Carbon Emission Quota Research Articles

Research on Accounting Treatment of China's Carbon Emission Right under Low Carbon Economy

Carbon accounting plays an important role in the balance between economic development and environmental protection. It is an effective tool to push enterprises to reduce emission. Under the guidance of the carbon peaking and carbon neutrality, along with the establishment and development of China's carbon emission trading market, the Ministry of Finance also issued the Interim Provisions on Accounting Treatment of Carbon Emission Trading to guide the standardized accounting treatment of relevant businesses of key emission enterprises in China. In this paper, the existing research on carbon accounting was discussed, and the views of the industry on the recognition and measurement of carbon emission quotas before and after the promulgation of the Provisional Provisions were reviewed. Moreover, the shortcomings of the Provisional Provisions were analyzed, hoping to contribute to the improvement of China's carbon accounting system and the development of the carbon emission trading market.

Allocating quotas for industrial carbon emissions fairly and efficiently to achieve “peak carbon”: A case of the yellow river basin in China

The “peak carbon” target has triggered wide-ranging and profound systemic changes and transformations that have left the provinces along the basin facing the dual dilemma of implementing carbon reduction actions and socioeconomic development. The allocation of carbon emission quotas is a fundamental task that reflects the division of labour and collaboration within a river basin to achieve the “peak carbon” target. Therefore, the fair and efficient allocation of industrial carbon emission quotas is the key to the implementation of carbon emissions trading and the establishment of carbon offset mechanisms. In the study, based on the description of the spatial and temporal evolution of the industrial carbon footprint and its carrying capacity, the industrial carbon offset area and industrial carbon reimbursement area are divided. Moreover, the allocation method of industrial carbon emission quotas is proposed by accounting for the principles of fairness, efficiency, and sustainability, and is verified using the provinces along the Yellow River Basin in China as a case. The results show that the industrial carbon carrying capacity is “unbalanced”. The provinces with strong carrying capacity are in the middle and upper reaches, and provinces with weak carrying capacity are in the middle and lower reaches. Moreover, the industrial carbon offset in the basin as a whole is higher than the industrial carbon compensation, which is potentially conducive to the implementation of cross-basin carbon offset. The weights of the equity, efficiency and sustainability indicators are 0.46, 0.23 and 0.31, respectively. The two industrial carbon compensated provinces can transfer the surplus industrial carbon emission quotas to the two industrial carbon offset provinces after obtaining the corresponding financial compensation. The Gini coefficient is 0.26, which is relatively fair. The study not only reveals the mechanism of the relationship among industrial carbon carrying capacity, carbon emission quota and carbon offset, but also provides a scientific basis for the establishment of a carbon emission quota trading market and the strengthening of the inter-provincial coordinated emission reduction incentives in the basin.

Globalisation and Regulatory Strategies: Adapting to Changes in International Business

This article examines the interrelations between globalisation, economic development, and ecological sustainability. It analyses the role of financial innovations in promoting sustainable development and focuses on strategies that help companies adapt and thrive in the face of globalisation, turning challenges into opportunities. Given the complexity of the global business environment, success on the international level depends not only on the speed of changes but also on compliance with various regulatory standards. Regulatory strategies are crucial for mitigating risks and leveraging new opportunities. Therefore, companies must have a thorough understanding of their internal processes and the external regulatory and political environment. The research suggests that the integration of advanced financial instruments and effective political strategies can optimise the impact of globalisation, fostering economic growth and ecological sustainability. It is important to maintain a balanced and objective tone when presenting research findings. The importance of further analysing mechanisms for regulating globalisation processes and developing innovative financial instruments to stimulate environmentally sustainable investments is underscored, emphasising the need for international cooperation and adaptation to climate change. The study concludes that achieving harmony between economic progress and environmental protection requires economic measures, such as carbon taxes and emission quota systems, that embody the principle of pollution responsibility. Legislative initiatives that set limits on emissions and regulate resource use, as well as voluntary initiatives such as corporate social responsibility programs and eco-production criteria, are also necessary. The range of approaches reflects different methods of implementation, levels of compulsion, and stakeholder involvement. The implementation of a particular strategy depends on the economic context, political climate, level of public awareness, and technical readiness of a given country or region.

