scholarly journals Adopt or Innovate: Understanding Technological Responses to Cap-and-Trade

2020 ◽  
Vol 12 (3) ◽  
pp. 170-201
Author(s):  
Raphael Calel
Keyword(s):  
Carbon Emissions ◽  
Pollution Control ◽  
Carbon Market ◽  
Carbon Intensity ◽  
Carbon Markets ◽  
Low Carbon ◽  
Cap And Trade ◽  
Short Term ◽  
Regulated Firms ◽  
Control Technologies

One important motivation for creating cap-and-trade programs for carbon emissions is the expectation that they will stimulate much-needed low-carbon innovation. I construct a new panel of British firms to investigate this hypothesis, finding that the European carbon market has encouraged greater low-carbon patenting and R&D spending among regulated firms without necessarily driving short-term reductions in carbon intensity of output. This stands in contrast to past cap-and-trade programs, which have primarily spurred adoption of existing pollution control technologies, with little effect on innovation. I discuss how to reconcile these contrasting findings and implications for the future of carbon markets. (JEL D22, O32, O34, Q52, Q54, Q58)

scholarly journals Achieve a low carbon supply chain through product mix

2017 ◽  
Vol 117 (10) ◽  
pp. 2468-2484 ◽  
Author(s):  
Xu Chen ◽  
Xiaojun Wang
Keyword(s):  
Supply Chain ◽  
Trade Policy ◽  
Carbon Emissions ◽  
Channel Structure ◽  
Low Carbon ◽  
Cap And Trade ◽  
Product Mix ◽  
Content Type ◽  
Carbon Supply ◽  
Trade Offs

Purpose In the era of climate change, industrial organizations are under increasing pressure from consumers and regulators to reduce greenhouse gas emissions. The purpose of this paper is to examine the effectiveness of product mix as a strategy to deliver the low carbon supply chain under the cap-and-trade policy. Design/methodology/approach The authors incorporate the cap-and-trade policy into the green product mix decision models by using game-theoretic approach and compare these decisions in a decentralized model and a centralized model, respectively. The research explores potential behavioral changes under the cap-and-trade in the context of a two-echelon supply chain. Findings The analysis results show that the channel structure has significant impact on both economic and environmental performances. An integrated supply chain generates more profits. In contrast, a decentralized supply chain has lower carbon emissions. The cap-and-trade policy makes a different impact on the economic and environmental performances of the supply chain. Balancing the trade-offs is critical to ensure the long-term sustainability. Originality/value The research offers many interesting observations with respect to the effect of product mix strategy on operational decisions and the trade-offs between costs and carbon emissions under the cap-and-trade policy. The insights derived from the analysis not only help firms to make important operational and strategic decisions to reduce carbon emissions while maintaining their economic competitiveness, but also make meaningful contribution to governments’ policy making for carbon emissions control.

scholarly journals PRICING CARBON EMISSIONS IN CHINA

2018 ◽  
Vol 13 (03) ◽  
pp. 1850014
Author(s):  
CHIA-LIN CHANG ◽  
TE-KE MAI ◽  
MICHAEL MCALEER
Keyword(s):  
Carbon Emissions ◽  
National Development ◽  
Clean Energy ◽  
Northern China ◽  
Carbon Market ◽  
Energy Structure ◽  
Carbon Markets ◽  
Hydroelectric Power ◽  
Coal Consumption ◽  
Regional Markets

The review paper provides a strategy for determining carbon emissions pricing in China to guide how carbon emissions might be mitigated to reduce fossil fuel pollution. China has promoted the development of clean energy, including hydroelectric power, wind power, and solar energy generation. In order to involve companies in carbon emissions control, regional and provincial carbon markets have been established since 2013. As China’s carbon market is organized domestically, and not necessarily using market principles, there has been little research on China’s carbon price and volatility. This paper provides an introduction to China’s regional and provincial carbon markets, proposes how to establish a national market for pricing carbon emissions, discusses how and when these markets might be established, how they might perform, and the subsequent prices for China’s regional and national carbon markets. Power generation in manufacturing consumes more than other industries, with more than 40% of total coal consumption. Apart from manufacturing, the northern China heating system relies on fossil fuels, mainly coal, which causes serious pollution. In order to understand the regional markets well, it is necessary to analyze the energy structure in these regions. Coal is the primary energy source in China, so that provinces that rely heavily on coal receive a greater number of carbon emissions permits. In order to establish a national carbon market for China, a detailed analysis of eight important regional markets is presented. The four largest energy markets, namely, Guangdong, Shanghai, Shenzhen, and Hubei, traded around 82% of the total volume and 85% of the total value of the seven markets in 2017, as the industry structure of the western area is different from that of the east. The China National Development and Reform Commission has proposed a national carbon market, which can attract investors and companies to participate in carbon emissions trading.

