Sharing mitigation burden among sectors in China: Results from CEEPA

Based on the China Energy and Environmental Policy Analysis model which takes into account the current characters and potential reforms of energy markets in China, and from the perspective of economy-wide cost-effectiveness, this study aims to analyze how carbon mitigation burdens should be shared among key emission sectors in China, as well as how these sectors would behave to meet their burdens. This study finds that in general, allocating mitigation burdens based on historical emissions could realize the national target in a cost-effective way. However, some adjustments should be made to the coal, electricity, and transportation sectors. The mitigation targets for all sectors, especially for the coal sector, should not be set too high in the short-term. And the burden shared by the electricity sector should increase if electricity pricing is deregulated; meanwhile, energy efficiency and the energy input structure should be improved in the electricity sector.