Abstract
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.
Highlights
Carbon dioxide is an important greenhouse gas implicated in global warming and sea-level rise [1].Since it takes a long time to generate electricity from renewable energy, a solution to the problem of the massive carbon emissions generated by conventional coal and gas-fired power plants is urgently required [2,3,4]
Based on the data of the seven pilot carbon trading markets in China from 2014 to 2018, a carbon trading efficiency evaluation system was constructed based on six factors: (1) the number of emission-controlled enterprises (A1), (2) the carbon price index (A2), (3) the total number of carbon market transactions (B1), (4) the total carbon market turnover (B2), (5) the trading activity (B3), and (6)
Since the data are for the carbon trading pilot markets as a whole and do not involve the power industry in each region, we took the ratio of the annual industrial output value of the electric power, heat production, and supply industry, and the total industrial output value of each pilot area as the proportion of the carbon trading data of the power industry in the overall carbon trading data for each pilot area
Summary
Carbon dioxide is an important greenhouse gas implicated in global warming and sea-level rise [1].Since it takes a long time to generate electricity from renewable energy, a solution to the problem of the massive carbon emissions generated by conventional coal and gas-fired power plants is urgently required [2,3,4]. The power industry is an indispensable resource-based industry in China, and plays a central role in the carbon trading market. The main purpose of carbon trading is to reduce the emission of pollutants, benefit human and environmental systems, and change the power industry from one characterized by high resource consumption to a clean industry [5,6]. Pilot regional carbon trading schemes have been conducted in China for many years, and valuable experience has been gained. The success of the national carbon market and quota allocation depends on the further development of the industry. Each region should use a quota allocation method that is suitable based on its developmental stage and resources, with adjustments and innovations implemented as necessary
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