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 Use of BP Neural Networks to Determine China’s Regional CO2 Emission Quota

Complexity ◽  
2021 ◽  
Vol 2021 ◽  
pp. 1-14
Author(s):  
Yawei Qi ◽  
Wenxiang Peng ◽  
Ran Yan ◽  
Guangping Rao
Keyword(s):  
Co2 Emissions ◽  
Co2 Emission ◽  
Carbon Emission ◽  
Emission Trading ◽  
Benchmark Model ◽  
Emission Quota ◽  
Quota Allocation ◽  
Carbon Emission Trading ◽  
Feature System ◽  
Trading Policy

China declared a long-term commitment at the United Nations General Assembly (UNGA) in 2020 to reduce CO2 emissions. This announcement has been described by Reuters as “the most important climate change commitment in years.” The allocation of China’s provincial CO2 emission quotas (hereafter referred to as quotas) is crucial for building a unified national carbon market, which is an important policy tool necessary to achieve carbon emissions reduction. In the present research, we used historical quota data of China’s carbon emission trading policy pilot areas from 2014 to 2017 to identify alternative features of corporate CO2 emissions and build a backpropagation neural network model (BP) to train the benchmark model. Later, we used the model to calculate the quotas for other regions, provided they implement the carbon emission trading policy. Finally, we added up the quotas to obtain the total national quota. Additionally, considering the perspective of carbon emission terminal, a new characteristic system of quota allocation was proposed in order to retrain BP including the following three aspects: enterprise production, household consumption, and regional environment. The results of the benchmark model and the new models were compared. This feature system not only builds a reasonable quota-related indicator framework but also perfectly matches China’s existing “bottom-up” total control quota approach. Compared with the previous literature, the present report proposes a quota allocation feature system closer to China’s policy and trains BP to obtain reasonable feature weights. The model is very important for the establishment of a unified national carbon emission trading market and the determination of regional quotas in China.

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.

scholarly journals Does the Carbon Emission Trading Policy Promote Foreign Direct Investment?: A Quasi-Experiment From China

2022 ◽  
Vol 9 ◽  
Author(s):  
Wei Shao ◽  
Xiaobo Yu ◽  
Ziqi Chen
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Environmental Regulation ◽  
Direct Investment ◽  
Carbon Emission ◽  
Emission Trading ◽  
Depth Analysis ◽  
Carbon Emission Trading ◽  
The Impact ◽  
Trading Policy

As an important policy to promote global energy transition and carbon emission reduction, does the carbon emission trading policy help promote foreign direct investment inflows, thus alleviating the contradiction between environment and economic development? Based on the “OLI paradigm,” by using the data of China’s 30 provinces from 2007 to 2016 and taking China’s pilot implementation carbon emission transaction policy in 2013 as the natural experiment, so as to construct a differences-in-differences model, this study empirically analyzed the impact of carbon emission transaction policies on foreign direct investment and conducted an in-depth analysis and discussion on related heterogeneity. The empirical results show that 1) there is a positive correlation between the carbon emission trading policy and foreign direct investment; 2) the results of heterogeneity analysis show that the effect of carbon emission trading policy on the increase in FDI is more significant in the areas with a stronger environmental regulation, a higher degree of marketization, and low energy consumption. The conclusions of this study enrich the analysis of the effectiveness of government environmental policies from the perspective of both environment and economic development and provide relevant policy enlightenment for developing countries in environmental regulation and attracting foreign direct investment.Systematic Review Registration: [website], identifier [registration number].

scholarly journals The Stimulation and Coordination Mechanisms of the Carbon Emission Trading Market of Public Buildings in China

2021 ◽  
Vol 9 ◽  
Author(s):  
Lingyan Li ◽  
Mimi Duan ◽  
Xiaotong Guo ◽  
Yao Wang
Keyword(s):  
Decision Making ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Emission Trading ◽  
Public Buildings ◽  
Public Building ◽  
Trading Mechanism ◽  
Carbon Emission Trading ◽  
Decision Making Behavior ◽  
The Impact

The most important issue related to the establishment of carbon emission trading in China is how to motivate the owners of public buildings to participate. However, Existing research few considered the characteristics of public building owners and the influence of various uncertain factors in carbon emission trading investments. To fill this gap, this study constructs a carbon emission trading investment decision model of public building owners to study the mechanism that encourages them to participate, incorporating these characteristics and uncertain factors. The findings are as follows. First, carbon price is important in adjusting the emission reductions of different owners to minimize the total social cost of emission-reduction measures. Second, the price of carbon-emission permits has a significant impact on the investment threshold and decision-making behavior of public building owners. Finally, reducing the cost of energy-conservation and emission-reduction technologies in public buildings and appropriately subsidizing owners for their emission-reduction investment were effective methods to motivate them to participate in carbon emission trading. The results were used to quantitatively analyze the impact of a carbon emission trading mechanism on the decision-making behavior of public building owners and to construct the carbon emission trading mechanism used in China’s public building industry.

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

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