Credible calculation method for regional corrected carbon emission factors taking into account the nearby consumption of renewable energy

Abstract The carbon emission factor of the power grid is a key data indicator for measuring the carbon emission level on the user side. Currently, the carbon emission factor of the power grid is not sufficient to accurately express the regional carbon emission level, and especially cannot accurately reflect the regional new energy consumption level, which affects user confidence in emission reduction and the accuracy of carbon emission quota issuance. Therefore, this article utilizes blockchain technology and carbon emission flow theory to realize the impact of user-side self-generated and self-used photovoltaics (PV) on carbon emission factors. We have constructed a residual power grid correction model, designed a blockchain intelligent terminal module and functional requirements, ensured the correctness of the model and results from the source, solved the problem of data tampering and insufficient data credibility generated by terminal devices at the source, and ultimately helped achieve the dual carbon goal.

Time varying characteristics of factors affecting carbon price in emission trading scheme in China: Evidence from SV-TVP-VAR approach

Analysis of the factors influencing the price of carbon emissions trading in China and its time-varying characteristics is essential for the smooth operation of the carbon trading system. We analyse the time-varying effects of public concern, degree of carbon regulation, crude oil price, international carbon price and interest rate level on China’s carbon price through SV-TVP-VAR model. Among them, the quantification of public concern and the degree of carbon emission regulation is based on microblog text and government decisions. The results show that all the factors influencing carbon price are significantly time-varying, with the shocks of each factor on carbon price rising before 2019 and turning significantly thereafter. The short-term shock effect of each factor is more significant compared to the medium- and long-term, and the effect almost disappears at a lag of six months. Thanks to public environmental awareness, low-carbon awareness and the progress of carbon market management mechanisms, public concern has had the most significant impact on carbon price since 2019. With the promulgation of relevant management measures for the carbon market, relevant regulations on carbon emission accounting, financing constraints, and carbon emission quota allocation for emission-controlled enterprises have become increasingly mature, and carbon price signals are more sensitive to market information. The above findings provide substantial empirical evidence for all stakeholders in the market, who need to recognize that the impact of non-structural factors on the price of carbon varies over time. Government intervention also serves as a key aspect of carbon emission control and requires the introduction of relevant constraints and incentives. In particular, emission-controlling firms need to focus on the policy direction of the carbon market, and focus on the impact of Internet public opinion on business production while reducing carbon allowance demand and energy dependence.

Cold chain distribution network design with heterogeneous fleet under carbon reduction policy application effect

ABSTRACT To integrate cold chain distribution network design problem with heterogeneous fleet, a multi-objective optimisation model is proposed to simultaneously optimise distribution routes, the quantity of internal combustion and electric refrigerated trucks (ERTs), and the number and location of distribution centres and charging stations with time window constraints, where the cold chain distribution operating cost and the customer dissatisfaction cost are minimised. A hybrid solution methodology, combining a multi-objective artificial fish swarm algorithm with a label-based optimisation algorithm, is presented to address this model. Extensive computational experiments verify the effectiveness of the proposed method. Moreover, a sensitivity analysis, focusing on the range of ERTs, the purchase subsidy for ERTs, the carbon tax and the carbon emission quota, informs the development of diverse carbon reduction policies. A comparative analysis of the implementation effect of carbon reduction policies can provide optimisation decision support for promoting sustainability in the electrification of cold chain distribution.

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

The method of carbon emission quota (CEQ) allocation based on data envelopment analysis (DEA) can allocate quotas without impacting efficiency improvements in industrial sector. A key element in effectively reducing carbon emissions is ensuring accurate efficiency measurement and equitable allocation of CEQ in the Industry 4.0 era. This paper divides industrial system into two stages: production (which more accurately reflects carbon emissions in production) and trading (which involves in the commercial system). Carbon emission efficiency in the production stage is calculated with a DEA model, with a high degree of accuracy. Given that higher efficiency values correspond with stronger capacity to bear the costs of carbon reduction, a CEQ allocation model is proposed which considers the contribution degree of efficiency. This model is applied to China’s industrial production system. The results show that a CEQ allocation scheme that focuses only on the production stage is more equitable than schemes which treat the industrial system as a black box. In allocation schemes which focus only on the production stage, the central region of China is least able to bear the cost of carbon reduction and receives the most CEQ, and the opposite is true in the eastern region of China. The proposed method not only measures the carbon emission efficiency of industrial production more accurately, but also considers the balanced development of different regions when allocating carbon emission rights. The CEQ allocation scheme based on our model can confidently meet the needs of sustainable development in the era of Industry 4.0.