scholarly journals Measuring Carbon Market Transaction Efficiency in the Power Industry: An Entropy-Weighted TOPSIS Approach

Entropy ◽  
2020 ◽  
Vol 22 (9) ◽  
pp. 973
Author(s):  
Jin Zhu ◽  
Huaping Sun ◽  
Nanying Liu ◽  
Dequn Zhou ◽  
Farhad Taghizadeh-Hesary
Keyword(s):  
Trading Volume ◽  
Power Industry ◽  
Carbon Market ◽  
Carbon Markets ◽  
Low Carbon ◽  
Transaction Efficiency ◽  
Order Preference ◽  
Market Transaction ◽  
Topsis Approach ◽  
Entropy Weighted

Carbon emission control is an urgent environmental issue that governments are paying increasing attention to. Improving carbon market transaction efficiency in the context of China’s power industry is important for green growth, low carbon transmission, and the realization of sustainable development goals. We used the entropy-weighted Technique for Order Preference by Similarity to an Ideal Solution (TOPSIS) method in this empirical study to analyze the carbon market transaction efficiency of China’s power industry. The results showed that the Beijing carbon market has the highest transaction efficiency, followed by those of Guangdong Province and Shenzhen City. Hubei Province also has a relatively high carbon market transaction volume and turnover; its transaction efficiency ranks fourth. Shanghai, Tianjin, and Chongqing are the lowest-ranked regions, having carbon markets with relatively low trading volume and turnover. We, therefore, recommend that to develop a unified national carbon market, governmental agencies at all levels should equitably allocate carbon; strict regulations and penalties are also needed.

scholarly journals Moving Steadily or Great Leap Forward? The Emerging Carbon Market in China

2013 ◽  
Vol 18 (2) ◽  
pp. 233 ◽  
Author(s):  
Ying Shen
Keyword(s):  
Carbon Emissions ◽  
Emissions Trading ◽  
Ghg Emissions ◽  
Policy Instrument ◽  
Carbon Market ◽  
Chinese Government ◽  
Carbon Markets ◽  
Emissions Trading Scheme ◽  
Trading Scheme ◽  
Environmental Policy Instrument

China has become a large greenhouse gas (‘GHG’) emissions source due to its rapid industrialisation and urbanisation. Given the heavy environmental footprint caused by China’s economic growth, the Chinese government has recognised the need to control carbon emissions and mitigate climate change. Indeed, China has made remarkable progress in reducing its energy consumption per unit of gross domestic product (‘GDP’). However, these improvements are mainly the result of the most readily available abatement options. Given that simple solutions have almost been exhausted, cost-effective market-based instruments such as carbon emissions trading and carbon markets have become the focus of the Chinese leadership’s attention and have begun to emerge and develop in China. At this stage the primary issue that must be considered by the Chinese government is how to implement an emissions trading scheme (‘ETS’) — whether to adopt such a new environmental policy instrument step by step in an evolutionary manner or whether to fully implement it instantly in a revolutionary way. This article considers the future direction of an emerging carbon market in China. It first provides a comprehensive and up-to-date review of current pilot ETS programs in China. Based on the review of these programs, China’s pilot ETS programs and the well-established European Union Emissions Trading Scheme (‘EU ETS’) are compared. The improvements made by, and the shortcomings of, these pilot programs (which could be considered by the Chinese government in choosing an appropriate development model of the ETS in the near future) are summarised. The article concludes by assessing the prospects of an ETS in China.

scholarly journals Towards net-zero carbon performance: using demand side management and a low carbon grid to reduce operational carbon emissions in a UK public office

