Carbon Emission Trading System Research Articles

What will happen to the power supply structure and CO2 emissions reduction when TGC meets CET in the electricity market in China?

In order to fulfill the goals of sustainable development and emission reduction, as the main contributor to emissions, optimizing the electric structure is imperative for Chinese electric power industry. In the "thirteenth five-year" period, China has implemented tradable green certificates (TGC) and carbon emissions trading (CET) in the electricity market to accelerate the development of renewable energy. In this study, we analyze and simulate the dual effects of TGC and CET on the electricity market based on the theories and models of equilibrium and system dynamics. The obtained results show that: (1) The increase of renewable portfolio standards and carbon price is advantageous to the expansion of green electricity. The higher the portfolio standard and the carbon price are, the better the electric structure optimization could be. (2) The proportion of renewable energy power generation is expected to achieve the goal of ‘renewable energy thirteenth five-year development planning’ by 2020 (Goal: 680 million kW, 1.9 trillion kW h, 27% of all electricity generated). (3) The CO2 emission in the electric power industry will be controlled, meanwhile effectively promoting the realization of national CO2 emission-reduction target by 2020 (Target: below 1.6298 ton CO2 emission/10,000 yuan). (4) TGC system and CET system are incentive compatible in China. Finally, we propose some policy recommendations on the mechanism design and implementation for these two systems.

Optimization Model of an Efficient Collaborative Power Dispatching System for Carbon Emissions Trading in China

In this paper, a collaborative power dispatching system (CPDS) was developed to maximize the profit of a regional biomass power system consisting of an independent power grid. A power generating, dispatching and carbon emissions trading system (CETS) could be engaged in joint strategic planning and operational execution. The principal of CPDS is interactive planning of generating units in power generation and carbon emissions trading. An efficient carbon emissions trading plan for a CPDS would lead to optimized power generation levels under available power production capacities and carbon emissions. In a case study, four generator policies are proposed by considering basic CETSs to comparatively analyze the function of each generator in the CPDS. Results of four scenarios are compared, showing that biomass energy could replace thermal units to a certain extent, the carbon emissions and coal consumption of the CPDS would lie at a lower level, and a pumped storage unit could adjust the load fluctuations. The results of a carbon trading analysis show that the CETS has no significant impact on the CPDS, but along with the increase in trading price or the decrease in the free quota, the economic interests of power plants will be reduced accordingly. This may lead to carrying out low-carbon projects and reducing carbon emissions. Therefore, it is imperative to reduce carbon emissions by replacing power units with high energy consumption, and improve the consumption capacity of renewable energy.

Research on the initial allocation of carbon emission quotas: evidence from China

In November 2015, China government announced that the national carbon emissions trading market is expected to start in 2017. Carbon emission trading system is a raising concern from day to day, in which the allocation of carbon quotas has the closest relationship with trading units directly determining the cost of carbon trading. Initial allowance allocation is fundamental, but it proposes difficulty in terms of the trading mechanism design. This paper is based on the total control principle of national layout, in which the government sets up the cap of emissions in the carbon emissions trading system and focuses on the historical emission allocation concept from the perspective of fairness and history responsibility meaning that the allocation of quota in the future is based on the historical emissions. Firstly, we carry out comparative analysis based on the economy development and the emissions of 31 provinces and cities in China and select the sign-post province, Hebei. Secondly, we take the sign-post province as benchmarking and compare the benchmarking with the other provinces on the economy to set three quota situations of different initial years. Finally, we conduct quota calculation of residual carbon dioxide of various provinces by the end of 2020 and provide the specific quota calculation plans under different situations. The result of quota indicates: Most provinces still have more or less surplus to reallocate by the end of 2020; some provinces and cities have developing economy at expense of large emission and old industrial area with high energy consumption and high coal demand are in the shortage of future emission space; for the developed areas, the earlier emissions accounting is not good for their owning surplus; the earlier the years we select as the starting to account the quota, the greater the reductions space we will have. Meanwhile, we carry out testing of the feasibility of self-providing quota plans. These results may provide corresponding policy advice for China.

The key elements analysis of Guangdong & Shenzhen ETS & tips for China national ETS construction

The only joint effort area of provincial and municipal governments resides in Guangdong Province and Shenzhen City in China’s carbon emission trading system (ETS) pilots, which characterize the nat...