The Establishment of China's Carbon Emission Quota Futures Market

The Establishment of China's Carbon Emission Quota Futures Market

Углеродные единицы: зарубежное регулирование. Часть вторая

The work is devoted to identifying the legal nature of carbon units, as well as substantiating the possibility of classifying carbon units as objects of law in order to determine the optimal model for regulating emission and turnover of carbon units and emission quotas.

Carbon Emission Right Price Prediction based on IOWHA Operator Vector Angle Cosine Combination Deep Learning

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.

Research on the allocation scheme of carbon emission allowances for China's provincial power grids

The power industry is the industry with the highest carbon emissions in China, and the rational allocation of carbon quotas for the power industry is the key to the rational allocation of carbon quotas in China, while the transfer of carbon emissions generated by inter-provincial power trading makes it difficult to calculate the carbon emission quotas for power. The article calculates the comprehensive power carbon quota for each province based on the principles of equity(PEQ) and the principles of efficiency(PEF). The results of the study prove the following points. (1) There are significant differences in the carbon emission factors calculated for electricity generation and consumption in each province. (2) The western provinces with abundant electricity resources deliver electricity to the eastern and southern provinces to ensure their economic development, so the western provinces with higher inflows of electricity carbon emissions bear the carbon emission pressure of the eastern and southern provinces. (3) The provincial electricity carbon quota calculated by the principle of comprehensiveness(PC) takes into account social equity and economic efficiency, and the calculation results are more reasonable. This study achieves balanced regional development by reasonably allocating provincial electricity carbon quotas.

Study on the Initial Allocation of Carbon Emission Rights Applicable to China's National Conditions: from the Perspective of Comprehensive Principles

<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>

Carbon emission allowances and green development efficiency

This study delves into the nexus between the efficiency of carbon emission allocation and the efficiency of green development within the context of innovative city construction. Leveraging data from 283 prefecture-level cities and corresponding provincial-level panel data spanning the period from 2005 to 2019 in mainland China, the research employs the zero-sum gain DEA model to compute provincial carbon emission allocation efficiency and allocate allowances. Furthermore, it utilizes the all-factor non-radial directional distance function and the SBM-DEA model to gauge the green development efficiency of prefecture-level cities. The double-difference method is applied to evaluate the impact of innovative city construction on regional green development efficiency. The results indicate that an imbalance between carbon emission allocation efficiency and emission quotas detrimentally affects urban green development. However, technological progress, factor accumulation, and the institutional environment associated with innovative city building mitigate this negative impact. Heterogeneity analysis reveals a differentiated effect of innovative city building on regional green development efficiency. This paper not only explores the concept of achieving an equitable distribution of carbon emission allowances but also examines how innovative city building influences regional green development. By establishing connections between urban policies, the equitable distribution of carbon emission allowances, and regional green development, it introduces a new perspective for promoting high-quality development at the regional level.

Effectiveness of policies for electric commercial vehicle adoption and emission reduction in the logistics industry

Electric commercial vehicles (ECVs) offer a promising solution to reduce carbon emissions, but barriers like high purchase costs, limited range, long charging times, and battery degradation hinder their adoption. This research develops a mathematical model to explore the impact of government policies, specifically carbon tax policy and the cap-and-trade mechanism, with or without purchase subsidy, on the mixed fleet configuration of electric and internal combustion commercial vehicles. Through a comparative analysis based on a real case in Shenzhen, this research provides insights into the impact of policies on ECV adoption and emission reduction. The findings indicate that higher tax rates and carbon prices effectively promote ECV adoption, while the carbon emission quota does not. When choosing policies, the government should consider its situation and objectives. Combining cap-and-trade mechanisms with purchase subsidies is the most effective for ECV adoption and emission reduction, assuming financially feasible. Alternatively, implementing a carbon tax policy without purchase subsidy is more practical. The cap-and-trade mechanism in the long term supports the phase-out of purchase subsidies and contributes to sustainable economic and environmental development. What's more, the findings provide guides for the government to determine an appropriate industry regulator factor when allocating quotas for the logistics industry.

