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《Economic Research Journal》 2008-06
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The Political Economy of Emission in China:Will a Low Carbon Growth Be Incentive Compatible in Next Decade and Beyond?

Cai Fang,Du Yang and Wang Meiyan  
The effectiveness of emission reduction policy lies on the endogenous demands for change in growth pattern and requirement for better environment.Only when economic development moves to the stage at which economic growth becomes productivity-driven,can the policy package aimed to significantly reduce greenhouse gas emission be incentive-compatible with the development motivation of local governments and behavior of enterprises.By estimating the Environment Kuznets Curve,which predicts the turning point of emission from increase to decline,this paper examines the induced need for the Chinese economy to implement emission reduction strategy.The results show that it is not enough to wait for the turning point to come,unless the policy implementation can be further strengthened in order to make incentive compatible among the central and local governments,enterprises,and people.
【CateGory Index】: F124;F206;X321
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