As representatives from more than 190 countries convene in France for the second week to address ways to slow global warming, an MIT-led team has published a paper outlining a set of options for incorporating equity considerations in a national Emissions Trading System (ETS) for China that could reduce carbon emissions while minimizing economic impact on poorer or less-developed regions.The paper, “Equity and Emission Trading in China,” published in the journal Climatic Change, outlines a sophisticated menu aimed at Chinese policymakers showing how the burden of reducing carbon emissions could be shared or divided across the country’s provinces under a market-based carbon pricing system.“Emission trading systems have been shown to be highly effective when they are allowed to work, but one of the toughest challenges involves how to distribute the cost,” said lead author Valerie Karplus, Assistant Professor of Global Economics and Management at the MIT Sloan School of Management. “We compare alternative schemes for allocating emissions rights that can effectively de-couple who pays for reductions from where the reductions actually occur.”