’A Study On ETS(Emission Trading Scheme), Carbon Tariffs, And Carbon Trading:the Negative And Positive Effects On China’s Economical Growth, A Boost Or A Boondoggle?

A new era has begun with the introduction of a new trade system called carbon trading and the popularity of it increases. As a growing economy, China has been taking action in the field for a decade with its background of opening the country to the world and welcome foreign investment. Cheap labor, low-cost land, rich resources and large amount of FDI pumped the country’s manufacturing industry and China’s GDP has grown to become almost20times bigger over the last30years. However, rapid economic growth comes with environmental troubles on the country. With a heavily driven industry of China’s, now the country is struggling with CO2emissions. ETSs are developed in5cities and2provinces in China and now it is a growing trend to implement emission trade schemes. The aim of this study is to prepare a historical background for carbon field in general and also is to look closer to China’s low carbon economy future by investigating the carbon taxes and tariffs and country’s trade future based on carbon. During the study, the new regulations about carbon tariffs will also tried to be introduced. The answers to the questions "How new regulations may affect Chinese economy and the continuous growth? Will it result with a boom or with shrinkage will conclude the study.