This report represents a joint effort by Energy Innovation LLC, China’s National Center for Climate Change Strategy and International Cooperation (NCSC) and China’s Energy Research Institute (ERI) to provide insight into which climate and energy policies can most cost-effectively drive down China’s emissions. Together, the three organizations built a system dynamics model, the “Energy Policy Simulator” (EPS), to assess the combined effects of 35 climate, energy, and environmental policies on a variety of metrics, including CO2 and PM2.5 emissions, use of various fuels, cash flow changes, and monetized social benefits from avoided public health impacts and climate damages. More than 10,000 scenarios were tested using the EPS, seeking policy combinations that could meet China’s emissions goals most cost-effectively. Two of those policy scenarios are highlighted in this report (plus a reference scenario and a theoretical scenario based on the strongest internationally observed policies). Read More