Optimization and Spatiotemporal Differentiation of Carbon Emission Rights Allocation in the Power Industry in the Yangtze River Economic Belt

Carbon emission quotas and a reduction incentive scheme integrating carbon sinks for China's provinces: An equity perspective

The iron and steel industry is one of the important sources of global greenhouse gas emissions, and carbon emission reduction has become an important challenge for iron and steel enterprises. In order to realize the carbon emission reduction target, many countries and regions have established carbon emission trading markets to guide enterprises to reduce carbon emissions through the carbon emission right trading mechanism. In these trading markets, the price of carbon emission rights is an important influencing factor, which directly affects the emission reduction cost and the economic benefits of enterprises. However, current research on the trading price of iron and steel carbon emission rights is still relatively limited. The special nature of the iron and steel industry, such as high energy consumption and high carbon emission, makes the formation mechanism and influencing factors of carbon emission right trading price different from other industries. Therefore, an in-depth study of the influencing factors and trading mechanism of steel carbon emission right trading price is of great significance in guiding emission reduction decisions of steel enterprises and the policy formulation of the government.

<p>The scientific and reasonable allocation of initial carbon emission rights is the foundation of establishing and perfecting the carbon trading system, which is directly associated with the completion of carbon emission reduction targets. Guided by the rational distribution of China's carbon emission rights, this paper adopts a multi-index method to investigate the initial distribution of China's carbon emission rights from a regional perspective according to the comprehensive principles of fairness, efficiency, sustainability, and environmental capacity limit. The results show that the use of regional historical carbon emissions or economic factors as a single indicator of carbon emission rights distribution is unreasonable according to historical emissions or GDP, and the results are quite different from the actual demand. Under the overall coordination degree allocation model, it is reasonable for Region 2, Region 3, and Region 4 to undertake higher emission reduction responsibilities, and the emission reduction tasks in these regions are likely to be completed, which shows that the carbon emission rights allocation under the comprehensive principle is more in line with the actual demand and has good operability, robustness, and compatibility. The allocation of carbon emission quota requires the scientific and reasonable formulation of the total national allocation, that all provinces and cities can form a stable quota expectation, effectively design the allocation principle scheme, give consideration to fairness and operability, and do not share the responsibility of regional emission reduction with a one-size-fits-all approach.</p>

As the world’s largest carbon emitter, China considers carbon emissions trading to be an important measure in its national strategy for energy conservation and emissions reduction. The initial allocation of China’s carbon emissions rights at the provincial level is a core issue of carbon emissions trading. A scientific and reasonable distinction between the carbon emission rights of provinces is crucial for China to achieve emissions reduction targets. Based on the idea of multi-objective decision-making, this paper uses the improved Technique for Order Preference by Similarity to an Ideal Solution (TOPSIS) method to allocate China’s initial carbon emission rights to the provinces and uses the Gini coefficient sub-group decomposition method to evaluate the fairness of the allocation results. First, the results of a theoretical distribution show that in the initial allocation of carbon emission rights, a large proportion of China’s provinces have large populations and high energy use, such as Shandong Province, Jiangsu Province, Hebei Province and Henan Province; the provinces with a small proportion of the initial allocation of carbon emissions consist of two municipalities, Beijing and Shanghai, as well as Hainan Province, which is dominated by tourism. Overall, the initial allocation of carbon emission rights in the northern and eastern regions constituted the largest proportion, with the south-central region and the northwest region being the second largest and the southwest region being the smallest. Second, the difference between the theoretical allocation and the actual allocation of carbon emission rights in China was clear. The energy consumption of large provinces and provinces dominated by industry generally had a negative difference (the theoretical allocation of carbon emissions was less than the actual value), while Qinghai, dominated by agriculture and animal husbandry, showed a positive balance (the theoretical allocation of carbon emissions was greater than the actual value). Third, the results based on the Gini coefficient showed that the carbon emission right allocation scheme proposed by the Topsis model in this paper has good fairness. Fourth, the economic development structure, technological innovation level, carbon emissions and other indicators have certain impacts on the fairness of the initial allocation of carbon emission rights. Finally, this paper offers some suggestions on energy conservation and emissions reduction in China, taking four aspects into account: regional disparities, technological innovation, industrial structure and the initial allocation of carbon emission rights. This paper could be helpful to provide a reference for the rational allocation of China’s carbon emission right.