Carbon Futures Volatility Forecasting: The Role of Spillover Effect from Crude Oil Futures Market

Accurate prediction of the volatility of EU carbon emission quota futures is an important foundation for pricing derivative products, portfolio allocation, and risk management. On the basis of the GARCH-MIDAS model involving mixed frequency data sampling, this article considers the spillover effect of Brent crude oil futures market on carbon quota futures market, and incorporates the spillover effect into the prediction of carbon quota futures volatility to construct the VS-GARCH-MIDAS model. Using the monthly realized volatility of Brent crude oil futures as a proxy variable to reflect spillover effects, empirical results indicate the existence of a one-way spillover effect of Brent crude oil futures market on carbon quota futures market. Moreover, the GARCH-MIDAS model considering spillover effects has better in sample fitting performance and stronger out of sample predictive ability than the original GARCH-MIDAS model. To ensure the robustness of this conclusion, this paper also investigates the impact of spillover effects generated by WTI crude oil futures on the volatility of EUA futures, and concludes that the GARCH-MIDAS model considering spillover effects can improve the prediction accuracy of EUA futures volatility.

ЕКОНОМІЧНІ ІНСТРУМЕНТИ СТИМУЛЮВАННЯ РОЗВИТКУ ВІДНОВЛЮВАЛЬНОЇ ЕНЕРГЕТИКИ ТА ПІДВИЩЕННЯ ЕНЕРГОЕФЕКТИВНОСТІ В ЄС

The study highlights the pivotal role of tax discounts and financial incentives, alongside support from grants and subsidies, in fostering renewable energy advancements and enhancing energy conservation within the European Union. Instruments for market oversight, including eco-certifications and carbon emission quotas, along with premium rates for green energy, are key to securing investments and project profitability. Levies aimed at environmental preservation push for a shift away from fossil fuels, and the creation of marketplaces for green energy, coupled with the deployment of modern digital solutions and intelligent networks, bolster the production and delivery efficiency of such energy. In the realm of renewable energy application, particularly regarding heating and cooling, Sweden, Estonia, Latvia, Finland, Lithuania, and Denmark stand out as pioneers. Trans-European Energy Networks (TEN-E) play a critical role in enhancing the energy efficiency of the European Union. The integration of TEN-E with renewable energy sources, such as wind and solar, facilitates the transition from fossil fuels to cleaner and more efficient forms of energy. The EU promotes the use of energy service contracts, where energy service companies invest in energy efficiency measures at client sites and receive payment from the energy savings. Tax policies aimed at fostering energy efficiency and the adoption of eco-friendly technologies vary widely across the European Union, reflecting the diverse fiscal strategies of its member states. Nonetheless, several common forms of tax incentives have emerged as popular tools for promoting such initiatives. These include: Providing tax deductions for implementing energy-saving upgrades, Applying lower VAT rates to products and services that conserve energy, offering tax relief or reduced tariffs for the consumption of renewable energy, granting tax advantages to businesses that invest in making their operations more energy-efficient, encouraging the acquisition and use of vehicles and transportation modes that are more energy efficient through tax benefits.

The Impact of Carbon Emission Quota Allocation Regulations on the Investment of Low-Carbon Technology in Electric Power Industry Under Peak-Valley Price Policy

This article focuses on carbon emission quota allocation regulations and their impact on investments in low-carbon technology within the electric power industry, as well as other enterprises’ decisions and profits under peak-valley price policy and cap-and-trade mechanism. An electricity supply-chain model is constructed in a Stackelberg game, which comprises an electricity-generating enterprise (leader) and an electricity retailer (follower). The backward-induction method is used to obtain the investment in low-carbon technology and electricity price under three scenarios of carbon emission quota allocation regulations: no regulation, grandfathering allocation, and benchmarking allocation. The main results are: first, benchmarking allocation always results in higher investment in low-carbon technology, but generates greater total carbon emissions than grandfathering allocation under most conditions; and second, under benchmarking allocation, as the unit carbon emission quota increases, total carbon emissions first increase and then decrease. Therefore, benchmarking allocation is the better regulation for the low-carbon technology investment. Moreover, benchmarking allocation is also the better regulation for total carbon emissions with a higher unit carbon quota or a higher carbon price.

