China's unconventional carbon emissions trading market: The impact of a rate-based cap in the power generation sector

China has launched a national level carbon emissions trading market with rate-based cap and benchmarks in the power generation sector. This system (ETS) differs from mass-based one, which lacks an absolute cap. study assesses impact of such unconventional ETS on economic development, emission mitigation, transition by applying multi-regional dynamic computable general equilibrium model. The results show that can facilitate decarbonisation sector reduce intensities coal gas power, two technologies covered at first stage China's ETS. Furthermore, these will be decreased significantly, noticeable fallback electrification occur. National GDP loss under is slightly higher than one cap, while provincial losses have close relations phaseout permit scarcity.