Carbon Trading System Research Articles

Carbon Market within the Framework of Environmental Protection and Management Policies in Indonesia

Since climate change poses a significant global risk, the Indonesian government has introduced numerous regulations in line with its National Determined Contribution (NDC) goals. Aligned with the objectives of the Paris Agreement, Indonesia recently initiated a carbon trading system anticipated to fulfill the nation's NDC. Researching the legal framework is crucial for the continuous improvement and implementation of Indonesia’s carbon market, given its novelty and the challenges that must be addressed. Addressing climate change through carbon trading is integral to Indonesia's environmental protection and management strategies, reflecting a deliberate endeavor towards sustainable development. Nonetheless, to realize zero emissions, comprehensive research on the Carbon Market is essential to ensure its alignment with Indonesia's Environmental Protection and Management Law and to bolster the Sustainable Development Goals. This research paper utilizes normative legal studies to explore carbon trading within the legal framework based on Environmental Law policies. Adopting a similar approach to developing Indonesia's Environmental Law since 1982, it is anticipated to bolster the successful implementation of a carbon market in Indonesia aimed at reducing the nation’s carbon emissions and fulfilling its Nationally Determined Contribution (NDC).

Construction of China’s Carbon Financial Accounting System from the Perspective of Sustainable Development

Carbon Financial Accounting System highlights the importance of carbon finance and carbon accounting in China's efforts towards sustainable development and reducing its carbon footprint. The article discusses the need to manage and trade carbon assets, develop a comprehensive carbon financing system, and account for and report carbon activities. It proposes constructing a carbon accounting framework that includes all key sources of carbon emissions and carbon sequestration capacity. The article emphasizes the need to integrate carbon accounting into a company's operations and establish a comprehensive carbon finance ecosystem as a critical component of national strategic development. To achieve this, the Chinese government must promote CDM initiatives and relevant policies, enhance support to intermediary institutions, centralize the management of CDM projects, and strengthen carbon financing regulations. The article suggests establishing carbon trading and pricing mechanisms and improving the carbon trading system to create an effective carbon finance regulatory structure. Additionally, a carbon accounting system is required for financial and accounting oversight to support green and low-carbon growth, hence strengthening carbon accounting and reporting regulations of companies. The incorporation of carbon exchange, carbon funds, and carbon sinks banks are also essential in enhancing the financial accounting system.

The response of European offshore wind power to national greenhouse gas emissions and the resulting environmental benefits

Renewable energy represents a pathway towards sustainable development and reducing dependence on fossil fuels for the international workforce. Following the Russo-Ukrainian conflict, the EU has been intensifying its transition towards clean energy, reaffirming its net-zero emissions goal. Under this goal, accelerating the development of renewable energy has become a necessity. Wind power holds a significant position among the EU's RES. Due to the high population density in the EU, offshore wind power, compared to onshore wind power, experiences faster wind speeds and more stable wind sources, making the boost of offshore wind energy a major development trend for the EU's new energy initiatives. The results indicate a significant positive correlation between offshore wind power generation and greenhouse gas emissions. On average, for every 100 million tons of GHG emissions, the EU should achieve an annual power generation of 3148.11 GWh through offshore wind power and increase the cumulative installed capacity of national offshore wind power to 768045 MW. In combination with the EU's carbon trading system and the carbon price and emission reduction effects of offshore wind power proposed by some scholars, an installed capacity of offshore wind power approximately accounts for 2.69% of the EU's emission reductions, potentially generating an economic benefit of 21825 billion euros.

Carbon Trading Market and Green Innovation of Enterprises—Based on the Triple Difference Model

This article takes Chinese manufacturing listed companies from 2000 to 2020 as the research object, based on enterprise green patent data, and adopts a double difference method to study the effect of carbon trading pilot policies, a quasi-natural experiment, on enterprise innovation. Research has found that: (1) The carbon trading pilot policy has significantly promoted green innovation in enterprises and increased their technological innovation efforts. This conclusion remains valid after a series of robustness tests and endogeneity treatments, including placebo testing, excluding the implementation of innovative city pilot policies, and interference from economic crises. (2) Mechanism testing has found that carbon trading pilot policies can significantly promote green innovation in enterprises by strengthening the effectiveness of environmental regulations and improving the cash flow situation of enterprises. (3) Heterogeneity analysis shows that the concentration of technology and the degree of equity dispersion in enterprises can affect the effectiveness of innovation. In response to the above conclusions, this article proposes suggestions for improving the carbon trading system, exploring multidimensional paths for carbon trading pilot projects to promote enterprise innovation, and improving policy adaptability, flexibility, and execution intensity. The research in this article provides policy inspiration for further improving the carbon trading market, enhancing the effectiveness of the carbon trading system, and fully leveraging the carbon market to promote green innovation for enterprises and achieve low-carbon development. It has reference significance for the construction and improvement of the national carbon market and promotes the improvement of national energy conservation and emission reduction policy planning.

