scholarly journals Investment Decisions of Fired Power Plants on Carbon Utilization under the Imperfect Carbon Emission Trading Schemes in China

Processes ◽  
2019 ◽  
Vol 7 (11) ◽  
pp. 828 ◽  
Author(s):  
Weiwei Zhang ◽  
Linlin Liu
Keyword(s):  
Emission Reduction ◽  
Carbon Emission ◽  
Path Dependence ◽  
Emission Trading ◽  
Investment Decisions ◽  
Chinese Government ◽  
Carbon Trading ◽  
Carbon Utilization ◽  
Carbon Emission Trading ◽  
And Storage

Carbon capture, utilization, and storage (CCUS) is one of the most effective technologies to reduce CO2 emissions and has attracted wide attention all over the world. This paper proposes a real option model to analyze the investment decisions of a coal-fired power plant on CCUS technologies under imperfect carbon emission trading schemes in China. Considering multiple uncertainties, which include carbon trading price volatility, carbon utilization revenue fluctuation, and changes in carbon transport and storage cost, the least squares Monte Carlo simulation method is used to solve the problems of path dependence. The research results show that the independent effects of carbon trading mechanisms on investment stimulation and emission reduction are limited. The utilization ratio of captured CO2 has significant impacts on the net present value and investment value of the CCUS project. Moreover, the investment threshold is highly sensitive to the utilization proportion of food grade CO2 with high purity. It is suggested that the Chinese government should take diverse measures simultaneously, including increasing grants for research and development of carbon utilization technologies, introducing policies to motivate investments in CCUS projects, and also improving the carbon emission trading scheme, to ensure the achievement of the carbon emission reduction target in China.

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.

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

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 Carbon Emission Trading Scheme, Carbon Emissions Reduction and Spatial Spillover Effects: Quasi-Experimental Evidence From China

2022 ◽  
Vol 9 ◽  
Author(s):  
Zhaofu Yang ◽  
Yongna Yuan ◽  
Qingzhi Zhang
Keyword(s):  
Emission Reduction ◽  
Carbon Emission ◽  
Spillover Effect ◽  
Emission Trading ◽  
Coal Consumption ◽  
Difference In Differences ◽  
Spatial Spillover ◽  
Trading Scheme ◽  
Carbon Emission Trading ◽  
Spatial Spillover Effect

The carbon emission trading scheme (ETS) is an essential policy tool for accomplishing Chinese carbon targets. Based on the Chinese provincial panel data from 2003 to 2019, an empirical study is conducted to measure the effects of carbon emission reduction and spatial spillover effect by adopting the difference-in-differences (DID) model and spatial difference-in-differences (SDID) model. The research findings show that: 1) The ETS effectively reduced the total carbon emissions as well as emissions from coal consumption; 2) such effects come mainly from the reduction of coal consumption and the optimization of energy structure, rather than from technological innovation and optimization of industrial structure in the pilot regions; and 3) the ETS pilot regions have a positive spatial spillover effect on non-pilot regions, indicating the acceleration effect for carbon emission reduction. Geographic proximity makes the spillover effect decrease due to carbon leakage.

scholarly journals Impact and Acting Path of Carbon Emission Trading on Carbon Emission Intensity of Construction Land: Evidence from Pilot Areas in China

2020 ◽  
Vol 12 (19) ◽  
pp. 7843
Author(s):  
Lu Li ◽  
Jie Dong ◽  
Yan Song
Keyword(s):  
Energy Consumption ◽  
Carbon Emissions ◽  
Emission Intensity ◽  
Carbon Emission ◽  
Industrial Structure ◽  
Emission Trading ◽  
Carbon Trading ◽  
Construction Land ◽  
Trading Market ◽  
Carbon Emission Trading

Recently, the environmental and resource crisis caused by excessive energy consumption has aroused great concern worldwide. China is a major country of energy consumption and carbon emissions, and has attempted to build a carbon emission trading market to reduce carbon emissions. This practice helps to promote the carbon trading projects for both regional carbon emission reduction and sustainable development in the pilot areas, as well as having important theoretical and practical significance for the further improvement of carbon emission trading policies. In this study, we first used the difference-in-difference (DID) model to evaluate the impact of carbon emission trading on the carbon emission intensity of construction land (CEICL). The results showed that the carbon emission trading policy can significantly reduce CEICL in the pilot areas. Furthermore, we adopted the quantile regression model to explore the mechanism and acting path of carbon emission trading on CEICL. The results show that the increase in carbon trading volume (CTV) can effectively reduce the CEICL. However, a high carbon trading price (CTP) tends to reduce the suppressing effect of carbon emission trading on CEICL. Additionally, carbon emission trading also affects CEICL through the indirect acting paths of industrial structure and energy intensity. Finally, we propose to promote regional low-carbon development from the perspective of developing a carbon emission trading market nationwide, rationalizing the carbon quota and trading price mechanism, optimizing the regional industrial structure, and improving the energy consumption structure.

