Template-type: ReDIF-Paper 1.0
Author-Name: Chia-Lin Chang
Author-Workplace-Name:
 Department of Applied Economics Department of Finance National Chung Hsing University, Taiwan.
Author-Name:
 Michael McAleer
Author-Workplace-Name:
 Department of Quantitative Finance National Tsing Hua University, Taiwan and Econometric Institute Erasmus School of 
	Economics Erasmus University Rotterdam, The Netherlands and Department of Quantitative Economics Complutense University of 
	Madrid, Spain And Institute of Advanced Sciences Yokohama National University, Japan.
Author-Name: Te-Ke Mai
Author-Workplace-Name: Department of Economics National Tsing Hua University, Taiwan.

Title: Establishing National Carbon Emission Prices for China
Abstract: The purpose of the paper is to establish national carbon emissions prices for the People’s Republic of China, which is one of the world’s largest 
	producers of carbon emissions. Several measures have been undertaken to address climate change in China, including the establishment of a carbon 
	trading system. Since 2013, eight regional carbon emissions markets have been established, namely Beijing, Shanghai, Guangdong, Shenzhen, Tianjin, 
	Chongqing, Hubei and Fujian. The Central Government announced a national carbon emissions market, with power generation as the first industry to be 
	considered. However, as carbon emissions prices in the eight regional markets are very different, for a variety of administrative reasons, it is 
	essential to create a procedure for establishing a national carbon emissions price. The regional markets are pioneers, and their experience will play 
	important roles in establishing a national carbon emissions market, with national prices based on regional prices, turnovers and volumes. The paper 
	considers two sources of regional data for China’s carbon allowances, which are based on primary and secondary data sources, and compares their 
	relative strengths and weaknesses. The paper establishes national carbon emissions prices based on the primary and secondary regional prices, for the 
	first time, and compares both national prices and regional prices against each other. The carbon emission prices in Hubei, Guangdong, Shenzhen and 
	Tianjin are highly correlated with the national prices based on the primary and secondary sources. Establishing national carbon emissions prices should 
	be very helpful for the national carbon emissions market that is under construction in China, as well as for other regions and countries worldwide.
Classification-JEL: C22, C58, G12, Q35, Q48.
Keywords: Pricing Chinese carbon emissions, National pricing policy, Energy, Volatility, Energy finance, Provincial decisions.
Length: 59 pages 
Creation-Date: 2018-03
Number: 2018-10
X-File-Ref: http://america.sim.ucm.es/repec/ucm/ref/doicae1810.txt
File-URL: https://eprints.ucm.es/id/eprint/47098/1/1810.pdf
File-Format: Application/pdf
Handle: RePEc:ucm:doicae:1810