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A market for clean air: China adopts emissions trading to curb pollution

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This paper describes China's sulfur dioxide (SO2) emissions trading program, a market-based approach to reducing air pollution modeled on a successful US program launched in 1995. The US "cap and trade program" sets a limit on how much SO2 a factory or power plant can emit. A facility that produces fewer emissions than the maximum allowed gets the difference as a credit, which it can sell to companies that cannot meet the cap. China's cap and trade program aims to reduce SO2 emissions nationally by 10 percent from its 2000 levels and by 20 percent in certain heavily polluted areas.

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IEEE Spectrum  (Volume:42 ,  Issue: 6 )