scholarly journals Research on Agility Development of Energy Enterprises under the Background of Carbon Emission Trading

2020 ◽  
Vol 194 ◽  
pp. 01010
Author(s):  
Erdong Zhao ◽  
Jianmin Chen ◽  
Chuxiang Chen ◽  
Mingsong Chen
Keyword(s):  
Greenhouse Gas ◽  
Corporate Culture ◽  
Carbon Emissions ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Emission Trading ◽  
Analysis Method ◽  
Carbon Emission Trading ◽  
Specific Degree ◽  
Positive Effect

In recent years, environmental problems caused by greenhouse gas emissions have attracted more and more attention. Under increasing cost pressure, energy enterprises have become one of the targets to control carbon emissions. Taking China Guodian Corporation as an example, it is of great significance to study the agility development of China’s energy enterprises under the carbon emission trading system.This paper uses content coding analysis method to explore the influencing factors of agility of energy-based enterprises in China and the specific degree of influence. Through research, it is found that corporate culture, leadership awareness and internal competition have a positive effect on the agility of energy-based enterprises. This study develops the relevant theories of energy-based enterprises from the perspective of agility and finds a key breakthrough for energy-based enterprises to cope with the pressure of carbon emission reduction and optimize their operations.

scholarly journals Factors Affecting China's Carbon Trading Price—A Case Study Based on Tianjin Carbon Emissions Trading Market

2021 ◽  
Author(s):  
Yuwei Du ◽  
Songsheng Chen
Keyword(s):  
Carbon Emissions ◽  
Industrial Development ◽  
Carbon Emission ◽  
Price Index ◽  
Stock Exchange ◽  
Emission Trading ◽  
Carbon Trading ◽  
Coal Price ◽  
Trading Market ◽  
Carbon Emission Trading

Abstract Building a carbon emission trading market is an effective way to control carbon emissions. The carbon emission trading price is the key to the carbon trading market, and it will affect the carbon emission reduction behavior of enterprises. This study use the vector autoregression (VAR) model, the cointegration analysis, and the Granger causality test to analyze the influence of industrial development index (Shanghai Stock Exchange Industrial Index (000004.SH)), coal price index (National Coal Price Index), air quality index (AQI), and economic index (Purchasing Managers Index (PMI)) on the carbon emission trading price in Tianjin. Empirical research results based on data from January 2014 to December 2019 show that the Shanghai Stock Exchange Industrial Index and AQI are positively correlated with Tianjin carbon emission trading price, and the National Coal Price Index and PMI are negatively correlated with Tianjin carbon emission trading price. Finally, some suggestions are made to promote the rapid maturity of the national carbon emission trading market of China.

Research on Carbon Emission Trading Mechanism Including Forest Carbon Sinks

2011 ◽  
Vol 347-353 ◽  
pp. 2967-2974
Author(s):  
Yun Cheng Xie ◽  
Teng Wei Shao
Keyword(s):  
Carbon Source ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Emission Trading ◽  
Economic Benefits ◽  
Forest Carbon ◽  
Carbon Sinks ◽  
Self Energy ◽  
Ecological Benefit ◽  
Carbon Emission Trading

With the strict emissions control of greenhouse gases, the carbon source enterprises have to make a choice among the self-energy conservation to reduce emission ,allocation of emission right among enterprises and the purchase of forest carbon sinks. To implant forest carbon sinks to the carbon emission trading system, the carbon source enterprises with higher cost of emission reduction can undertake their corresponding emission reduction responsibility and reduce the emission cost, and the carbon source enterprises with lower cost of carbon emission reduction and the suppliers of forest carbon sinks can obtain the corresponding economic benefits. So the value compensation of forest ecological benefit can realized by market, which is beneficial to regulating the carbon emission behavior of carbon source enterprises, and encourages the carbon neutral behavior of forest carbon sinks, and promote the coordination and coupling of economic development and environmental protection.

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