The impact of Renewable Portfolio Standards on carbon emission trading under the background of China's electricity marketization reform

Energy ◽  
2021 ◽  
pp. 120322
Author(s):  
Zhou Ying ◽  
Zhao Xin-gang
Keyword(s):  
Carbon Emission ◽  
Emission Trading ◽  
Renewable Portfolio Standards ◽  
Carbon Emission Trading ◽  
Marketization Reform ◽  
The Impact

Examining the Impact and Influencing Channels of Emission Trading Pilot Markets in China

2020 ◽  
Vol 11 (1) ◽  
pp. 136-136
Author(s):  
Qiong Wu ◽  
Kanittha Tambunlertchai ◽  
Pongsa Pornchaiwiseskul
Keyword(s):  
Total Factor Productivity ◽  
Co2 Emission ◽  
Carbon Emission ◽  
Emission Trading ◽  
Chinese Government ◽  
Synergy Effect ◽  
Factor Productivity ◽  
Plan Period ◽  
Carbon Emission Trading ◽  
The Impact

The global warming has become a serious issue in the world since the 1980s. The targets for the first commitment period of the Kyoto Protocol cover emissions of the six main greenhouse gasses (GHGs). China is the world's largest CO2 emitter and coal consumer and was responsible for 27.3 percent of the global total CO2 emission and 50.6 percent of the global total coal consumption in 2016 (BP, 2017). As China plays an important role in the global climate change, China has set goals to improve its environmental efficiency and performance. In 2011, the Chinese government for the first time announced an intent to establish carbon emission trading market in China. Eight regional emission trading schemes have been operating since 2013 (seven pilot markets during the 12th Five Year Plan period and one pilot market during the 13th Five Year Plan period) including provinces of Guangdong, Hubei, and Fujian, and cities of Beijing, Tianjin, Shanghai, Shenzhen, and Chongqing. The goal of these regional emission trading pilot markets is to help the government establish an efficient carbon emission trading scheme at national level. Some researchers have been focused on examining the impact of emission trading schemes in China using CGE model by constructing different scenarios and ex-ante analysis using data prior to emission trading pilot markets implementation. While this paper tries to conduct an ex-post analysis with data of 2005-2017 to evaluate the impact of emission trading pilot markets in China at provincial level using difference-in-difference (DID) model. By including both CO2 and SO2 as undesirable outputs to calculate Malmquist-Luenberger (ML) Index to measure green total factor productivity, this paper plans to evaluate the impact of carbon emission trading pilot markets in China via emission reduction, regional green development, synergy effect and influencing channels. This paper tries to answer the following research questions: (1) Do emission trading pilot markets reduce CO2 emission and increase regional green total factor productivity? (2) Is there any synergy effect from emission trading pilot markets? (3) What are the influencing channels of emission trading pilot markets? Keywords: Emission trading, CO2 emissions, Different-in-difference

scholarly journals Supplier Selection and Order Allocation under a Carbon Emission Trading Scheme: A Case Study from China

2019 ◽  
Vol 17 (1) ◽  
pp. 111 ◽  
Author(s):  
Chen Wang ◽  
Qingyan Yang ◽  
Shufen Dai
Keyword(s):  
Supplier Selection ◽  
Carbon Emission ◽  
Emission Trading ◽  
Low Carbon ◽  
Order Allocation ◽  
Total Cost ◽  
Carbon Emission Trading ◽  
The Cost ◽  
The Impact ◽  
Carbon Prices

