By Alex Lo
This ebook explores the political points of China's weather swap coverage, targeting the newly validated carbon markets and carbon buying and selling schemes. Lo makes a case for figuring out the coverage swap when it comes to discourse and on the subject of narratives of nationwide strength and development.
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Additional resources for Carbon Trading in China: Environmental Discourse and Politics
These programmes had achieved some success during the 1990s. In particular, the successful experience with the US Acid Rain Program, launched in 1995, prompted attempts to bring the concept of emissions trading into the debates on climate change and harness market forces for controlling GHG emissions. While the EU hesitated to consider emissions trading, the Clinton Government formally proposed emissions trading in the UN climate change meetings in December 1996 and succeeded in getting international support for the inclusion of market mechanisms in the Kyoto Protocol (Newell and Paterson, 2010).
Some critics raise questions about carbon trading for only providing new avenues for corporate economic players to reap short-term benefits, without meeting environmental objectives (Lohmann, 2006; Spash, 2010). This gives us just another form of market institution that is detrimental to the environment. While all market actors seek profits, the main discourse, as described by authors cited above, is one that features converging material interests among different actors. These authors, such as Meckling, Newell, Political Economy of Carbon Trading 23 and Paterson, tend to understand emissions trading as a business (or financial) case for action on climate change.
Allowing for alternative perspectives and explanations is important as the norms of liberal market economies (LME) cannot be taken as given. I embark on this endeavour by presenting a review of past attempts in deconstructing the discourses of carbon trading. The remainder of this chapter begins with two overview sections on backgrounds, one on the history of carbon trading and the other on the relevant properties of carbon emissions reductions. Then I revisit several authoritative studies in the political economy of carbon trading, focusing on the agency of capital.