The impact of China's carbon trading policy on enterprises' energy-saving behavior

This paper mainly investigates whether emissions trading for pollutant permits more effective. By employing difference-in-differences method and a compressive firm-level dataset, we evaluate the impact of carbon trading system pilot cities policy on enterprises' energy-saving behavior. The findings indicate that after carbon trading system pilot cities policy, enterprises’ coal consumption and coal intensity decreased by almost 34 % and 33 % respectively. The policy effect is more pronounced for larger companies and for firms in energy-intensive sectors. Moreover, the policy effect becomes stronger over time. Our results satisfy the common trend assumption. Meanwhile, the investment in equipment and output are increased, which prove emissions marketization could bring about substantial improvements in productivity.

引入碳交易体系下公交企业的可持续发展

引入碳交易体系下公交企业的可持续发展

The era of global warming mitigation: The role of financial inclusion, globalization and governance institutions

Several efforts have been undertaken by environmentalists, nations, and various international organizations towards the fight against carbon emissions. The continuity of the environment has been one of the main concerns of the international system and state and non-state actors and government institutions are encouraged to play their roles effectively. Therefore, the study assesses the effect of financial inclusion, globalization, and government institutions on carbon emissions. The study used data from 1996 to 2021 and employed FMOLS model for the analysis. The findings of the study confirm the pollution halo hypothesis implying globalization promotes environmental sustainability. However, financial inclusion and government institutions have no significant effect on global warming mitigation. Nevertheless, institutional governance encourages global warming while political stability promotes the fight against global warming, the effect of economic governance is not significant. Renewable energy and economic growth exhibit positive and negative effect, respectively, on environmental sustainability. The findings suggest the encouragement of the rule of law, political stability, and an effective low carbon trading system as part of the policy implications.

Future of Blockchain: Data Storage, Carbon Calculation, Accounting, and Emissions Trading

The paper explores various aspects of data storage technologies, including Solid-State Storage, Cloud Computing, Edge Computing, and Blockchain, in the context of their implications, advantages, and limitations. Each technology's impact on data storage, performance, security, scalability, and environmental considerations is examined. Carbon Footprint (CF) is introduced as a measure of the environmental impact of data storage methods. The paper then delves into carbon calculation approaches, emphasizing the importance of accurate measurement in a computing environment. The integration of Carbon Footprint and Blockchain technology is discussed, presenting a framework for managing carbon emissions in data storage. Carbon accounting methodologies, including spend-based, activity-based, and hybrid methods, are detailed along with their applications in estimating greenhouse gas emissions. Finally, the paper explores the intersection of Carbon Emission Trading and Blockchain, highlighting how Blockchain's transparency and security attributes can address challenges within carbon trading systems.

Collaborative governance effects of carbon market on GHG and air pollutants emission reduction in 3E model —— analysis based on System Dynamics

The carbon market is regarded as one of the important means to achieve China's dual carbon target. It has ancillary effect for reducing air pollution while regulating carbon emissions since climate change and air pollution share the same origin and homology. Research on how to design the carbon market mechanism in order to maximize the synergistic effect of reducing greenhouse gas and air pollution will have a very important practical impact for China. This study conducts a theoretical analysis of the collaborative emission reduction path of China's carbon market, and constructs an Energy-Economy-Environment (3E) model of the collaborative emission reduction effect of carbon trading system based on System Dynamics. After analyzing the feedback path of the core cycle of the model and verifying its performance, three main policy factors in the carbon market are explored, and their effects under the dual objectives of emission control and economic development are comprehensively evaluated. This study suggests that the exploration of the potential of carbon market for collaborative governance should be accelerated, and ensure the orderly expansion of coverage and precise setting of limits, so as to ensure the smooth achievement of carbon reduction targets while guaranteeing the social and economic development.

