Outdated capacity and substantial potential for energy conservation are the two main features of energy-intensive sectors in developing countries. Such countries also seek to implement market-based options to further control domestic carbon emissions as well as to promote the withdrawal of outdated capacity and upgrade production level. This paper presents a quantitative assessment of the emission trading scheme (ETS) for China's iron and steel industry. The diverse array of normal and outdated capacities was modeled in a two-country, three-good partial equilibrium model.

This paper shows how policies aimed at insuring health risks and those intended to improve the environment are (and should be) deeply intertwined. In the model economy inspired by recent Chinese experience, pollution raises the likelihood of future, poor health prompting households to save more so as to self-insure against anticipated medical expenses. Increased household saving generates more capital while capital use by firms generates more pollution.

To move China's climate policy forward, improved analyses of climate impacts on economic sectors using rigorous methodology and high quality data are called for. We develop an empirical framework, using fine-scale meteorological data, to estimate the link between corn and soy bean yields and weather in China.

City is the major energy user and emission source in China,which accounts for 70% of total energy consumption. To achieve the sustainable development, China need to further boost the urban development while lower the huge energy demand. Will the accelerating urbanization process lead to higher energy demand? This issue raises intensive attention from the decision-makers, public, and academic society. Most previous studies concluded that the urbanization is positively associated with household energy demand.