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 Carbon Emission Reduction Strategy for Energy Users in China

2020 ◽  
Vol 12 (16) ◽  
pp. 6498 ◽  
Author(s):  
Fuquan Zhao ◽  
Feiqi Liu ◽  
Han Hao ◽  
Zongwei Liu
Keyword(s):  
Renewable Energy ◽  
Carbon Emissions ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Current Status ◽  
Chinese Government ◽  
Carbon Trading ◽  
Levelized Cost Of Electricity ◽  
Carbon Emission Reduction ◽  
The Cost

The Chinese government has made a commitment to control carbon emissions, and the deployment of renewable energy power generation is considered as an effective solution. In recent years, great effort has been exerted to support the development of renewable energy in China. While, due to fiscal pressures and changes in management policies, related subsidies are diminishing now and energy users are asked to pay for the cost. Regulations about carbon cap and renewable energy consumptions are issued to transfer the responsibility of consuming renewable energy and reducing carbon emissions to energy consumers. A national carbon trading system is set up in China and is under its growth stage. Therefore, this study lists the factors that should be considered by the energy users, analyzes the levelized cost of electricity generated by renewable energy in four cities in China, Beijing, Shanghai, Guangzhou, Wuhan, and compares the results with current carbon prices. Based on the research, under the current status, it is still more cost-efficient for enterprises to buy carbon credits than introduce renewable energies, and great differences among cities are shown due to different natural conditions. Besides, with diminishing subsidies and development of the carbon trading market, the carbon price will gradually reflect the actual value and carbon emission reduction costs will become an important part of enterprise expenditure. In the long term, enterprises should link more factors to carbon emissions, like social responsibility and brand image, instead of only the cost.

scholarly journals Research on Carbon Emission Reduction Effect of China's Carbon Trading Pilot

2020 ◽  
Vol 7 (5) ◽  
pp. 240-250
Author(s):  
Linshan Wang ◽  
Chuanming Liu ◽  
Xi Yang
Keyword(s):  
Carbon Emissions ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Industrial Structure ◽  
Government Support ◽  
Carbon Trading ◽  
Carbon Emission Reduction ◽  
Carbon Emissions Trading ◽  
Emission Rights ◽  
Development Levels

Carbon emissions trading is one of the important ways to reduce carbon emissions by giving CO2 emission rights a commodity attribute that allows them to trade on the market and to reduce greenhouse gas emissions through the market mechanisms. Based on the inter-provincial panel data from 1997 to 2016, this paper constructs a basic theoretical analysis framework to analyze the carbon emission reduction effects of carbon trading policies, adopts PSM-DID to study the carbon emission reduction effects of carbon trading pilots. This study finds that: (1) The implementation of the carbon trading pilot can promote carbon emission reduction, but the pilot provinces and municipalities have different economic development levels, industrial structure and supporting measures adopted after the implementation of the carbon trading pilot policy, resulting in differences in carbon emission reduction effects between pilot provinces. (2) For the seller of carbon emission rights, carbon emission reduction is achieved through three effects of "market return-inducing", "technical innovation incentive" and "government support"; for the buyer, carbon emission reduction is achieved through three effects of "enterprise cost pressure", "process innovation motivation" and "market guiding". (4) The results of traditional PSM-DID further prove that the carbon trading pilot can significantly reduce CO2 emissions.

scholarly journals Development and Utilization of Renewable Energy Based on Carbon Emission Reduction—Evaluation of Multiple MCDM Methods

2021 ◽  
Vol 13 (17) ◽  
pp. 9822
Author(s):  
Tao Li ◽  
Ang Li ◽  
Yimiao Song
Keyword(s):  
Renewable Energy ◽  
Wind Power ◽  
Carbon Emissions ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Carbon Intensity ◽  
High Carbon ◽  
Carbon Emission Reduction ◽  
Photovoltaic Power ◽  
Development And Utilization

With the proposed target of carbon peak and carbon neutralization, the development and utilization of renewable energy with the goal of carbon emission reduction is becoming increasingly important in China. We used the analytic hierarchy process (ANP) and a variety of MCDM methods to quantitatively evaluate renewable energy indicators. This study measured the sequence and differences of the development and utilization of renewable energy in different regions from the point of view of carbon emission reduction, which provides a new analytical perspective for the utilization and distribution of renewable energy in China and a solution based on renewable energy for achieving the goal of carbon emission reduction as soon as possible. The reliability of the evaluation system was further enhanced by confirmation through a variety of methods. The results show that the environment and carbon dimensions are the primary criteria to evaluate the priority of renewable energy under carbon emission reduction. In the overall choice of renewable energy, photovoltaic energy is the best solution. After dividing regions according to carbon emission intensity and resource endowment, areas with serious carbon emissions are suitable for the development of hydropower; areas with sub-serious carbon emissions should give priority to the development of photovoltaic or wind power; high-carbon intensity area I should vigorously develop wind power; high-carbon intensity area II should focus on developing photovoltaic power; second high-carbon intensity areas I and II are suitable for the development of wind power and photovoltaic power; and second high-carbon intensity areas III and IV are the most suitable for hydropower.

