Applying emission trading policy to clean the polluting industry in Shenzhen, China

Rapid economic growth and social development has brought environmental problems, especially resulted in serious water pollution in China. Shenzhen Special Economic Zone is one of the most developed and urbanized areas, facing intense conflict between environmental protection and economic development. Electronic equipment manufacturing has been the core of industrial line in decades and also the most polluted one. The current command and control policies such as closing down and recycling water forcibly are inadequate to achieve industry rationalization and better environmental quality. Emission trading combining with existing abatement policies is feasible to clean the polluting industry by economic incentive.