The relentless exacerbation of the greenhouse effect poses a significant challenge to the progress and sustainability of human civilization. Carbon emission rights serve as a pivotal gauge of the carbon trading market's dynamics. Examining the impact of carbon emission rights prices can shed light on how governments indirectly influence these prices through mechanisms such as carbon emission quotas and permits. This study focuses on analyzing the transaction prices of carbon emission rights quotas within the Guangzhou carbon trading market spanning from January 2015 to March 2023. Leveraging a selection of 17 variables across the realms of energy prices, macroeconomics, financial markets, and ecological environment, and drawing insights from the predictive outcomes of three distinct sub-models—namely Ridge Regression, Random Forest Regression, and Long Short-Term Memory neural network (LSTM)—a novel IOWHA operator vector angle cosine combination model is devised. The findings underscore that this combined model harnesses the predictive strengths of each sub-model, effectively curbing prediction discrepancies, and enhancing overall accuracy. The integration of these methodologies represents an optimal fusion for predictive modeling.

China’s initial allocation of interprovincial carbon emission rights considering historical carbon transfers: Program design and efficiency evaluation

Carbon emissions of water supply systems in China: Characteristic, right, right balance and reduction potential assessment

Analysis of the carbon emission reduction potential of China's key industries under the IPCC 2 °C and 1.5 °C limits

Evolutionary game- based optimization of green certificate- carbon emission right- electricity joint market for thermal-wind-photovoltaic power system

Along with the continuous development of the pilot carbon trading market and the construction of a uniform CET market, it is essential to establish a reasonable allocation method for carbon emissions consistent with the development of the CET market in China. The reasonable allocation of carbon allowances is a key means to ensure the efficiency of the carbon emission trading system. China's carbon emission trading market is still in its initial phase, and there are still some problems to be improved in terms of carbon quotas. This paper compares the allocation system of China's carbon emission rights with that of the international carbon emission rights allocation system. It compellingly explores China's carbon emission right allocation system in recent years. Based on the strict baseline requirements, the paper makes innovative proposals to allocate carbon emission allowances based on auction allocation, supplement them with free distribution, and provides reasonable suggestions for developing the trading market of carbon emission rights in China.

Allocation of CO2 emission quotas for industrial production in Industry 4.0: Efficiency and equity

Carbon reduction in a supply chain via dynamic carbon emission quotas

With the intensification of global climate change issues and increasingly stringent carbon emission controls, carbon emissions trading has become a crucial market-based mechanism for reducing carbon emissions. A deeper understanding of the factors influencing carbon emission rights prices and their formation mechanisms can enhance market transparency and effectiveness and promote the healthy development of the carbon trading market. This paper identifies the main factors affecting carbon emission rights prices and explores their formation mechanisms from both the internal and external perspectives of enterprises. Using a vector autoregression (VAR) model, it quantifies the impacts of energy prices, the climate, and technology levels on carbon trading prices in Shanghai, China. The results show that, in the short term, enterprise technology levels and energy prices significantly impact carbon emission rights prices, while the climate becomes more critical in the medium to long term. These findings propose specific policy recommendations for improving the carbon emissions trading market, with a focus on these three factors.

Bidding strategy optimization for power generation company in carbon emission rights and electricity market

Coking coal is a vital energy resource for economic development, with fluctuations in coking coal futures prices significantly guiding spot prices. Additionally, variations in carbon emission rights prices directly affect China's energy conservation and emission reduction efforts. This paper examines the daily trading prices of carbon emission rights and coking coal futures. It utilizes various tests, including the ADF test and cointegration test, and constructs a two-dimensional vector autoregression (VAR) model with a two-period lag. The paper also performs an impulse response function analysis and variance decomposition. Empirical results reveal: First, the daily trading prices of coking coal futures have exhibited a fluctuating upward trend over the past six years; Second, there is a long-term cointegration relationship between coking coal futures prices and carbon emission rights prices; Third, there is no Granger causality between the two; Fourth, fluctuations in carbon emission rights prices have a stronger guiding effect on coking coal futures prices than vice versa. Recommendations include: (1) Strengthening oversight of the coking coal futures market and leveraging policy guidance to prevent extreme prices; (2) Systematically including more participants in the carbon market, optimizing the trading structure, and promoting healthy market development; (3) When developing policies for carbon emission rights, the government should mitigate the impact of price fluctuations on other sectors.