scholarly journals Real Option Valuation of the R&D Investment in Renewable Energy Considering the Effects of the Carbon Emission Trading Market: A Korean Case

Energies ◽  
2020 ◽  
Vol 13 (3) ◽  
pp. 622
Author(s):  
Kyung-Taek Kim ◽  
Deok-Joo Lee ◽  
Donghyun An
Keyword(s):  
Renewable Energy ◽  
Carbon Emission ◽  
Real Option ◽  
Economic Value ◽  
Emission Trading ◽  
Carbon Markets ◽  
Energy Prices ◽  
Fossil Energy ◽  
Option Model ◽  
Carbon Emission Trading

A carbon market was introduced for the first time in January 2005, when the EU assigned carbon emission allowances to approximately 15,000 enterprises in 25 countries and established a market for emissions trading. In Korea, the carbon emission trading system started from January 2015 with three phases running up to 2025. As many countries have introduced carbon markets, new evaluation models that consider not only fossil energy prices but also carbon emission costs are necessary because additional costs of using fossil energy might have been incurred due to carbon emissions. The purpose of this paper is to develop a real option model that considers not only the uncertainty of existing fossil energy prices, but also the uncertainty of carbon emission rights prices, in evaluating the economic value of renewable energy R&D. Using the real option model, we attempted to assess the effects of the uncertainty of newly appearing carbon markets on the economic value of renewable energy R&D in Korea empirically. Furthermore, we derived an optimal decision path according to the uncertain future situations of fossil energy and carbon markets by analyzing a trinomial lattice model in which the optimal timings of R&D and deployment are identified.

scholarly journals Operation Optimization of Regional Integrated Energy System Considering the Responsibility of Renewable Energy Consumption and Carbon Emission Trading

Electronics ◽  
2021 ◽  
Vol 10 (21) ◽  
pp. 2677
Author(s):  
Feng Li ◽  
Shirong Lu ◽  
Chunwei Cao ◽  
Jiang Feng
Keyword(s):  
Renewable Energy ◽  
Energy Consumption ◽  
Carbon Emission ◽  
Emission Trading ◽  
Energy System ◽  
Low Carbon ◽  
Renewable Energy Consumption ◽  
Operation Optimization ◽  
Integrated Energy System ◽  
Carbon Emission Trading

To “bring carbon emissions to a peak by 2030 and to be carbon-neutral by 2060”, the role of renewable energy consumption and carbon emission trading are promoted. As an important energy consumer of regional energy system, it is necessary for integrated energy system to ensure the low-carbon economic operation of the system. Combined with the responsibility of renewable energy consumption, green certificate trading mechanism, carbon emission rights trading, and China Certified Emission Reduction (CCER), a regional integrated energy system operation optimization model was proposed. The model aims to minimize the total cost of the system, which included with electric bus, thermal bus, and cold bus. Setting different scenarios for the given example, the results show that the optimized model could effectively reduce the operating costs of the system. Moreover, the results also provide an effective reference for the system’s economic and low-carbon operation.

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

Sign in / Sign up

Export Citation Format

Share Document