Can China afford to commit to effective carbon pricing policies?

The competitiveness impacts on China's economy.

This paper studies the short-term impact that a carbon pricing policy could have both on domestic and on export markets, in order to examine its impact on sectoral competitiveness in China. A competitiveness impact entailed by carbon price is defined as the incremental carbon cost that a carbon price engenders for a given sector which could change the sector’s market position in domestic and/or foreign markets. Two complementary approaches are used for analyzing the short-term impact.