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On the Path to Paris, Obama and Xi Invite Stronger Global Climate Ambition — Valerie Karplus

From ChinaFAQs The latest Obama-Xi announcement sends a strong message: the two nations are acting fast to enable a global low carbon transition. Friday’s joint announcement is an unprecedented step by the world’s #1 and #2 emitters to commit, at the highest levels, to a strong set of domestic policies and to reinforce global mechanisms that will help to engage peers ahead of the upcoming landmark climate change negotiations in Paris.   Pricing Carbon Xi has committed China to launching a national emissions trading system for CO2 in 2017. An emissions trading system will directly constrain a large share of China’s CO2 emissions and, by putting a price on emissions, encourage reductions where they cost least. This is impressive in that China is pledging to reduce emissions at a time when its per-capita income is less than one-fifth of the U.S. and its economy faces headwinds. It recognizes the long-term … Read More »The post On the Path to Paris, Obama and Xi Invite Stronger Global Climate Ambition — Valerie Karplus appeared first on MIT Sloan Experts.  Read the full post >

China’s economic policymakers have to learn to let go if they want to establish credibility — Yasheng Huang

From South China Morning Post The ability of the Chinese government to control is undisputed and unparalleled compared with governments in other countries and, indeed, compared with the Chinese state during imperial times. If the stock market does not go up, then prevent it from going down by shutting it down. If too many investors want to cash out their positions at the same time, just charge them with “malicious intent to sell” and arrest them as proverbial chickens to scare off the monkeys. The problem is that a government so focused on and obsessed with controls is not one that cares about or is particularly good at establishing credibility. A government needs credibility when it tries to convince others to do its bidding without the ability to dictate actions directly. In his book, The Courage to Act, Ben Bernanke wrote about how US Federal Reserve officials debated and deliberated … Read More »The post China’s economic policymakers have to learn to let go if they want to establish credibility — Yasheng Huang appeared first on MIT Sloan Experts.  Read the full post >






 

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