Incentive Mechanisms for the Development of a Low-carbon Society in Asia

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Energy consumption in Asian countries has been increasing rapidly, and in parallel, the emission of carbon dioxide has been rising. This rapid increase of energy consumption is triggered by the economic development and expanding business activities in these countries. Lack of energy-saving mechanism is another factor contributing to the rising energy consumption level. In this paper, we provide an overview of the energy consumption pattern in Asian countries, particularly in China, and examine the impediments not to operate incentives and mechanisms to reduce energy consumption in residential building and industry. We also demonstrate the alternative framework to promote incentives and the economic theory based on social optimum to create a low-carbon society.

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