State versus market in China's low-carbon energy transition: An institutional perspective

China has taken great strides over the last 15 years to constrain the rise of CO2 emissions from its energy sector. Energy intensity has declined, the installed capacity for wind and solar energy has soared, and the share of fossil fuels is falling. This success has been achieved through deploying administrative policy instruments backed by generous state finance. As this approach is yielding diminishing returns, the government has launched a...