How does carbon emission trading scheme affect enterprise market value? A roadmap towards natural resources sustainability

China has committed to establishing a unified national carbon emissions market to achieve carbon reduction goals. The Carbon Emission Trading Scheme (CETS) internalizes emission reduction costs, which may affect enterprise market value (EMV), but this has seldom received attention. Therefore, based on A-share listed enterprises data from 2009 to 2019, this study not only focuses on investigating the direct and heterogeneous impact of CETS on EMV but also identifies the effective market mechanism design by constructing a unified research framework including carbon emission quota allocation schemes, penalty mechanisms, and EMV performance. The empirical results are as follows: (1) The CETS can significantly enhance the EMV of covered enterprises, indicating that China's CETS supports the Porter hypothesis. Compared with state-owned and small enterprises, the CETS has a more significant effect on promoting the EMV of non-state-owned and large enterprises. (2) The mixed carbon quota allocation scheme (the combination of free and auction schemes) is more effective in improving EMV than the pure free quota allocation system. Meanwhile, the mixed penalties combining economic and non-economic measures can effectively encourage CETS-covered enterprises to participate in carbon trading activities, thus enhancing overall EMV. (3) The results of the mediation effect test indicate that the mixed schemes improve EMV by promoting low-carbon technology innovation, and mixed carbon quota allocation schemes have a more significant effect through this channel. These findings have important reference value for improving EMV under the CTEs, achieving the carbon peak and carbon neutrality goals, and promoting sustainable economic development.

A study on the two-level allocation of carbon emission quotas in China at the provincial level.

Carbon emission reduction is an essential means to achieve the "double carbon goal," and the scientific and reasonable allocation of carbon emission quotas (CEQ) is the basis for promoting carbon emission reduction. In this study, the first level was based on the entropy TOPSIS scores of provinces under the principles of fairness, efficiency, sustainability, and feasibility and used the K-mean clustering method to cluster the 30 provinces and allocate the CEQ to each zone group; the second level consolidated the impacts of the four principles and the marginal abatement costs of CO2 to allocate CEQ to the provinces within the zone group. Finally, each province's initial spatial balance of CEQ (ISBQ) is classified and evaluated. The study shows that the most quotas are for Guangdong, Zhejiang, and Inner Mongolia, and the least for Ningxia, Shanxi, and Guizhou. This study compares the results of CEQ allocation with the current carbon emission scale and finds that 11 provinces, such as Shandong and Hebei, show a deficit in future carbon emission space, and 19 provinces, such as Hainan and Beijing, show a surplus in carbon emission space. Given each province's different emission reduction tasks and pressures, differentiated emission control policies are the key to achieving China's "2030 target".

Modeling robust bi-level BCC production planning problem with uncertain carbon emission mechanism

This paper studies the biomass–coal co-firing (BCC) production planning problem under the carbon emission quota allocation (CEQA) mechanism. However, carbon emission parameters are uncertain due to many factors, such as the type of power units and coal quality. To address this challenge issue, this paper proposes a new globalized robust bi-level optimization model, where the uncertain parameters are characterized by a pair of uncertainty sets. In the proposed model, the upper government as the leader decides the CEQA mechanism, while the lower power plants as the followers develop the production planning according to the given CEQA mechanism. Moreover, based on the Lagrange duality theory and Karush–Kuhn–Tucker (KKT) conditions, the proposed model is equivalently converted into a computationally tractable single-level model. Finally, a practical case study in Shandong Province demonstrates that compared with the nominal bi-level and robust bi-level models, the proposed optimization model can not only effectively resist parameter uncertainty, but also be less conservative.