Potential carbon emission abatement cost recovery from carbon emission trading in China

2016 ◽  
Vol 11 (3) ◽  
pp. 842-854 ◽  
Author(s):  
Ke Wang ◽  
Yujiao Xian ◽  
Jieming Zhang ◽  
Yi Li ◽  
Linan Che
Keyword(s):  
Cost Saving ◽  
Carbon Emission ◽  
Emission Trading ◽  
Cost Savings ◽  
Abatement Cost ◽  
Emission Permits ◽  
Content Type ◽  
Emission Abatement ◽  
Industry Sector ◽  
Emission Permits Trading

Purpose This study aims to provide an estimation of carbon dioxide (CO2) emission abatement costs in China’s industry sector during the period of 2006-2010, and additionally provide an ex-post estimation of CO2 abatement cost savings that would be realized if carbon emission permits trading among different industry sectors of 30 provinces in China during the same period were allowed, to answer the question that whether the industrial carbon emission abatement cost can (partially) be recovered from carbon emission trading in China. Design/methodology/approach The joint production framework associated with the environmental technology is utilized for formulating the models for estimating abatement costs and simulating emission permits trading scheme. Several data envelopment analysis-based models that could deal with both the desirable and undesirable outputs within the above framework are utilized for abatement cost saving estimation. The weak disposability assumption and variable returns to scale assumption are applied in the modelling. Findings In China’s industry sector, during 2006-2010, the estimated CO2 emission abatement cost was 1,842 billion yuan, which accounts for 2.45 per cent of China’s total industrial output value; the emission abatement cost saving from emission permits trading would be 315 billion yuan, which accounts for 17.12 per cent of the emission opportunity abatement cost; and additional 1,065.95 million tonnes of CO2 emission reductions would be realized from emission permits trading, and this accounts for 4.75 per cent of the total industrial CO2 emissions. Research limitations/implications The estimation is implemented at the regional level, i.e. the emission permits trading subjects are the whole industry sectors in different Chinese provinces, because of the data limitation in this study. Further estimation could be implemented at the enterprise level to provide a deeper insight into the abatement cost recovery from emission permits trading. Practical implications The estimation models and calculation process introduced in this study could be applied for evaluating the efficiency and effectiveness of pollutant emission permits trading schemes from the perspective that whether these market-based abatement policy instruments help to realize the potential abatement cost savings. Originality/value To the best of the authors’ knowledge, no study has provided the estimation of CO2 emission abatement cost and the estimation of CO2 abatement cost saving effect from emission permits trading for China’s industry sector. This study provides the first attempt to fill this research gap.

scholarly journals How to Allocate Carbon Emission Permits Among China’s Industrial Sectors Under the Constraint of Carbon Intensity?

2019 ◽  
Vol 11 (3) ◽  
pp. 914 ◽  
Author(s):  
Jianguo Zhou ◽  
Yushuo Li ◽  
Xuejing Huo ◽  
Xiaolei Xu
Keyword(s):  
Carbon Emissions ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Abatement Cost ◽  
Carbon Intensity ◽  
Carbon Trading ◽  
Emission Permits ◽  
Carbon Abatement ◽  
Industrial Sectors ◽  
Ferrous Metals

With the official launch of China’s national unified carbon trading system (ETS) in 2017, it has played an increasingly important role in controlling the growth of carbon dioxide emissions. One of the core issues in carbon trading is the allocation of initial carbon emissions permits. Since the industry emits the largest amount of carbon dioxide in China, a study on the allocation of carbon emission permits among China’s industrial sectors is necessary to promote industry carbon abatement efficiency. In this study, industrial carbon emissions permits are allocated to 37 sub-sectors of China to reach the emission reduction target of 2030 considering the carbon marginal abatement cost, carbon abatement responsibility, carbon abatement potential, and carbon abatement capacity. A hybrid approach that integrates data envelop analysis (DEA), the analytic hierarchy process (AHP), and principal component analysis (PCA) is proposed to allocate carbon emission permits. The results of this study are as follows: First, under the constraint of carbon intensity, the carbon emission permits of the total industry in 2030 will be 8792 Mt with an average growth rate of 3.27%, which is 1.57 times higher than that in 2016. Second, the results of the carbon marginal abatement costs show that light industrial sectors and high-tech industrial sectors have a higher abatement cost, while energy-intensive heavy chemical industries have a lower abatement cost. Third, based on the allocation results, there are six industrial sub-sectors that have obtained major carbon emission permits, including the smelting and pressing of ferrous metals (S24), manufacturing of raw chemical materials and chemical products (S18), manufacturing of non-metallic mineral products (S23), smelting and pressing of non-ferrous metals (S25), production and supply of electric power and heat power (S35), and the processing of petroleum, coking, and processing of nuclear fuel (S19), accounting for 69.23% of the total carbon emissions permits. Furthermore, the study also classifies 37 industrial sectors to explore the emission reduction paths, and proposes corresponding policy recommendations for different categories.

scholarly journals Thermal Behaviour Analysis and Cost-Saving Opportunities of PCM-Integrated Terracotta Brick Buildings

2021 ◽  
Vol 2021 ◽  
pp. 1-15
Author(s):  
A. Chelliah ◽  
Shaik Saboor ◽  
Aritra Ghosh ◽  
Karolos J. Kontoleon
Keyword(s):  
Cost Saving ◽  
Air Conditioning ◽  
Carbon Emission ◽  
Energy Use ◽  
Phase Change Materials ◽  
Cost Savings ◽  
Building Design ◽  
The Other ◽  
Emission Mitigation ◽  
Organic Mixture

Buildings contribute greatly to global energy use and consumption. The energy consumption of buildings is significant due to the integration of heating, ventilation, and cooling systems. Evidently, the utilization of phase change materials (PCMs) in building design can adequately reduce air-conditioning costs of buildings by diminishing external heat gains and losses. Moreover, the adoption of natural, eco-friendly, and cost-effective materials, such as terracotta bricks, can be valuable from an environmental point of view. This paper intends to assess the air-conditioning cost-saving potential of several PCM stuffed terracotta brick configurations. In that respect, the encapsulated PCMs were filled in the hollows of terracotta bricks. For the aims of this study, five different types of PCMs were considered, in relation to the thermophysical properties of their solid and liquid state (OM18: organic mixture, HS22: hydrated salt, OM29, OM32, and OM37). In addition, three PCM-stuffed terracotta brick configurations were examined with reference to the number of the PCM layers (PCMTB-A with one PCM layer, PCMTB-B with two PCM layers, and PCMTB-C with three PCM layers). Therefore, fifteen PCM-stuffed terracotta brick configurations were analysed numerically, related to environmental conditions that refer to two different scenarios in India (hot dry and composite climates). Results have unveiled that the OM32 PCM assemblies have shown better thermoeconomic performance compared to the other types of PCM. With respect to the most advantageous number of PCM layers, the evidence of this analysis has exposed that the PCMTB-C case has shown the highest annual air-conditioning cost-savings and the highest yearly carbon emission mitigations in both climates (Ahmedabad and Lucknow). In hot-dry climates, the PCMTB-C with OM32 PCM exhibited the highest annual air-conditioning cost-saving ($ 74.7), the highest annual carbon emission mitigation (1.43 ton/kWh), and the moderate payback period (22.5 years) compared to the other cases. To conclude, the findings of this study suggest a suitable way to improve the decision-making process of building design, while bridging the performance gap in terms of energy efficiency and sustainability.

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