In implementing carbon emission trading schemes (ETSs), the cost of carbon embedded in raw materials further complicates supplier selection and order allocation. Firms have to make decisions by comprehensively considering the cost and the important intangible performance of suppliers. This paper uses an analytic network process–integer programming (ANP–IP) model based on a multiple-criteria decision-making (MCDM) approach to solve the above issues by first evaluating and then optimizing them. The carbon embedded in components, which can be used to reflect the carbon competitiveness of a supplier, is integrated into the ANP–IP model. In addition, an international large-scale electronic equipment manufacturer in China is used to validate the model. Different scenarios involving different carbon prices are designed to analyze whether China’s current ETS drives firms to choose more low-carbon suppliers. The results show that current carbon constraints are not stringent enough to drive firms to select low-carbon suppliers. A more stringent ETS with a higher carbon price could facilitate the creation of a low-carbon supply chain. The analysis of the firm’s total cost and of the total cost composition indicates that the impact of a more stringent ETS on the firm results mainly from indirect costs instead of direct costs. The indirect cost is caused by the suppliers’ transfer of part of the low-carbon investment in the product, and arises from buying carbon permits with high carbon prices. Implications revealed by the model analysis are discussed to provide guidance to suppliers regarding the balance between soft competitiveness and low-carbon production capability and to provide guidance to the firm on how to cooperate with suppliers to achieve a mutually beneficial situation.

scholarly journals Did carbon emission trading system reduce emissions in China? An integrated approach to support policy modeling and implementation

2021 ◽  
Author(s):  
Lin Aihua ◽  
Pier Paolo Miglietta ◽  
Pierluigi Toma
Keyword(s):  
Carbon Emission ◽  
Control Method ◽  
Emission Trading ◽  
Integrated Approach ◽  
Provincial Government ◽  
Sustainable Growth ◽  
Synthetic Control ◽  
Local Conditions ◽  
Carbon Emission Trading ◽  
The Impact

AbstractAs the highest carbon emission country in the world, it is particularly important to investigate the implementation effect of China’s carbon emission trading (CET) system. Because of the complexity to figure out the counterfactual effect when a single unit is treated, the counterfactual and causal effects of the CET system on the carbon emissions are seldom identified. In order to overcome the weakness that counterfactual effect is difficult to be verified and policy persistence is difficult to be estimated, Synthetic Control Method (SCM) and Regression Discontinuity (RD) are combined to better understand and evaluate the impact of CET system in China. Through the analysis, it is found that CET system is effective in China, but the effect is driven by economic development, energy consumption, FDI and other variables. Because of the differences in economic, geographical, technological and environmental conditions in various areas, each Chinese provincial government should formulate a targeted policy according to local conditions, ensuring an economic and environmentally sustainable growth in the future.

scholarly journals Examining the Impact and Influencing Channels of Carbon Emission Trading Pilot Markets in China

2021 ◽  
Vol 13 (10) ◽  
pp. 5664
Author(s):  
Qiong Wu ◽  
Kanittha Tambunlertchai ◽  
Pongsa Pornchaiwiseskul
Keyword(s):  
Co2 Emissions ◽  
Emission Intensity ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Emission Trading ◽  
So2 Emission ◽  
Green Development ◽  
Carbon Emission Trading ◽  
The Impact ◽  
Trading Policy

As China has an important role in global climate change, the Chinese government has set goals to improve its environmental efficiency and performance and launched carbon emission trading pilot markets in 2013, aiming to reduce CO2 emissions. Based on panel data of 30 provinces from 2005 to 2017, this paper uses the difference-in-difference method to study the impact of China’s carbon emission trading pilot markets on carbon emissions and regional green development. The paper also explores possible influencing channels. The main conclusions are as follows: (1) China’s carbon emission trading policy has promoted a reduction in CO2 emissions and carbon emission intensity and has increased green development in the pilot areas. (2) The main path for China’s carbon emission trading policy to achieve carbon emission reduction and regional green development is to promote technology adoption. (3) China’s carbon emission trading policy achieves green development through synergistic SO2 emission reduction. The pilot carbon markets have reduced both the amount of SO2 emissions and SO2 emission intensity.

scholarly journals The Impact and Influencing Path of the Pilot Carbon Emission Trading market——Evidence From China

2021 ◽  
Vol 9 ◽  
Author(s):  
Wangzi Xu
Keyword(s):  
Carbon Emissions ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Emission Trading ◽  
Carbon Market ◽  
Carbon Trading ◽  
Carbon Emission Reduction ◽  
The World ◽  
Carbon Emission Trading ◽  
The Impact