Analysis and Prediction of Energy, Environmental and Economic Potentials in the Iron and Steel Industry of China

The green and low-carbon transformation of the iron and steel industry stands as a pivotal cornerstone in the development of China. It is an inevitable trajectory guiding the future of industry. This study examined the energy consumption and carbon emission trends in the iron and steel industry. Variations under different scenarios were analyzed while emphasizing production control, changes in production structure and energy efficiency improvement. The analysis integrated the extreme energy efficiency model. This study proposed methods to enhance energy efficiency in the iron and steel industry. The costs of energy efficiency improvement and production structure changes were assessed using marginal energy saving and abatement cost curves. The findings showed that the carbon emission reduction contribution of crude steel production decline is the highest, while energy efficiency improvement technology offers the smallest, whose contribution, however, is substantial and cannot be overlooked by 2030. Energy efficiency improvement in the Chinese iron and steel industry results in an average unit energy saving and abatement cost of 27.0 yuan. It results in a total abatement cost of 21.02 billion yuan and a potential abatement of 780 Mt. Considering abatement potential, altering production structure offers significantly higher cumulative abatement compared to energy efficiency improvement technology. This is because the per unit abatement cost of production structure change is 702.7 yuan. However, this high cost poses a challenge to widespread adoption. The integration of the iron and steel industry into the carbon trading system necessitates reinforcing market constraints and expediting process adjustments. These steps are crucial to achieving the green and low-carbon transformation of the industry.

Towards Carbon Neutrality and Circular Economy in the Glass Industry by Using the Production Decision Model

In the modern age, where global warming is intensifying year by year, carbon reduction has long been an issue that countries all over the world must pay attention to. Therefore, governments have established a carbon tax and trading system to control the total carbon emissions of each country. According to the European Container Glass Federation (FEVE), every 10% recycled waste glass can reduce carbon dioxide emissions by 5%. Recycling waste glass will not only save the cost of raw materials but also make a significant contribution to sustainable development. This study uses the circular economy concept in the glass industry to recycle waste glass. It combines activity-based costing (ABC) and the Theory of Constraints (TOCs) to establish a production decision-making model, including carbon tax and trading. The objectives of this study are to solve the problem through mathematical programming to explore the impact of the carbon tax and carbon rights cost on corporate profits and to provide the government with the results as a reference for establishing a carbon tax system.

A Multi-Agent Integrated Energy Trading Strategy Based on Carbon Emission/Green Certificate Equivalence Interaction

To meet the demand for constructing a market mechanism that adapts to the integrated energy system and promotes market-oriented reforms in the energy sector, in-depth research on integrated energy trading strategies is required. This study focused on the integrated energy trading problem and clarify the relationships among participants in the integrated energy market. A regional integrated energy system model was established that enables trading of electricity, gas, heat, and cold, and propose a integrated energy trading strategy based on the carbon emissions/green certificate equivalence interaction. Firstly, the trading process of carbon emissions and green certificates, the underlying representation of green attributes, and market transaction prices are analyzed. Combining with a tiered carbon trading system that includes rewards and penalties, a carbon emissions/green certificate equivalence interaction mechanism is constructed. Secondly, the paper utilized the flexible characteristics of loads within the industrial park to establish a integrated energy demand response model for electricity, heat, and cold. Finally, with the objective of minimizing regional operating costs, a integrated energy trading model considering the carbon emissions/green certificate equivalence interaction mechanism was developed. In the simulation, the operating cost of the system is reduced by 4%, and the carbon emission is reduced by 11.4%, which verifies the effectiveness of the model.

Analysis of the Impact of Photovoltaic Curtain Walls Replacing Glass Curtain Walls on the Whole Life Cycle Carbon Emission of Public Buildings Based on BIM Modeling Study

The construction industry plays a crucial role in achieving global carbon neutrality. The purpose of this study is to explore the application of photovoltaic curtain walls in building models and analyze their impact on carbon emissions in order to find the best adaptation method that combines economy and carbon reduction. Through a carbon emissions calculation and economic analysis of replacing photovoltaic curtain walls on a large public building in Zhenjiang, China, the results showed that after replacing glass curtain walls with photovoltaic curtain walls, the carbon emissions during the construction operation stage decreased by 30.74%, but the carbon emissions during the production and transportation stage of building materials increased by 10.48%. The carbon emissions throughout the entire life cycle of the building have been reduced by 20.99%. This indicates that photovoltaic curtain wall technology has the potential to reduce building carbon emissions. Further promoting the development of production technology and sales routes for photovoltaic curtain walls and accelerating the improvement of carbon trading systems can further improve the carbon emission reduction effect of buildings. This study provides practical reference for public buildings in similar areas and guidance for reducing carbon emissions in the future.

