china’s long road to a low-carbon economy: an institutional analysis

7/31/2019 Chinas Long Road to a Low-Carbon Economy: An Institutional Analysis

1/26

p a p e r s e r i e s

Chinas Long Road to a Low-CaRbon EConomy

an institutionaL anaLysis

Philip Andrews-Speed


2/26

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3/26

Chinas Long Road to a Low-Carbon Economy

An Institutional Analysis

Transatlantic Academy Paper Series

May 2012

Philip Andrews-Speed1

Fellow, Transatlantic Academy

P A-S f f C H. H C k

99. Mj Energy Policy and Regulation in the Peoples Republic of China (K, 4) China,

Oil and Global Politics, R D (R, ). T f kEnergy

Governance in China: Transition to a Low-Carbon Economy (Pv MM, )

Exv S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

C R E D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

C R C Dx E. . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

M T L-C E . . . . . . . . . . . . . . . . . . . . . 9

I f Gv . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

C I f Gv . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

E Pk C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

E S Rf C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

E S R C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

T Ok f C L-C T. . . . . . . . . . . . . . . . . . . . . . .

B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4


4/26

Chinas Long Road to a Low-Carbon Economy 1

Executive Summary

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5/26


Introduction

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6/26

Transatlantic Academy4

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7/26


Chinas Rising Energy Demand

2

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(S, 4; E, 4). S x

f

C ,


8/26


Only since

2003 has the

government

made real efforts

to switch the

focus on energy

policy from the

supply-side to the

demand-side

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9/26


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Chinas Rising

Carbon Dioxide Emissions3


10/26


C f WTO v .


11/26


Moving to a low-

carbon economy

is not just a

technological

issue, but

necessarily

involves changes

across the whole

of a society.

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Managing the Transition

to a Low-Carbon Economy4


12/26


Institutions

underpin

all political,

economic, and

social behavior

in a society.

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Institutions of Governance

5


13/26


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1. Embeddedinsttutons: Norms,

values, ideas

2. Insttutonal

environment: politcal

system, bureaucratc

structures of government,

judiciary, legal system

Behaviors: The actual

transactons which

determine prices, output

quanttes

3. Inst

tut

ons whichgovern transactons

Firms, bureaus, markets,

hybrids, networks. Policies

and instruments

Figure 1 Diagrammatic representation of the three levels of institution and how they determine or constrain

behaviors in transactions. (Wider arrows indicate greater inuence) Source: Adapted from Williamson (2000)


14/26


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Chinas Institutions of Governance

6

It is all too easy

to emphasize

the resilience

to change and

thus to ignore

the remarkable

and, in economic

terms, successfu

changes that ha

been implement

since the late

1970s.


15/26


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16/26


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Energy Policymaking in China

7

The tensions tha

exist between

resilience and

adaptability crea

a high degree of

ambiguity in the

future trajectory

of Chinas energy

transition and

paralysis in

strategic policy

thinking.


17/26


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(K, 9).


18/26


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Energy Sector Reform in China

8

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status quo. Of ,

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This willingness

to undertake

reform to the

energy sector ha

been tempered

by reluctance orinability to follow

through to the

logical end-point

of privatization,

market

liberalization, an

competition.


19/26


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Energy Sector Regulation in China

9

The difficulties

of policy

implementation

and regulation

permeate all

sectors of China

economy, but

are particularly

daunting in the

energy sector.


20/26


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Initiatives are

likely to be

successful if they

can be driven

through with

abundant funding

and the direct

involvement of a

small number of

large state-owned

enterprises.


21/26


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Policy programs

that rely on

changing the

behavior of large

numbers of loca

government

agencies,

enterprises,

or citizens are

less likely to be

successful.


22/26


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The Outlook for Chinas

Low-Carbon Transition10

Significant or

even radical

institutional

change across the

polity, economy,

and society in

China will be

required in order

to accelerate the

transition to a low-

carbon economy.


23/26


q x ff

v .


24/26


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