the financial sector, income and regional disparities, industrial location and private sector development. Ross Garnaut is a Professor of Economics in the Research School of Pacific and Asian Studies, and Chairman of the China Economy and Business Program at The Australian National University. He was Australia’s Ambassador to China in the 1980s. Ligang Song is a Fellow in the Asia Pacific School of Economics and Government, and Director of the China Economy and Business Program at The Australian National University

Secure and Sustainable Energy System

This special issue aims to contribute to the climate actions which called for the need to address Greenhouse Gas (GHG) emissions, keeping global warming to well below 2°C through various means, including accelerating renewables, clean fuels, and clean technologies into the entire energy system. As long as fossil fuels (coal, gas and oil) are still used in the foreseeable future, it is vital to ensure that these fossil fuels are used cleanly through abated technologies. Financing the clean and energy transition technologies is vital to ensure the smooth transition towards net zero emission by 2050 or beyond. The lack of long‐term financing, the low rate of return, the existence of various risks, and the lack of capacity of market players are major challenges to developing sustainable energy systems.This special collected 17 high-quality empirical studies that assess the challenges for developing secure and sustainable energy systems and provide practical policy recommendations. The editors of this special issue wish to thank the Economic Research Institute for ASEAN and East Asia (ERIA) for funding several papers that were published in this special issue