Will regulated firms benefit from carbon emission trading system? Evidence from a Market Power Perspective.

The impact of the carbon emission trading system (ETS) on firms' market competitiveness has been a controversial issue with no consistent theoretical conclusions. The aim of this paper is to explore the impact of the carbon emission trading system on firms' markups using the latest robust staggered difference-in-difference estimation method. The results show that China's carbon emission trading system greatly contributes to the enhancement of firms' market power, as evidenced by a series of robustness tests. In addition, the analysis of the impact mechanism shows that the carbon emission trading system enhances the market power of firms through the low-carbon innovation effect and the market integration effect, while the impact of the environmental cost effect is not obvious. Moreover, the heterogeneity analysis shows that the impact of China's carbon trading system policy on firms' market power is more pronounced, especially for those firms that are actively involved in low-carbon transformation and upgrading, have a stronger cost-shifting capacity, and are more efficient in production. This study provides empirical evidence on how environmental regulations affect firms' market power and offers theoretical guidance for the construction of China's carbon market.

A decision-making optimization model for ship energy system integrating emission reduction regulations and scheduling strategies

The International Maritime Organization (IMO) has established various emission reduction regulations to limit ship emissions. Ships can choose among several energy system strategies to meet relevant regulatory requirements, and choosing the right energy strategy can maximize the ship's profitability, which is particularly important for shipping companies. In this paper, several shipping industry information such as emission reduction regulations, ship parameters, and energy strategy characteristics are integrated, and the potential connection between the ship scheduling approach and alternative energy system strategies is considered. Then, a more efficient energy strategy selection model is proposed based on life cycle analysis, which is solved by a designed dynamic programming method. Compared with the state of the art, this paper provides a novel way for shipping companies to link changes in ship scheduling behavior to energy strategy choices, which was ignored by previous studies. The proposed method is applied to a 5,000 Twenty-feet Equivalent Unit (TEU) container ship. The results show that, compared to the traditional method, the proposed model allows to select more appropriate energy system strategies and to increase profitability by nearly 30%. And traditional approaches underestimate the profitability of fuel switching and installing open-loop scrubbers, the proposed approach may prompt shipping companies more towards adopting the above two energy system strategies. In addition, the proposed model can help shipping companies effectively cope with fuel price fluctuations. Finally, compared to other carbon reduction policies, the incorporation of ships into the carbon trading system will encourage them to use Liquefied Natural Gas (LNG), thereby effectively reducing ship CO2 emissions.

Carbon allowance auction design of China's ETS: A comprehensive hierarchical system based on blockchain

This study proposes a blockchain-based optimization framework for carbon allowance allocation auctions. First, the study assesses the status quo of carbon trading, pinpointing barriers, future development trends, and identifying carbon quota auction standards and methods pertinent to the Chinese context. Second, based on China's carbon market needs and the technical characteristics of blockchain, this study reconfigures the functions and responsibilities of each participant and creates a framework for a carbon allowance auction system to optimize the carbon trading process. Third, an algorithm for the carbon allowance auction system is constructed, and the corresponding smart contract is created and simulated. The results illustrate that our proposed system framework facilitates universal carbon allowance auctions, efficiently addresses potential disputes during the auction process, enhances market transparency and credibility, and offers comprehensive privacy protection with flexible information disclosure options for corporations. Blockchain's role in fostering paid distribution and incentivizing participation in the carbon market is further recognized. A blockchain-based carbon trading system safeguards transaction security and efficiency, maintains precise transaction records, and provides automated settlement. Ultimately, this paper presents policy suggestions for the development of a national carbon market in China.