scholarly journals Cost And Welfare: A Simulation of Establishing A Unified Carbon Market In China

2021 ◽  
Author(s):  
Xinru Ji ◽  
Lei Su
Keyword(s):  
Emission Reduction ◽  
Abatement Cost ◽  
Directional Distance Function ◽  
Carbon Market ◽  
Shadow Prices ◽  
Carbon Trading ◽  
Carbon Abatement ◽  
Trading Market ◽  
The Government ◽  
The Cost

Abstract BackgroundGlobal warming has aroused wide concern of international community, which has reached a consensus on the carbon abatement. In 2017, China should have established a unified market for carbon emission trading, while the government has postponed the establishment because the uncertainty of cost calculation and welfare. Therefore, the cost and welfare of carbon abatement in simulated scenarios could help the government in establishing a unified carbon market and setting suitable policy. In the national carbon trading market, the variations of different abatement cost are the precondition of carbon exchange. This paper set forth theories related to carbon market and used parametric directional distance function model to derive the shadow prices of 30 provinces from 2011 to 2017. Then the classic logarithmic model is used to simulate marginal abatement cost curves, which is further applied to empirically investigate the welfare of 30 provinces in two scenarios of carbon trading market in China. ResultsThe results indicate that marginal abatement cost would rise with the increasing of emission reduction and vary significantly among provinces, and undeveloped provinces have greater potential in emission reduction than developed regions. Moreover, all provinces could benefit from the establishment of the nationwide ETS.ConclusionsThis article combines the theoretical model of shadow prices with the analysis of China’s carbon trading market in an attempt to analyze the cost and welfare of Chinese provinces and cities on the unified carbon trading market, adding the time trend factor to the directional distance function, and then further combines the parameter method to estimate the shadow price of CO2. Finally, the paper gives some proposals regarding to China’s ETS and carbon reduction targets.

scholarly journals The Impact of Retailers’ Low-Carbon Investment on the Supply Chain under Carbon Tax and Carbon Trading Policies

2020 ◽  
Vol 12 (9) ◽  
pp. 3597
Author(s):  
Fei Zou ◽  
Yanju Zhou ◽  
Caihua Yuan
Keyword(s):  
Supply Chain ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Carbon Tax ◽  
Carbon Trading ◽  
Low Carbon ◽  
Emission Permits ◽  
Cost Coefficient ◽  
The Impact ◽  
Reduction Cost

In the current low-carbon economy, the government has adopted carbon taxes and carbon trading policies to control the carbon emissions of manufacturers. As consumers become increasingly aware of low-carbon, some retailers have also started investing in low-carbon to shape their public image and increase their competitiveness to attract more customers. In this paper, the Stackelberg game method is utilized to solve the model, and the graphs are used to analyze the benefits of retailers' low-carbon investment on the supply chain through numerical analysis. It is found that when the emission reduction cost coefficient of manufacturers is relatively low, manufacturers are willing to reduce carbon emissions. At this time, increasing carbon tax and the carbon emission permits price can effectively promote the emission reduction behavior of manufacturers, because it increases demand for products and the profit of manufacturers and retailers. However, when the emission reduction cost coefficient of the manufacturers is quite high, increasing carbon tax and carbon emission permits price cannot effectively promote the emission reduction behavior, because this situation of the emission reduction reduces the profit of manufacturers. The main contribution of this paper discovers that the green cost coefficient of retailers' low-carbon investment will adjust the impact of the carbon tax and the carbon trading price on the profits of retailers and manufacturers which proves that retailers’ low-carbon investment is beneficial to the supply chain. When the emission reduction cost coefficient is high and the green cost coefficient is low, increasing the carbon tax or carbon emission permits price can increase the profit of manufacturers and retailers. Finally, we design a supply chain coordination of comprehensive sharing contact for retailers and manufacturers. The result shows that this contract has economic and environmental benefits, and that it is beneficial for the environment and economy of sustainable development.

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 Enterprise Production and Emission Reduction Strategy under Carbon Emission Constraint

2021 ◽  
Vol 2021 ◽  
pp. 1-13
Author(s):  
Simin Zhang ◽  
Qi Li
Keyword(s):  
Carbon Emissions ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Negative Impact ◽  
Policy Formulation ◽  
Main Concern ◽  
Carbon Trading ◽  
Trading System ◽  
Reduction Strategy ◽  
The Government

According to China’s 14th Five-Year Development Plan, China aims to peak its carbon emissions by 2030 and achieve carbon neutral by 2060, which will be a major strategy for China to implement in the coming period of time. All kinds of industries need to take the industry characteristics into account and gradually form relative carbon reduction targets according to the National Carbon Summit Action Program. Under the constraints of carbon emission reduction, enterprises face trade-off when making emission reduction decisions. How to systematically optimize the profitable and environmentally friendly decisions, under the consideration of carbon emission production, is gradually becoming a main concern of regulated enterprises. In this paper, a Cournot game model is constructed to explore optimal production carbon abatement decisions for two oligopolistic firms, under the governance of a cap-and-trade mechanism. Real case data collected from China’s airlines is an example to test the validity of our model. The qualitative analysis shows that, through a reasonable output and emission reduction investment, companies are capable of efficiently minimizing the negative impact brought about by the carbon trading system. A numerical experiment indicates that the companies on one side can reach a decision equilibrium in some circumstances, but on the other side, there exists a lack of incentive to reduce their emissions. Additional government incentives or increased investment in technological improvements will be needed to encourage companies to further reduce carbon emissions. In this paper, while analyzing the choice of emission reduction strategy for enterprises under the carbon trading system, it also provides effective emission reduction approaches for the government and industry managers, hoping to provide some references for the establishment of emission reduction system and policy formulation.

