China looks set to introduce a new carbon tax and other levies aimed at cleaning up severe environmental problems. Whether the tax will be high enough to make a big difference is unclear. But Chinese officials know they must address the challenge soon, says Erwann Michel-Kerjan, managing director of Wharton’s Risk Management and Decision Processes Center.

For more on China and carbon taxes, see:

What Will China’s Likely Carbon Tax Mean?

California and China Offer Two Visions of a Greener World