The Development of China’s Carbon Emissions Regulation System

In the face of climate and environmental problems caused by carbon emissions, China is taking positive actions, such aspromoting the achievement of the emission peak of traditional energy sources, accelerating the optimization of industrial andenergy structures, promoting and improving the construction of the national carbon trading market, increasing investmentand scientific research work to develop new energy sources, and several other actions. The administrative approach plays animportant role in the development of Chinaʼs low-carbon economy. The carbon trading system also greatly promotes energyconservation and emission reduction, contributes to attracting investment in low-carbon technology and transforming theenergy structure and is becoming an important policy guarantee for Chinaʼs carbon emission reduction. However, at thesame time, Chinaʼs carbon trading market faces many practical challenges. For China, the task of reducing carbon emissionsthrough carbon trading alone is unrealistic. Chinaʼs current actions on carbon taxation are not broad enough to regulateemission reductions. With the implementation of carbon trading, there is a need to establish a carbon tax as a policy optionto further strengthen the regulation of emission reduction. The introduction of a carbon tax should consider the relationshipbetween economic and social development and carbon reduction and coordinate the relationship between the carbon tax andcarbon trading system on various aspects, including the field and object of taxation, tax rates, use of tax revenue and therelationship between the authorities regulating the two policies, to leverage their complementary roles.

The spatial impact of carbon trading on harmonious economic and environmental development: evidence from China.

This research explores the endogenous influence of carbon trading on economic development, the ecological environment, and the coordinated development of both using panel data from 30 Chinese provinces and cities except Tibet from 2007 to 2017. First, we provide environmental production elements to build an economic model based on the endogenous growth model, and then we employ three-dimensional graphics to conduct theoretical derivation in a more accessible and tangible manner. Secondly, we build a comprehensive index of China's coordinated economic and environmental growth in the context of carbon trading and use the coupled coordination model to determine the coordinated coupling degree of each location. Thirdly, the S-DID model is built to investigate the local and geographical implications of carbon trading. The findings demonstrate that the policy has a local impact that is notably favorable on the economic and environmental levels of each Chinese province and the coordinated growth between them. The degree of environmental optimization and the degree of coordinated development between the economy and the environment are two additional areas where the carbon trading mechanism has a strong positive geographical spillover impact. This study adds to the body of knowledge on China's carbon trading system and advances the endogenous growth hypothesis.

Energy structure upgrade and carbon emission reduction: evidence from Asian economies.

The reduction of carbon emissions has become an important climate issue worldwide. However, the diversity of carbon trading systems and the differentiation policy may generate incomparable carbon abatement costs across regions and countries. Based on the nonparametric model, this paper investigates the shadow price of carbon emissions and energy structure in 38 Asian countries from 1991 to 2019. The main findings of this paper are as follows: (1) The annual average shadow price of carbon emissions experienced a fluctuating decline for Asian countries during the period 1991-2000, followed by a continuous rise and then a fluctuating decline. (2) Industrialization may lead to a decline in carbon shadow price, while urbanization may lead to a rise in the opportunity cost of carbon reduction. (3) The carbon shadow price in countries of Asia-Pacific Economic Cooperation (APEC) is lower than that in non-APEC countries. (4) The structure of energy consumption is negatively related to marginal abatement costs, while on the contrary, the coefficients of the level of human resources are significantly positive. We also derive corresponding policy measures to promote intra-regional emission reduction.

Evolutionary Game and Strategy Analysis of Carbon Emission Reduction in Supply Chain Based on System Dynamic Model

At the 75th session of the United Nations General Assembly, China proposed the ambitious goal of achieving carbon peaking by 2030 and carbon neutrality by 2060. To investigate the impact of emission reduction behaviors of upstream and downstream enterprises in the supply chain, this paper focuses on the influencing factors of the supply chain enterprises’ emission reduction decision-making. The study aims to explore the emission reduction behaviors of these enterprises in the context of China’s carbon trading market. Using the theory of system dynamics, an evolutionary game model was developed and simulated using AnyLogic software. The simulation analyzed the effects of carbon price, subsidies, and punishment strategies on the emission reduction decisions of supply chain enterprises, providing insights into their behavioral impact. The results demonstrate that punishment, subsidy intensity, and carbon price changes all influence the emission reduction decisions of upstream and downstream enterprises. Suppliers are more sensitive to carbon price, while manufacturers are more sensitive to subsidy intensity. Additionally, the closer the equilibrium carbon price, subsidy, and market are, the shorter the time for the emission reduction probability of both enterprises to stabilize. Therefore, it is recommended that supply chain companies increase their awareness of environmental responsibility and enthusiasm for green innovation, actively respond to the carbon trading system, improve their internal subsidy system, and promote green technology innovation.