2021 ◽  
Vol 2069 (1) ◽  
pp. 012150
Author(s):  
E Burman ◽  
N Jain ◽  
M de-Borja-Torrejón
Keyword(s):  
Carbon Emissions ◽  
Demand Side Management ◽  
Carbon Intensity ◽  
Grid Integration ◽  
Demand Side ◽  
Low Carbon ◽  
Electricity Grid ◽  
Integration Strategy ◽  
Carbon Performance ◽  
And Control

Abstract This paper investigates the performance of an office building that has achieved a low carbon performance in practice thanks to a performance contract and Soft Landings approach. The findings show the potential of this building for further de-carbonisation as a result of electrification of heating and load shifting to take advantage of a low carbon electricity grid. Whilst retrospective modelling based on the past carbon intensity data shows the effectiveness of demand-side management, assessment of the existing smart readiness of the building revealed that the building services and control strategy are not fully equipped with the data analytics and carbon or price signal responsiveness required to facilitate grid integration. The environmental strategy and procurement method used for this building combined with an effective grid integration strategy can serve as a prototype for low carbon design to achieve the ever stringent carbon emissions objectives set out for the non-domestic buildings.

Calculation and Evaluation Methodology of Transport Energy Consumption and Carbon Emissions: A Case Study of Jiangsu Province

2014 ◽  
Vol 962-965 ◽  
pp. 1293-1302 ◽  
Author(s):  
Bin Ouyang ◽  
Zhen Hua Feng ◽  
Qing Hua Bi
Keyword(s):  
Energy Consumption ◽  
Carbon Emissions ◽  
Energy Intensity ◽  
Jiangsu Province ◽  
Policy Implications ◽  
System Structure ◽  
Evaluation Methodology ◽  
Carbon Intensity ◽  
Low Carbon ◽  
Carbon Transport

The calculation methodology of transport carbon emissions, based on the methodology recommended by Intergovernmental Panel on Climate Change (IPCC) and the energy consumption statistics of provincial transport industry in China, is proposed. By using the methodology, the energy consumption and carbon emissions of highway, waterway and urban passenger transport from 2005 to 2012 of Jiangsu Province are calculated and evaluated. And the developing trends and main features from the perspectives of the total amount of transport energy consumption and carbon emissions, the proportional of both various energy types and various transport modes in the energy consumption, the energy intensity and carbon dioxide intensity, are systematically analyzed. Finally, some policy implications of low-carbon transport development were conclusively put forward, including reducing energy intensity and carbon intensity as the core focus, the highway transport as the breakthrough point, optimizing the integrated transport system structure and developing of public transport in priority as the strategic orientation, developing clean and low-carbon energy as an important way, etc. The research methodology and results can provide references for decision-making and management of the relevant provinces and cities on low-carbon transport development.

Analysis on Determining Factors of Regional Construction Land Carbon Emissions

2014 ◽  
Vol 587-589 ◽  
pp. 3-6
Author(s):  
Na Lu ◽  
Yong Sun
Keyword(s):  
Energy Efficiency ◽  
Carbon Emissions ◽  
Industrial Structure ◽  
Guizhou Province ◽  
Carbon Intensity ◽  
Low Carbon ◽  
Local Conditions ◽  
Intensity Effect ◽  
Construction Land ◽  
Industrial Carbon

It's important to discuss how to reduce construction land carbon emissions which is helpful for realizing low-carbon and efficient utilization of land. First, this paper chose three representative regions on construction land carbon intensity, namely Beijing, Hubei province and Guizhou province; second, based on LMDI method, it analyzed the contribution of different industrial carbon intensity effect and industrial structure effect to construction land carbon intensity in different regions between 2002 and 2008, the results show proposing the second industrials energy efficiency (65.11%) was crucial for Beijing, different industries's energy efficiency (110.5%) was important for Hubei, energy efficiency and industrial structure optimizing were crucial equally for Guizhou; finally it proposed different regions should find carbon reduction ways to local conditions.

scholarly journals Greenhouse Gas Reductions under Low Carbon Fuel Standards?

