President Xi Jinping of China will
be making history by starting a national program in 2017 that will limit and
put a price on greenhouse gas emissions in China. The program President Jinping
is planning to implement is a called a cap-and-trade system. Cap-and-trade is a regulatory system that is meant to reduce certain
kinds of emissions and pollution and to provide companies with a profit incentive to reduce their pollution levels faster than
their peers. Under a cap-and-trade program, a limit on certain types of
emissions or pollutions is set, and companies are permitted to sell the unused
portion of their limits to other companies that are struggling to comply. This
will greatly reduce the negative externalities that come with the high
pollution emissions in China that has caused countless social issues across the
country.
Tension
between the two nations is still heated caused by countless cyber-attacks over
the past several weeks waged by China. But this program will bring about change
and is the first step for China and America collaboration to achieve one
ultimate goal of reducing pollution emissions in the two largest economies in
the world. On the hand, the Chinese economy will be taking a bit hit when this
program is implemented. China always strived on having high production output
but with regulations in place, the expenses for various industries will
increase and they will have no choice to reduce output. This might lead to a
decrease in foreign investment and they will relocate to an area where there are
fewer regulations.
1 comment:
As said in the news, President Obama tried to push a similar cap-and-trade program through Congress. But the measure died in the Senate, in part because lawmakers from both parties feared that a serious climate change policy could threaten economic competition with China. I guess it is easier to make it happen since China is controlled by one party.
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