Carbon market for sustainable growth

With China set to launch an emission trading system (ETS) nationwide to reduce carbon dioxide emissions, its policymakers could learn a thing or two from California's successful ETS.

California's experience suggests the ETS will help China achieve sustainable growth. Many may question how an environmental policy can help generate sustainable economic growth. The answer is, it can do so in three ways.

First, imposing a price on carbon emissions will help achieve President Xi Jinping's goal of more efficient economic allocation through market signals.