As the country with the largest CO2 emissions in the world, the Chinese government has put forward clear goals of hitting peak carbon emissions by 2030 and carbon neutralization by 2060. Thus, China started piloting carbon emission trading in 2013, and in July 2021 China opened national carbon trading, which is the largest carbon market in the world (China Launches World, 2021). Therefore, it is very important for China to study the role and mechanism of carbon trading at present. Based on the quasi-natural experiment of China’s carbon market pilot, this paper uses panel data of 30 provinces in mainland China from 2008 to 2019 to conduct an empirical study on carbon emission reduction and the economic effects in China’s pilot provinces through a Time-varying Differences-in-Differences method model. The results show that the implementation of a carbon trading policy can significantly inhibit carbon emissions and promote economic growth. At the same time, this paper further analyzes the emission reduction mechanism of the carbon emissions trading policy through the intermediary effect test and finds that the policy mainly realizes carbon emission reduction by changing the energy consumption structure, promoting low-carbon innovation, and upgrading the industrial structure. In addition, innovative research has found the impact of a carbon price signal and marketization on the emission reduction effect of the carbon market. Finally, targeted suggestions are put forward.

scholarly journals The Impact of China Carbon Emission Trading System on Land Use Transition: A Macroscopic Economic Perspective

Land ◽  
2021 ◽  
Vol 11 (1) ◽  
pp. 41
Author(s):  
Yingkai Tang ◽  
Yunfan Yang ◽  
He Xu
Keyword(s):  
Land Use ◽  
Carbon Emission ◽  
Energy Use ◽  
Emission Trading ◽  
Economic Effects ◽  
Emission Trading System ◽  
Trading System ◽  
Land Use Transition ◽  
Carbon Emission Trading ◽  
The Impact

The carbon emission trading system (CETS) is a milestone policy in the history of China’s emission trading system, which is of great significance to China’s realization of “carbon peak and carbon neutralization”. As an important component of sustainable development, LUT should be related to the CETS. However, in the literature on the CETS, little material deals with its impact on land use transition (LUT). This paper will enrich this literature. Based on 30 provincial regions in China from 2011 to 2017, using the DID and entropy methods, this study investigated the impact of CETS on the trend of LUT from three perspectives: economic effects, environmental effects and Porter effects. The conclusions are that (1) the implementation of the CETS hindered economic development, but optimized energy-use efficiency; (2) the implementation of the CETS reduced the emissions of CO2 and SO2; (3) the implementation of the CETS did not produce a Porter effect; and (4) the influence of the CETS had the characteristics of a spatial cluster. These findings offer some guidance for improving CETS policies and formulating similar environmental regulation policies.

scholarly journals Carbon Emission Trading Policy and Carbon Emission Efficiency: An Empirical Analysis of China’s Prefecture-Level Cities

2021 ◽  
Vol 9 ◽  
Author(s):  
Lei Chen ◽  
Yining Liu ◽  
Yue Gao ◽  
Jingjing Wang
Keyword(s):  
Carbon Emission ◽  
Emission Trading ◽  
Radial Distance ◽  
Environmental Policies ◽  
Developed Countries ◽  
Mediation Effect ◽  
Emission Efficiency ◽  
Carbon Emission Trading ◽  
The Impact ◽  
Trading Policy

Improving carbon emission efficiency is an important means to achieve pollution reduction and sustainable economic development. Rather than focusing on the implementation of market-incentive environmental policies in developed countries, we study the effect of the implementation of market-incentive environmental policies on the efficiency of carbon emissions in developing countries, which is generally ignored by frontiers researches. Based on panel data of 282 cities at prefecture-level and above in China from 2007 to 2017, we first adopt the non-radial distance function (NDDF) and global DEA model to measure the carbon emission efficiency of China’s cities. Then we take the Chinese carbon emission trading pilot as a quasi-natural experiment and explore the impact of carbon emission trading policy on carbon emission efficiency based on DID method. And the mechanisms are analyzed through the mediation effect model. It is found that the carbon emission rights trading policy can significantly improve the carbon emission efficiency of the pilot cities, and it mainly plays a role through three channels: technological progress effect, green innovation effect and energy consumption structure optimization effect. The heterogeneity test results show that for resource-based cities and cities with a higher degree of marketization, the carbon emission trading policy has a more obvious effect on improving carbon emission efficiency.

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