scholarly journals Regional-Level Allocation of CO2 Emission Permits in China: Evidence from the Boltzmann Distribution Method

2018 ◽  
Vol 10 (8) ◽  
pp. 2612 ◽  
Author(s):  
Yanbin Li ◽  
Zhen Li ◽  
Min Wu ◽  
Feng Zhang ◽  
Gejirifu De
Keyword(s):  
Carbon Emissions ◽  
Emission Reduction ◽  
Co2 Emission ◽  
Carbon Emission ◽  
Boltzmann Distribution ◽  
Distribution Model ◽  
Emission Permits ◽  
Distribution Method ◽  
Carbon Emission Reduction ◽  
Per Capita

To achieve the commitment of carbon emission reduction in 2030 at the climate conference in Paris, it is an important task for China to decompose the carbon emission target among regions. In this paper, entropy maximization is brought to inter-provincial carbon emissions allocation via the Boltzmann distribution method, which provides guidelines for allocating carbon emissions permits among provinces. The research is mainly divided into three parts: (1) We develop the CO2 influence factor, including per capita GDP, per capita carbon emissions, carbon emission intensity and carbon emissions of per unit industrial added value; the proportion of the second industry; and the urbanization rate, to optimize the Boltzmann distribution model. (2) The probability of carbon emission reduction allocation in each province was calculated by the Boltzmann distribution model, and then the absolute emission reduction target was allocated among different provinces. (3) Comparing the distribution results with the actual carbon emission data in 2015, we then put forward the targeted development strategies for different provinces. Finally, suggestions were provided for CO2 emission permits allocation to optimize the national carbon emissions trading market in China.

scholarly journals City-Level Carbon Emission Abatement in the Subtropics of China: Evaluation and Reallocation for Zhejiang

2019 ◽  
Vol 12 ◽  
pp. 194008291986427 ◽  
Author(s):  
Dan Hu ◽  
Yunfei Fang ◽  
Chenpeng Feng ◽  
Junheng Cheng
Keyword(s):  
Emission Reduction ◽  
Carbon Emission ◽  
Zhejiang Province ◽  
Carbon Intensity ◽  
Data Envelopment ◽  
Carbon Trading ◽  
Gross Domestic Product Growth ◽  
Emission Abatement ◽  
Trading Market ◽  
Policy Suggestions

Zhejiang province, one of the classic subtropical regions in China, has promoted the establishment of a carbon trading market in recent years. The appropriate allocation of carbon emission abatement (CEA) quotas is the precondition for constructing a carbon trading market. This article mainly allocates municipal CEA quotas in Zhejiang province during the 12th Five-Year period based on data envelopment analysis approach. The main results reveal that Zhejiang exhibits relatively high environmental efficiency; carbon emission reduction in moderate level would bring gross domestic product growth for certain cities; the actual CEA quotas allocation of Zhejiang during 12th Five-Year period could be further optimized under the precondition of the national requirement of carbon intensity. Possible policy suggestions are provided in terms of the results.

scholarly journals The Study of the Impact of Carbon Finance Effect on Carbon Emissions in Beijing-Tianjin-Hebei Region—Based on Logarithmic Mean Divisia Index Decomposition Analysis

2019 ◽  
Vol 11 (5) ◽  
pp. 1465 ◽  
Author(s):  
Li Li ◽  
Di Liu ◽  
Jian Hou ◽  
Dandan Xu ◽  
Wenbo Chao
Keyword(s):  
Global Warming ◽  
Carbon Emissions ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Total Carbon ◽  
Carbon Trading ◽  
Logarithmic Mean ◽  
Carbon Emission Reduction ◽  
Carbon Finance ◽  
The Impact

The negative effects of global warming are becoming more and more serious. The fundamental way to prevent global warming is by reducing carbon dioxide emissions. Achieving this has become a key concern for all countries. The logarithmic mean divisia index model was constructed to decompose the total carbon emission increment. Carbon finance effect was divided into green credit effect and carbon trading effect to analyze the impact of carbon finance on carbon emissions. The results showed that the total carbon emission reduction value caused by green credit effect from 2010 to 2016 in the Beijing-Tianjin-Hebei region was 66193.96 million tons, and the added value of carbon emission caused by carbon trading effect was 80266.68 million tons. There are regional differences in the effects of carbon finance on carbon emissions in these regions. It can be concluded that to a certain extent, green credit can reduce carbon emissions, and carbon trading can increase carbon emissions. Using the gradual expansion of carbon finance trading and market mechanism of carbon finance to solve the problem of carbon emission can improve the efficiency of carbon emission reduction.

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