Air Pollution

Will China cheat on cap-and-trade?

Will China cheat on cap-and-trade?

When China announced that it would institute a cap-and-trade program to control greenhouse gas emissions, many environmentalists praised the development. They took it as a sign that the world's second-largest economy is serious about becoming a leader in the fight against climate change

But does China have the institutions to make cap-and-trade, a system suited to Western capitalist countries, work? Or should it apply its own governance traditions — which have functioned incredibly well to create a vibrant economy, develop a highly educated workforce and turn a developing country into a world leader — as principal tools for emissions control?

The legitimacy of...