Positive synergy or negative synergy: An assessment of the carbon emission reduction effect of renewable energy policy mixes on China's power sector

Carbon emission scenarios of China's power sector: Impact of controlling measures and carbon pricing mechanism

Which decarbonization policy mixes are better for China's power sector? A simulation balancing aggregate abatement effects and economic impacts

Drivers of renewable energy penetration and its role in power sector's deep decarbonization towards carbon peak

Energy, economic, and environmental impacts of electricity market-oriented reform and the carbon emissions trading: A recursive dynamic CGE model in China

Driving forces of provincial-level CO2 emissions in China’s power sector based on LMDI method

How to peak carbon emissions in China's power sector: A regional perspective

In this paper, we focus on China's power sector to investigate ways to improve emissions reductions in the context of global warming and rising carbon emissions. This paper reviews the current state of adapted carbon emission reduction policies in China's power industry and assesses the potential effectiveness of two mechanisms, carbon taxation, and carbon trading, in achieving substantial emissions reductions. China's power sector is a major contributor to global carbon emissions, and the paper explores the balance between short-term carbon tax policies and long-term carbon trading strategies aimed at promoting an early peak in carbon emissions as well as carbon neutrality within the country. This research finds that the carbon tax can have positive impacts in the short term, whereas carbon trading exhibits higher efficiency in the long term. The paper addresses this by proposing a combination of the two mechanisms to achieve effective emissions reductions in the power industry, supporting China's goal of achieving carbon neutrality by the time of 2060. Finally, we explore the feasibility and benefits of implementing a carbon tax, highlighting its suitability for near-term implementation in the power industry. We conclude that a combination of carbon taxes and carbon trading can make a significant contribution to China's carbon peak and carbon neutrality targets.

Major US electric utility climate pledges have the potential to collectively reduce power sector emissions by one-third

The carbon emission trading scheme (ETS), tradable green certificate (TGC) and green power trading (GPT) policies are vital for promoting energy transformation and carbon reduction under the dual carbon goals. However, the effects of and relationships among multiple policies urgently need to be studied. In this work, the panel data of 30 provinces in China from 2010 to 2023 are used. First, through the multiperiod difference-in-differences (DID) method, fixed effect models and mediating effect models, the carbon reduction effects of the pilot and national ETS policies, the renewable energy development effects of the TGC and GPT policies, and the multipolicy synergy effect are examined. A dual machine learning model is innovatively introduced to test the robustness of the results. Second, the slack-based measure–directional distance function–global Malmquist–Luenberger (SBM–DDF–GML) method is used to calculate the GTFP and investigate its transmission effect on policies. Finally, the impacts of the ETS, TGC and GPT policies on fossil fuel consumption are further analysed. The results indicate the following. (1) The pilot ETS policy reduces carbon emissions and carbon intensity, whereas the national ETS policy increases carbon emissions and carbon intensity in the short term. The TGC and GPT policies increase renewable energy generation and its proportion. (2) The synergy of the pilot ETS and GPT policies is the best for reducing carbon emissions and carbon intensity. The synergy among national ETS, TGC and GPT policies is optimal for developing renewable energy. In addition, there is redundancy between the TGC and GPT policies. (3) The pilot ETS policy inhibits GTFP, whereas the national ETS, TGC and GPT policies promote GTFP. The GTFP significantly reduces carbon emissions and carbon intensity and increases renewable energy generation and its proportion. (4) Both the pilot ETS and national ETS policies reduce the intensity of fossil fuel consumption. The GPT policy reduces the total level of fossil fuel consumption, whereas the TGC policy increases this level. In this work, innovative decarbonisation policies synergy pathways and insights into achieving green and low-carbon transitions in China and other developing countries are provided.

Costs and benefits of renewable energy development in China's power industry

Integration of tradable green certificates trading and carbon emissions trading: How will Chinese power industry do?

Has China achieved synergistic reduction of carbon emissions and air pollution? Evidence from 283 Chinese cities

Decarbonizing China's power sector by 2030 with consideration of technological progress and cross-regional power transmission

Structural emissions reduction of China's power and heating industry under the goal of “double carbon”: A perspective from input-output analysis

Under the “dual carbon” goals, the low-carbon economic dispatch of integrated energy systems (IES) faces multiple challenges, including suboptimal economic efficiency, excessive carbon emissions, and limited renewable energy integration. While traditional green certificate trading (GCT) enhances renewable energy adoption, its emission reduction effect remains inadequate. Conversely, standalone carbon emission trading (CET) effectively curbs emissions but often at the expense of increased operational costs, making it difficult to achieve both economic and environmental objectives simultaneously. To address these limitations, this study proposes an innovative green certificate trading–tiered carbon emission trading (GCT–CET) synergistic mechanism integrated with demand-side flexible load optimization, developing a low-carbon dispatch model designed to minimize total system costs. Simulation experiments conducted with the CPLEX solver demonstrate that, compared to individual GCT or CET implementations, the proposed coordinated mechanism effectively combines renewable energy incentives (through GCT) with stringent emission control (via stepped CET), resulting in a 47.8% reduction in carbon emissions and a 5.4% decrease in total costs. Furthermore, the participation of flexible loads enhances supply–demand balancing, presenting a transformative solution for achieving high-efficiency and low-carbon operation in IES.