Emerging Markets’ Carbon Pricing Development: A Comparative Analysis of China and South Korea’s Experience
The transition to low-carbon economies presents unique challenges for emerging markets, particularly in developing effective carbon pricing mechanisms that balance environmental objectives with economic development needs. This study examines the ratio legis of carbon pricing policies through a compa...
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MDPI AG
2025-05-01
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| author | Yoo Kee Law Chng Saun Fong |
| author_facet | Yoo Kee Law Chng Saun Fong |
| author_sort | Yoo Kee Law |
| collection | DOAJ |
| description | The transition to low-carbon economies presents unique challenges for emerging markets, particularly in developing effective carbon pricing mechanisms that balance environmental objectives with economic development needs. This study examines the ratio legis of carbon pricing policies through a comparative analysis of China and South Korea’s established systems, utilizing the FASTER (Fairness, Alignment, Stability, Transparency, Economic efficiency, Reliability) principles evaluation framework. Using qualitative doctrinal methodology integrated and comparative policy analysis legislative frameworks and market data from 2015–2023, this paper examines Malaysia as a representative case study wherein carbon market initiatives remain in voluntary phase with approximately 150,000 carbon credits traded. The comparative results demonstrate that a choice between China’s intensity-based approach and South Korea’s absolute cap system should be guided by the following: (1) development stage, with industrializing economies benefiting from China’s flexible model; (2) institutional capacity, where limited monitoring capabilities favor phased approaches; (3) economic structure, with emissions-intensive economies requiring growth-accommodating systems; (4) policy landscape complexity; and (5) market size. The research proposes a structured implementation framework for emerging markets, demonstrated through Malaysia’s context, that enables effective emission reduction while maintaining economic competitiveness during the transition to low-carbon economies. |
| format | Article |
| id | doaj-art-474aebd440b64dba8a103640d077ded2 |
| institution | Matheson Library |
| issn | 2673-4060 |
| language | English |
| publishDate | 2025-05-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | World |
| spelling | doaj-art-474aebd440b64dba8a103640d077ded22025-06-25T14:31:49ZengMDPI AGWorld2673-40602025-05-01625810.3390/world6020058Emerging Markets’ Carbon Pricing Development: A Comparative Analysis of China and South Korea’s ExperienceYoo Kee Law0Chng Saun Fong1Institute for Advanced Studies, Universiti Malaya, Kuala Lumpur 50603, MalaysiaInstitute for Advanced Studies, Universiti Malaya, Kuala Lumpur 50603, MalaysiaThe transition to low-carbon economies presents unique challenges for emerging markets, particularly in developing effective carbon pricing mechanisms that balance environmental objectives with economic development needs. This study examines the ratio legis of carbon pricing policies through a comparative analysis of China and South Korea’s established systems, utilizing the FASTER (Fairness, Alignment, Stability, Transparency, Economic efficiency, Reliability) principles evaluation framework. Using qualitative doctrinal methodology integrated and comparative policy analysis legislative frameworks and market data from 2015–2023, this paper examines Malaysia as a representative case study wherein carbon market initiatives remain in voluntary phase with approximately 150,000 carbon credits traded. The comparative results demonstrate that a choice between China’s intensity-based approach and South Korea’s absolute cap system should be guided by the following: (1) development stage, with industrializing economies benefiting from China’s flexible model; (2) institutional capacity, where limited monitoring capabilities favor phased approaches; (3) economic structure, with emissions-intensive economies requiring growth-accommodating systems; (4) policy landscape complexity; and (5) market size. The research proposes a structured implementation framework for emerging markets, demonstrated through Malaysia’s context, that enables effective emission reduction while maintaining economic competitiveness during the transition to low-carbon economies.https://www.mdpi.com/2673-4060/6/2/58carbon pricingemissions trading systememerging marketssustainable developmentFASTER principlelocal adaptation |
| spellingShingle | Yoo Kee Law Chng Saun Fong Emerging Markets’ Carbon Pricing Development: A Comparative Analysis of China and South Korea’s Experience World carbon pricing emissions trading system emerging markets sustainable development FASTER principle local adaptation |
| title | Emerging Markets’ Carbon Pricing Development: A Comparative Analysis of China and South Korea’s Experience |
| title_full | Emerging Markets’ Carbon Pricing Development: A Comparative Analysis of China and South Korea’s Experience |
| title_fullStr | Emerging Markets’ Carbon Pricing Development: A Comparative Analysis of China and South Korea’s Experience |
| title_full_unstemmed | Emerging Markets’ Carbon Pricing Development: A Comparative Analysis of China and South Korea’s Experience |
| title_short | Emerging Markets’ Carbon Pricing Development: A Comparative Analysis of China and South Korea’s Experience |
| title_sort | emerging markets carbon pricing development a comparative analysis of china and south korea s experience |
| topic | carbon pricing emissions trading system emerging markets sustainable development FASTER principle local adaptation |
| url | https://www.mdpi.com/2673-4060/6/2/58 |
| work_keys_str_mv | AT yookeelaw emergingmarketscarbonpricingdevelopmentacomparativeanalysisofchinaandsouthkoreasexperience AT chngsaunfong emergingmarketscarbonpricingdevelopmentacomparativeanalysisofchinaandsouthkoreasexperience |