PolicyResearchWorkingPaper10872Rate-BasedEmissionsTradingwithOverlappingPoliciesInsightsfromTheoryandanApplicationtoChinaCarolynFischerChenfeiQuLawrenceH.GoulderDevelopmentEconomicsDevelopmentResearchGroupAugust2024PublicDisclosureAuthorizedPublicDisclosureAuthorizedPublicDisclosureAuthorizedPublicDisclosureAuthorizedProducedbytheResearchSupportTeamAbstractThePolicyResearchWorkingPaperSeriesdisseminatesthefindingsofworkinprogresstoencouragetheexchangeofideasaboutdevelopmentissues.Anobjectiveoftheseriesistogetthefindingsoutquickly,evenifthepresentationsarelessthanfullypolished.Thepaperscarrythenamesoftheauthorsandshouldbecitedaccordingly.Thefindings,interpretations,andconclusionsexpressedinthispaperareentirelythoseoftheauthors.TheydonotnecessarilyrepresenttheviewsoftheInternationalBankforReconstructionandDevelopment/WorldBankanditsaffiliatedorganizations,orthoseoftheExecutiveDirectorsoftheWorldBankorthegovernmentstheyrepresent.PolicyResearchWorkingPaper10872Jurisdictionsthatrelyonemissionstradingtocontrolemis-sionsoftenutilizeotherenvironmentalorenergypoliciesaswell,includingpoliciestosupportrenewableenergyandreduceenergyconsumption.Overlappingpoliciespro-duceeconomicinteractionsthatcanleadtoquitedifferentoutcomesfromwhatmightbepredictedafterexaminingindividualpoliciesseparately.Priorliteratureonpolicyinteract...
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