Policy Diffusion of the Emission Trading Scheme in China:Progress and Prospects

Chinese national emissions trading scheme(ETS)of greenhouse gas(GHG)was scheduled to start simulation trading in the power sector in 2020.Now it is good timing to review its progress and prospect.This study first examines policy diffusion in relation ETSs in China and particularly those for CO2 emissions,including the causes,determinants,process,and impacts.It argues in a centralized political system with highly and widely differentiated local circumstances,policy diffusion is progressed through a more complicated process,presented as a three-tier process in the paper,illustrating how international arrangement,national jurisdiction,and local administration interact and influence policy-making in a follower’s jurisdiction.China,which is now the biggest GHG emitter,has been preparing to establish a national ETS since 2017.So far,eight sub-national governments have introduced ETS pilot programs to feedback their experiences and to determine best practice for the national scheme.These eight pilots,especially the relatively successful ones,are found to be motivated by a competitive relationship that aims to stabilize its carbon market,which may eventually contribute to the progress of policy diffusion of the ETS in China.

China and the United States’ Critical Roles in Tackling Climate Change and Shaping the International Regimes

This paper argues that major powers can play critical roles in a complicated regime system,as evidenced by China and the U.S.which have had pivotal influence in the construction of the post-2020 climate regime.China and the U.S.have participated in multilateral consultations beyond the scope of the United Nations Framework Convention on Climate Change(UNFCCC)while making use of many political platforms,such as Asia-Pacific Economic Cooperation(APEC),G20,and informal meetings and dialogues to bridge the gap among various approaches to mitigating climate impacts.China-U.S.bilateral cooperation has incorporated energy and climate issues into the strategic and economic dialogue(S&ED)and launched other schemes,such as EcoPartnerships and wide-ranging dialogues and initiatives on clean energy/clean vehicles.These schemes support the reconciliation of ideas related to domestic abatement policies in the areas of energy,climate change,and environmental protection.Since the Trump administration came to power in 2017,the bilateral cooperation at national level has been retreated significantly and therefore slowdown the UN’s institutional response to climate change.At the stage,the U.S.may not be able to play a critical role in shaping the regime,yet China is regarded to be the most important player in negotiations under the Paris Agreement.

Impact of the US Economic Crisis on East Asian Economies:Production Networks and Triangular Trade through Chinese Mainland

This paper investigates the impact of the 2008 economic crisis on industries in East Asia. It attempts to identify the transmission mechanism and the magnitude of the impact of the crisis on industries in East Asia using the updated Asian international input-output table for 2008. The analyses reveal that the crisis significantly affected industrial output of the nine East Asian economies included in the present study. The economies that are deeply involved in production networks were affected most seriously. Our analyses also show that the impact was transmitted to East Asian industries through triangular trade, in which Chinese mainland imports parts and components from neighboring East Asian economies and then exports final products to the US and EU markets. Although such intricate production networks have improved the competitiveness of East Asian economies, they have also increased vulnerability to external shocks.

How Does Economic Policy Uncertainty Impact a Country's Position in Global Value Chains?

Economic globalization in the 21st century has been characterized by the rise and spread of global value chains(GVCs).It faces significant challenges due to increasing domestic and international policy uncertainty in the context of emerging mega risks like geopolitical tensions and climate change.This paper begins by constructing a theoretical model for an open economy to study how risk-averse firms make decisions regarding the sourcing of intermediate inputs in an uncertain environment.Our model solution proposes that firms will source fewer intermediate inputs from countries with more economic uncertainty.An increase in domestic and foreign uncertainty will have opposite impacts on a country's position in GVCs.In this sense,we argue that a country tends to move downstream along GVCs if its own economic policies become more uncertain,and it tends to move upstream with an increase in the uncertainty of its trading partner countries.Our regression analyses,based on data including the World Input-Output Database,World Development Indicators,the UN Comtrade database,and the Economic Policy Uncertainty Index,provide empirical support for this model-based conclusion.Our findings highlight that a nation must consider foreign economic policy uncertainty and maintain domestic policy stability to participate in GVCs.