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Abstract

Recently, energy saving/emission reduction has been a very import issue for policy makers and researchers. As a very large country, China’s regional policies play an important role in energy saving/emission reduction as well as national-wide policy. Many internatioanl studies has showed unilateral emission reduction policies may result in the “carbon leakage”, i.e. emission sources migrate from abating to non-abating countries. Furthermore, some studies pointed out that the leakage is quantitatively significant. In the same way, China’s regional energy/environmental policy may also bring on the “emission/energy use leakage” effect among provinces. This paper will use China’s multi-regional CGE model to analyze the “emission/energy use leakage” effect due to regional policy.

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