Abstract: The paper applies Contingent Valuation Method (CVM) to investigate the Chinese public’s willingness to pay (WTP) for CO₂ emissions reduction policy. Face to face interviews were conducted to collect 1653 valid questionnaires from Beijing, Shanghai, Shandong Province and Fujian Province. A model was constructed to understand the factors that determined WTP. The results indicate that the Chinese public is willing to pay 201.86 CNY annually to support the policy in reducing greenhouse gas emissions. Participants from Beijing show the highest WTP, followed by participants from Fujian and Shandong, and those from Shanghai report the lowest WTP. The findings reveal that participants with higher income, higher satisfaction to current life, and being aware of climate issues are willing to pay more for CO₂ emissions reduction, and those who are young, male and members of the Communist Party also indicate a higher WTP. The results imply that translating the public’s willingness to protect climate into actions should be taken into account in China’s low carbon policy. There is a need to consider the difference of willingness to pay for emissions reduction among different social groups if the market-based mechanisms such as carbon tax would be designed to facilitate emissions reduction.

Key words: climate policy, Contingent Valuation Method, willingness to pay, CO₂ emissions reduction