Relationship Between Emissions Trading System and the 2030 Agenda for Sustainable Development

With the Paris Agreement and through Nationally Determined Contributions, nation-states have agreed to reduce their emissions of greenhouse gases. Some of them have approached this aspect by setting emission trading systems. In some cases, it is in the regional and sub-national levels where these types of developments are taking place. The relevance of this market-based instrument is increasing over time, to the point of being regarded as a cornerstone of climate change mitigation strategies, despite the lack of global agreement on the matter. The importance of emission trading systems, however, can be observed when assessing their relevance for achieving the 2030 Agenda for Sustainable Development. Implementing them can, and should, assist in reaching diverse targets of different Sustainable Development Goals. This is the case of the goals related to energy, economic growth, inclusive industrialization, sustainable cities, sustainable production and consumption patterns, marine and land life, as well as the climate itself. Then, the relevance of emission trading systems can be observed throughout the whole 2030 Agenda. It is thus in this context that this contribution aims to assess the manner in which this relationship takes place in the global fora and in Mexico. A key argument is that there should be the participation of a wider set of sectors and actors.

Non-additionality, Overestimation of Supply, and Double Counting in Offset Programs: Insight for the Mexican Carbon Market

Mexico utilizes an emissions trading system as one of its carbon pricing instruments. Mexico’s planning, like that of other countries, includes flexible mechanisms such as offsets. Offsets allow market participants to compensate for their emissions through mitigation projects. Offsetting via participation in the Clean Development Mechanism and Joint Implementation was fundamental to the Kyoto Protocol. In contrast, the Paris Agreement is ambiguous about its use. Other national or regional offset programs, such as the EU, Australia, New Zealand, Japan, or Korea, work within emission trading systems. Subnationally, the California-Quebec program has been in effect since 2014. As Greenhouse Gases (GHGs) are global, offsetting allows market participants to compensate for their emissions through mitigation projects, whether domestically or abroad. Given their global scope, such programs present a wide variability in quality. This chapter presents an overview of offset programs worldwide and argues that non-additionality, overestimated supply, and double counting are their three most pressing quality problems. This analysis sheds light upon the nascent Mexican system and its offset program.

The Environmental Justice Dimension of the Mexican Emissions Trading System

Emissions trading systems have the potential of increasing air quality given that GHG emissions are often co-produced with local pollutants such as NOx, SOx, and Particulate Matter (PM). Can emissions trading systems exacerbate or alleviate environmental justice concerns in emerging economies? According to the U.S. Environmental Protection Agency, Environmental Justice is achieved when no group is disproportionately affected by an environmental policy or phenomenon. The main objective of this chapter is to estimate the pollution burden faced by marginalized neighbourhoods in Mexico. This is relevant for Mexico given the beginning of the pilot program of the Mexican Emissions Trading System (ETS) and the country’s history of income inequality and poverty. Using linear regression and two-way fixed effects methods, we found that the highest emitters regulated under the ETS are located near poor populations. We estimated a 5$$\%$$ % CO2 emissions-reduction scenario corresponding to national targets and associated NO2 emissions to that scenario. We find that this scenario is consistent with a decrease in the exposure of NO2 pollution for the most marginalized neighbourhoods. This chapter also discusses other potential sources of environmental injustice that could result after the beginning of the ETS and the potential to address them.

The case against alternative currencies

Local Currencies, Local Exchange Trading Systems, and Time Banks are all part of a new social movement that aims to restrict money's purchasing power within a certain geographic area, or within a certain community. According to their proponents, these restrictions may contribute to building sustainable local economies, supporting local businesses and creating “warmer” social relations. This article inquires whether the overall enthusiasm that surrounds alternative currencies is justified. It argues that the potential benefits of these currencies are not sufficient to justify the restrictions they impose on money's purchasing power. Turning these currencies into effective channels of change, by increasing their scope and their strength, could severely hinder the pursuit of social justice, in a way that is probably not even necessary for achieving their objectives. The paper concludes that large-scale limitations of money's purchasing power are, therefore, undesirable.

Carbon Taxes Implementation Policies: Global and European Dimensions

The objective of the research is to analyze the present framework of available carbon taxes worldwide as one of the contemporary methods for cost engineering of carbon dioxide emission. For the achievement of this objective two basic research tasks have been fulfilled: 1) the essence and framework of and the effects stemming from the application of the basic carbon dioxide pricing approaches (the Emissions Trading Systems, Carbon Taxes, Offset Mechanisms, Results Based Climate Finance and Internal Pricing of the carbon emissions) have been presented; and 2) the European Union dimension of the application of a new carbon tax has been discussed within the context of the Carbon border adjustment mechanism (the carbon border tax) of the European union. The research methods that have been used are comparative analysis, content analysis, elements of the retrospective analysis and generalizations of the ideas of main analytical documents in this field. The results of the research are generalizations and analyses providing solid ground for taking evidence-based decisions regarding future carbon taxes introduction at national and EU level as well as for addressing motivated recommendations towards the application of this type of taxes.