基于重庆市碳排放权交易政策体系下企业对策措施探讨

碳排放权交易制度是利用市场化机制实现温室气体减排的重要手段，重庆市作为全国首批七个试点城市率先开展了碳排放权交易试点。本文从国家推进碳排放权交易的背景出发，深入分析了重庆市碳排放权交易的制度，结合企业实际在碳资产管理制度建设、低碳发展战略制定、低碳技术研发、碳金融业务创新、低碳发展能力培训等基础能力建设方面和生产决策、申报决策、交易决策、减排决策、CCER开发决策等企业决策思考方面提出了建议。 Carbon emission trading system (ETS) is an important means to reduce greenhouse gas emissions，Chongqing started experimental work as one of seven experimental cities in ETS. Under the background of our country promoting ETS and through deeply analyzing Chongqing ETS according enterprise actual condition, this paper proposes suggestions for fundamental construction such as institutional construction of enterprise carbon asset management, formulation of low-carbon developmental strategy, researching of low-carbon technology, innovation of carbon finance, low- carbon development ability training, and policy-making thoughts such as production policy decision, declaration decision-making, carbon trading decision-making, emission reduction decision- making and CCER development decision.

An Optimization Scheduling Model for Wind Power and Thermal Power with Energy Storage System considering Carbon Emission Trading

Wind power has the characteristics of randomness and intermittence, which influences power system safety and stable operation. To alleviate the effect of wind power grid connection and improve power system’s wind power consumptive capability, this paper took emission trading and energy storage system into consideration and built an optimization model for thermal-wind power system and energy storage systems collaborative scheduling. A simulation based on 10 thermal units and wind farms with 2800 MW installed capacity verified the correctness of the models put forward by this paper. According to the simulation results, the introduction of carbon emission trading can improve wind power consumptive capability and cut down the average coal consumption per unit of power. The introduction of energy storage system can smooth wind power output curve and suppress power fluctuations. The optimization effects achieve the best when both of carbon emission trading and energy storage system work at the same time.

Case study on initial allocation of Shanghai carbon emission trading based on Shapley value

Carbon emission trading is an effective measure to reduce greenhouse gas emissions worldwide. China has publicized plans to initiate the demonstration of carbon emission trading in seven regions as of 2013. Initial allocation is fundamental, but it proposes difficulty in the mechanism design of the carbon emission trading system. Benchmark, grandfathering and the Shapley value have been employed to simulate a specific case, which consists of the initial allocation of carbon emission allowances of three power plants in Shanghai, China. The results of the Shapley value are regarded as a theoretical equitable reference. The results of benchmark are similar to those of the Shapley value. However, it is apparent that the allocation regarding grandfathering is inequitable. Considering other factors, we proposed the following: At the introduction of experimental stage, free allocation pertaining to grandfathering can be adopted; meanwhile, benchmark should be prepared and adopted at the appropriate time. Furthermore, a portion of the initial allowances can be reserved for auction, and this portion for auction will escalate to the extent of 100% upon entering the formal stage. In addition, the tiered price mechanism and the subsidy policy are also suggested.

Effects of Carbon Emission Trading System on the Economic Value of Wood Pellet Boiler

Effects of Carbon Emission Trading System on the Economic Value of Wood Pellet Boiler

对气候变化危机及代际正义问题的哲学思考

为了解决国际气候争端问题，欧美等主要发达国家在其倡导的气候论坛及峰会上主张采用国际限额与交易制度。一方面，国际限额与交易制度难以全面评估和衡量不同国家碳的排放量及其减少排放的能力，正处于现代化进程中的中国据此将需要购买排放权，而代际正义有利于还原碳排放指标分配的公允。另一方面，在代际正义理论的背后，却存在明显的片面性，因为它忽略了现代科技不断进步的可能和社会价值意识水平的提高，其理论仅停留在平面维度上的思考。当前，发展中国家和发达国家应在差异中趋于协同，在看似矛盾冲突的气候谈判与整治格局中逐渐走出僵局。 Previously, in order to make international climate controversies defused, most advanced countries claimed carbon emission limitation and trading system should be taken at most international mainstream climate change summits. However, international carbon emission limitation and trading system can’t scientifically evaluate carbon emission demands and controlling abilities of different countries. And most developing countries, including China, will have to spend millions of money to purchase the authority of carbon emission. In this case, intergenerational justice theory seems to be a good way to endure fairness to the distribution of carbon emission rights. But there still exists some one-sidedness on intergenerational justice, for intergenerational justice neglects the improvements of modern technology and social awareness. And some parts of the intergene- rational justice theory still remain at plane-dimension thinking. At present, developing countries and developed countries should make improvements based on the common value, and despite mutual differences and contradictions, we can step out the impasse of global climate negotiation and governance.