2009 ◽  
Vol 1 (1) ◽  
pp. 106-146 ◽  
Author(s):  
Stephen P Holland ◽  
Jonathan E Hughes ◽  
Christopher R Knittel
Keyword(s):  
Greenhouse Gas ◽  
Carbon Emissions ◽  
Cost Effective ◽  
Carbon Intensity ◽  
Energy Prices ◽  
Low Carbon ◽  
High Carbon ◽  
Fuel Production ◽  
Abatement Costs ◽  
Effective Policy

A low carbon fuel standard (LCFS) seeks to reduce greenhouse gas emissions by limiting the carbon intensity of fuels. We show this decreases high carbon fuel production but increases low carbon fuel production, possibly increasing net carbon emissions. The LCFS cannot be efficient, and the best LCFS may be nonbinding. We simulate a national LCFS on gasoline and ethanol. For a broad parameter range, emissions decrease, energy prices increase, abatement costs are large ($80–$760 billion annually), and average abatement costs are large ($307–$2,272 per CO2 metric ton). A cost effective policy has much lower average abatement costs ($60–$868). (JEL Q54, Q58)

Society and a low-carbon future: individual behaviour change or new social values and priorities?

2012 ◽  
Vol 103 (2) ◽  
pp. 157-163 ◽  
Author(s):  
Janette Webb
Keyword(s):  
Climate Change ◽  
Cultural Values ◽  
Carbon Emissions ◽  
Social Life ◽  
Common Good ◽  
Social Systems ◽  
Shared Understanding ◽  
Gradual Change ◽  
Low Carbon ◽  
Short Term

ABSTRACTAlthough Scottish and UK governments have ambitious targets for climate change mitigation, and there is increased understanding of the risks to future prosperity of fossil fuel energy dependence, limited practical progress has been made by the advanced economies in reducing carbon emissions, especially when embedded emissions in imported consumer goods are taken into account. Significant contributory factors are the social and cultural values, beliefs and practices, which result in risks of climate change being regarded as secondary to short-term pressures for economic growth and increased consumer spending. The result is that climate change and transition to a low-carbon society become ‘back of the mind’ issues. Current policy designed to lower carbon emissions from household consumption treats society as a series of individuals, each responding rationally to market incentives to maximise short-term personal gain. ‘Greener choices’ are incentivised and encouraged by social marketing, but, at best, this approach will achieve only very gradual change. An alternative model treats society as comprising historically evolving, dynamic social systems and cultures that are capable of dealing with transformational change, when there is a shared understanding of the reasons for acting. From this perspective, society can implement step changes in behaviour through collaborative action in the interests of the longer-term common good. Political momentum can be gathered for new legislative and/or taxation measures, as for example in the case of the strong programme for tobacco control legislation in Scotland and the UK. By focusing on social and technical infrastructures, the built environment, and the regeneration of local economies, rather than on individual behaviours, government investment can have far greater impact. A distinctively Scottish narrative for a low-carbon society can create momentum for transition through shared understanding of the risks of climate change, and its meanings for social life, cultures, economic relationships and values.

scholarly journals Low-carbon Innovation, Economic Growth and CO2 Emission: Evidence from a Dynamic Spatial Panel Approach in China

2021 ◽  
Author(s):  
Caijiang Zhang ◽  
Yu Zhou ◽  
Zhangwen Li
Keyword(s):  
Carbon Emissions ◽  
Environmental Kuznets Curve ◽  
Kuznets Curve ◽  
Low Carbon ◽  
Ekc Hypothesis ◽  
Short Term ◽  
Spatial Panel ◽  
Central Regions ◽  
Dynamic Spatial Durbin Model

Abstract Low-carbon technology innovation plays an essential role in carbon emission reduction worldwide. This study investigates how low-carbon innovation affects carbon emissions by the Dynamic Spatial Durbin Model based on the panel data of 30 Chinses provinces from 2007 to 2017. The empirical results show that: Firstly, low-carbon innovation decreases carbon emissions from local and neighbor, the decreasing effects are significant mainly in the short term. Secondly, the results of the heterogeneity test indicate that the weakening effect of low-carbon innovation in central regions is consistent with the national results. The weakening effects are shown in long-term indirect and short-term direct in eastern regions. Thirdly, there is an inverted-U curve between economic development and carbon emissions, confirming the environmental Kuznets curve (EKC) hypothesis. However, the inflection point is insurmountable under the current level of technology in China. Finally, The results also show the “Pollution Paradise” effect.

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