The evolution of markets for water pollution allowances in China: a case study of Jiaxing

The central question this paper asks is: How can we understand the evolution of markets for water pollution allowances? To answer, we have conducted an in-depth study of the development of water pollution allowance markets in Jiaxing, China, which was one of the first cities to experiment with these markets. We have completed a longitudinal analysis and conclude that market design is a continual learning process, with adjustments to solve issues and to respond to external changes.