我国航空公司成本转嫁能力实证研究

在世界各国积极探讨建立碳排放交易体系的大背景下，本文建立了基于企业行为理论的航空运输业成本转嫁实证模型。假设我国建立航空运输业碳排放交易体系后，以我国局部航线市场作为数据来源，本文估计了多类型航空公司在多种市场战略下的成本转嫁能力，进而模拟我国航空公司的碳排放成本转嫁能力。文章得出行业总体成本转嫁率约100%的预计，与欧盟委员会的影响评估报告和许多研究结果不谋而合。 As the world is actively exploring the establishment of carbon emission trading system, this paper builds an empirical cost pass-through model for airline industry based on the corporate behavior theory. Based on the assumption that China has built its own carbon emission trading system, selecting typical local airline market as the source of database, the paper estimates the cost pass- through abilities of kinds of airlines under a variety of market strategies, in order to stimulate air- lines’ cost pass-through abilities. It suggests that the overall industry cost pass-through rate is about 100%, which coincides with the European Commission's impact assessment report and many research results.

Risk Decision Analysis for Power Suppliers under the Carbon Emission Trading Environment

Based on the existing three mechanisms in the Carbon emission trading system, this paper proposes a hybrid carbon trading mechanism which is compatible with the characteristics of all the participants, analyzes the operation modes, benefits and risks of the power suppliers, builds a risk decision model for emission right trading according to the Financial Portfolio Theory, and gives its efficient frontier. This study provides not only theoretical supports for the power supplier’s effective management of emissions risks, but also expands the application scope of the risk management theory. Furthermore, this paper provides a reference for the government to establish an open carbon trading system.

Carbon emission trading system of China: a linked market vs. separated markets

The Chinese government intends to upgrade its current provincial carbon emission trading pilots to a nationwide scheme by 2015. This study investigates two of scenarios: separated provincial markets and a linked inter-provincial market. The carbon abatement effects of separated and linked markets are compared using two pilot provinces of Hubei and Guangdong based on a computable general equilibrium model termed Sino-TERMCo2. Simulation results show that the linked market can improve social welfare and reduce carbon emission intensity for the nation as well as for the Hubei-Guangdong bloc compared to the separated market. However, the combined system also distributes welfare more unevenly and thus increases social inequity. On the policy ground, the current results suggest that a well-constructed, nationwide carbon market complemented with adequate welfare transfer policies can be employed to replace the current top-down abatement target disaggregation practice.

A Theoretical Analysis of Carbon Emission Trading System in China and the Perfection of its Rules and Regulations

The Carbon emission trading mechanism is an important tool to tackle climate change, promote low-carbon economic development, and facilitate ecological civilization construction. The Carbon emission trading system is set up based on the overall amount control. It controls the greenhouse gas emissions through the marketing mechanism, and reduces the cost of carbon emission control. Through theoretical analyses of the property rights of carbon emission right and the legal relationship of carbon emissions trading ,the theoretical basis for the carbon emissions trading mechanism is established. Currently, the measures to improve the carbon emissions trading mechanisms in China mainly consist of perfecting the trading platform, improving the marketing regulation system, promoting legislations of the total amount control of carbon emissions and the initial allocation of carbon emissions right so as to realize the optimal environmental capacity allocation of carbon emissions.

Building Carbon Emissions Trading System for China under the Experience of EU Emissions Trading System

Along with the rapid development of economy, China has become the leading emitter of greenhouse gases in the world. Carbon emissions trading system is an important tool and means to response to climate change effectively and reduce greenhouse gas emissions. At present, Chinese carbon trading market is still in its infancy, and there are many deficiencies: legal system is imperfect and carbon source monitoring regulation is lax, the variety of trading is single, China does not have pricing power of carbon emissions and the layouts of trading platform are not reasonable. Through using the implementation experience of the EU emissions trading system, we construct Chinese carbon trading mechanism based on total control principle: voluntary trading market should be carried out fist and mandatory transaction will be implemented when market condition is sufficient. According to the quotas allocation from free to auction, mandatory transaction shall be implemented in there stages.