Bayesian Online Change Point Detection in Finance

It is quite common that the structure of a time series changes abruptly. Identifying these change points and describing the model structure in the segments between these change points is an important task in financial time series analysis. Change point detection is the identification of abrupt changes in the generative parameters of sequential data. In application areas such as finance, online rather than offline detection of change points in time series is mostly required, due to their use in predictive tasks, possibly embedded in automatic trading systems. However, the complex structure of the data generation processes makes this a challenging endeavor. This paper is concerned with online change point detection in financial time series using the Bayesian setting. To this end, the Bayesian posterior probability of change at a specific time is proposed and some procedures are presented for selecting the priors and estimation of parameters. Applications in simulated financial time series are given. Finally, conclusions are proposed.

Impact of the Electronic Trading on the Stock Prices of Jordanian Listed Companies

The development of economies has been significantly hampered by inadequate financing. The introduction of securities exchanges is considered as a key strategy for improving access to financing for organizations. The introduction of electronic trading systems in these markets is meant to enable them take advantage of technology and improve access to financing for listed companies. However, the system may have the adverse effect of increasing the level of stock price volatility. A quantitative study using data collected from the ASE is undertaken here. The increase in price volatility for the industrial stocks in the ASE was not statistically significant. The mean returns for the shares were similar in the period before and after the introduction of the system. The findings indicate that the electronic system increases the level of transparency in the market and improvement in efficiency is not accompanied by a change in the price volatility. It was expected that the change in market liquidity and portfolio flows would influence price changes in the market. This was not the case and it may be an indication that the level of returns in the market did not significantly increase.The market returns for the stocks of industrial listed companies are calculated. Using independent samples tests, the returns are evaluated for a period of 5 years before and after the introduction of the system.

Rural development in Papua: lesson learned from cocoa farming

This paper convey a reflection on the economic activities of the chocolate farming community in Berab, Papua and its relationship with the international market, namely in Japan through the Kakao Kita business organization in Jayapura. The ethnographic methods was used to collect the data, in-depth interviews, participant observation, and visual ethnography are conducted during June 2020 – January 2021.The crucial finding from this research is that the trading systems that are built are both based on humanism and community principles. Both buyers from Japan and the farming community built social relations which then abandoned the impression that trade, especially on an international scale, was all about profit and loss. There is a positive intersubjectivity between the two of them, shown by a sense of togetherness in the importance of maintaining this relationship, as well as the relationship to nature shown by organic cocoa plantation management and transparent and humanist trading mechanisms. Furthermore, the challenge that arises and need to reflect on is whether a similar scheme model can be replicated to other communities in Papua. It is recommended to the Papuan local government to take a closer look at the policy implementation process, especially from special autonomy for the economic empowerment of local communities.

GENERALIZED CHARACTERISTICS TYPES OF EXCHANGE TRADING STRATEGIES

It has been determined that online trading is associated with a significant degree of risk, which can be reduced through a thorough and systematic approach to the choice of exchange trading strategies. The strategy (system) of exchange trading is a personal trading rules that take into account the market situation, knowledge and understanding of the trader of this situation, as well as the trader’s wishes regarding the profitability of trading, taking into account the risks. Trading systems based on technical analysis of stock charts are considered: trend (based on the assumption that the price will rise or fall according to market trends), flat (assumes that prices change within a corridor that has clearly defined borders, supported by levels of resistance or support), counter-trend (involves determining the turning point of the price movement), trading on forex patterns (involves determining the figures of graphical analysis of stock charts, resulting in, according to statistics, there is a high probability predict price movements), wave analysis (assumes that market behavior depends on the psychology of participants, which is expressed in the impulsiveness of behavior), breakthrough volatility (assumes that a significant event is the actual exit of the price from the established channel, creating opportunities for trends), session trade (involves work in the market within a specific trade session), trading at Fibonacci levels (assumes that the price should create adjustments to the trend, reflecting the special levels, which are based on the numerical sequence of Fibonacci), scalping (provides trading within the trading day and is characterized by small levels of take profits and relatively large levels of stop-losses) and universal (provide a different combination of the above systems depending on the preferences and experience of the trader). It is concluded that all types of trading systems can be profitable, but first of all it all depends on the knowledge and skills of the person who carries out trading operations.