Effects of a Carbon Emissions Trading System on Aviation Financial Decisions

The cost of providing air transportation for passengers and cargo to, from, and within the European Union was scheduled to increase in 2012 due to the EU Emission Trading Scheme. The European Union (EU) has legislated that aircraft landing or taking off from EU airports are subjected to the Emission Trading System (ETS) and are levied a charge for the estimated amount of carbon dioxide (CO2) generated during the entire flight. Since direct measurement of CO2 emitted during flight is not practical, the EU carbon emissions are estimated using the amount of fuel consumed. CO2 is a greenhouse gas associated with detrimental environmental impacts. Transportation in the US contributed 31% of CO2 emissions and 26% of greenhouse gas emissions in 2010. According to the International Air Transport Association (IATA), aviation is responsible for 2% of global CO2 emissions, and currently represents a growing percentage. Reducing fuel consumption is the most effective way to reduce CO2 emissions, but operational changes, design changes, and use of alternative fuels are also effective. While ETS charges are controversial, the purpose of this paper is to discuss ETS and illustrate its inclusion in aviation financial considerations. This paper introduces aviation carbon ETS, discusses the impact of ETS on airlines, and presents a methodology to quantify the cost differences in fuel and EU ETS charges incurred by introducing a stop for flights into and out of the EU.

Policy Implications for Carbon Trading Market Establishment in China in the 12th Five-Year Period

Based on the survey of international emissions trading system (ETS) and quantitative analysis, policy suggestions on establishing a carbon ETS in China are presented in this study. Sectors sensitive to carbon prices, e.g., the power generation sector and the iron and steel industry, are given priority to be covered by the ETS. Interregional carbon trading should be carried out as early as possible. The cap of the ETS should be based on China’s carbon intensity reduction target with the floor carbon price for the market being set in the beginning. Suggestions on the infrastructure of ETS are also proposed, including the national wide carbon account registration system and the legislation to national measuring, reporting, verification system building. CitationLi, J.-F., Y.-X. Zhang, X. Wang, et al., 2012: Policy implications for carbon trading market establishment in China in the 12th Five-Year period. Adv. Clim. Change Res., 3(3), doi: 10.3724/SP.J.1248.2012.00163.

Research on Carbon Emission Trading Mechanism Including Forest Carbon Sinks

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.

The Comparative Analysis of Carbon Taxes and Emission Trading System

The Comparative Analysis of Carbon Taxes and Emission Trading System

A Study on the Construction of China's Carbon EmissionsTrading System

Abstract According to the current United Nations Framework Convention on Climate Change, China, as a developing country, does not need to undertake responsibilities and obligations of carbon emissions reduction, however as a responsible one with open market economy, it should make great effort to its research of carbon emissions trading system and actively build it at our own development level to make positive contribution to reduce the world's carbon emissions. This paper defines the commodity property of carbon emission right, which can be divided and traded, identifies the basic characteristics of China's trading carbon emissions trading system is cap-and-trade mechanism at present stage, and puts forward that China's total emission control is not an absolute target, but a relative one.

The carbon-sequestration potential of municipal wastewater treatment

The lack of proper wastewater treatment results in production of CO 2 and CH 4 without the opportunity for carbon sequestration and energy recovery, with deleterious effects for global warming. Without extending wastewater treatment to all urban areas worldwide, CO 2 and CH 4 emissions associated with wastewater discharges could reach the equivalent of 1.91 × 10 5 t CO 2 d - 1 in 2025, with even more dramatic impact in the short-term. The carbon sequestration benefits of wastewater treatment have enormous potential, which adds an energy conservation incentive to upgrading existing facilities to complete wastewater treatment. The potential greenhouse gases discharges which can be converted to a net equivalent CO 2 credit can be as large as 1.21 × 10 4 t CO 2 d - 1 by 2025. Biomass sequestration and biogas conversion energy recovery are the two main strategies for carbon sequestration and emission offset, respectively. The greatest potential for improvement is outside Europe and North America, which have largely completed treatment plant construction. Europe and North America can partially offset their CO 2 emissions and receive benefits through the carbon emission trading system, as established by the Kyoto protocol, by extending existing technologies or subsidizing wastewater treatment plant construction in urban areas lacking treatment. This strategy can help mitigate global warming, in addition to providing a sustainable solution for extending the health, environmental, and humanitarian benefits of proper sanitation.