Cross-regional Transactions Research Articles

Design and Empirical Research on Cross-provincial and Cross-regional Power Transmission Pricing Mechanism Adapted to Marketized Trading in China

With the deepening of China’s electricity market reform, the cross-provincial and cross-regional power trading system dominated by government pricing has struggled to release reasonable price signals. Under a single electricity price system, transmission costs are prone to exceed the price difference between sending and receiving ends, thereby affecting the conclusion of cross-provincial and cross-regional transactions. In order to connect cross-provincial and cross-regional power transmission prices with the electricity market effectively, in this paper, a two-part transmission pricing mechanism is designed for cross-provincial and cross-regional power transmission “benchmark + floating” trading prices, and a price calculation model is established by selecting typical projects for empirical calculation to verify the effectiveness of the transmission pricing mechanism design. This research can provide reference for improving the pricing mechanism, which is conducive to promoting cross-provincial and cross-regional transactions.

Cross-regional green certificate transaction strategies based on a double-layer game model

With the implementation of the renewable energy quota system and the development of the green certificate market, the diversification of cross-region trading subjects has brought about the problem of complicating the competition and cooperative relationship between multiple subjects. This problem makes it difficult to balance the conflict of interests of multiple participating subjects in green certificate transactions, and reduces the enthusiasm for trading. To this end, this paper proposes a multi-participant decision model of cross-regional green certificate trading behavior that takes into account the uncertainty of renewable energy generation. In the model, in order to explore the potential full set of strategies of the participating subjects, the cooperative game theory is utilized to analyze the complex interaction between multiple participating subjects in the cross-regional transaction, and the cooperative game model based on green certificates is established. As the participating subjects' information about other participants and their knowledge of the game environment are limited, the decision-making behavior is uncertain. In order to more reasonably portray the subject's game behavior in the actual decision-making scenario and to solve the defect that the traditional evolutionary game model can not reflect the influence of uncertain factors, we use the stochastic evolutionary game theory to dynamically deduce the cooperative strategies of the participating subjects under the limited rationality, and at the same time, introduce the strategy influencing factors to explore the dependence relationship between strategies. In addition, in order to cope with the impact of power generation uncertainty on cross-regional trading and to solve the defects of distributionally robust fuzzy set construction which is subjective and only for the analysis of uncertainty in a single time section, it is proposed to use Bayesian multivariate nonlinear model and mixed-effects model to construct probability distribution fuzzy sets of wind and light power generation uncertainty on the basis of distributionally robust theory. Finally, based on the arithmetic example, the cooperative strategy of multi-participants in cross-regional transactions under finite rationality is deduced, and the impact of uncertainty factors on the cooperative strategy is analyzed.

The dilemma for China’s national carbon trading market: minimizing carbon abatement costs or maximizing net social benefits?

After a decade of planning and trials, China officially launched a national carbon trading in July 2021. Using a standard economic model, this study shows that an unconstrained carbon trading market would face a dilemma between minimizing pollution control costs and maximizing social benefits. We further show that this would be a significant challenge in China. Our results show that areas with higher population densities also would have higher costs for carbon reduction, and hence the polluters in those areas would be net buyers in the national market. Moreover, our analysis indicates a significantly high correlation between carbon dioxide emissions and other local pollutants. Therefore, cross-regional transactions may result in more emission of other pollutants in areas with higher population density under the unconstrained national cap-and-trade system and cause larger losses in social benefits. We call for more studies to address the issue.

Cross-Regional Transaction Path Configuration of Renewable Energy Resources by Graph Theory-Based Transmission Cost Allocation Method

For the transaction path configuration of renewable energy cross-regional consumption, there are several critical problems such as the key node identification, the maximum delivery quota, and the transmission cost allocation (TCA). To solve these problems, firstly, the simplified graph model of the ultra-high-voltage (UHV) network is constructed, and the network connectivity and the vulnerability of the key nodes are analyzed from the perspective of the system topology. Secondly, the source and sink nodes are set corresponding to the electricity seller and buyer in the power market, and the Edmonds–Karp algorithm is utilized to search for the augmenting path. Also, the maximum transmission quota of the transaction path is achieved effectively and rapidly. Finally, the social welfare is set as the optimization objective, and the optimal allocation of multiple power flows in multiple feasible transaction paths is carried out. The case study was conducted based on the 17 cross-regional transactions in China including the typical Gansu-Shanghai renewable energy consumption case. Compared to the existing TCA method, the simulation result shows that the proposed method can effectively utilize the transmission potential, decrease the overall transmission cost, and provide proper economic signals.

Social Capital, Trusting, and Trustworthiness: Evidence from Peer-to-Peer Lending

AbstractHow does social capital affect trust? Evidence from a Chinese peer-to-peer lending platform shows that regional social capital affects the trustee’s trustworthiness and the trustor’s trust propensity. Ceteris paribus, borrowers from regions with higher social capital receive larger bids from individual lenders and have higher funding success, larger loan sizes, and lower default rates, especially for low-quality borrowers. Lenders from regions with higher social capital take higher risks and have higher default rates, especially for inexperienced lenders. Cross-regional transactions are most (least) likely to be realized between parties from regions with high (low) social capital.

Cost-Economic Analysis of Hydrogen for China’s Fuel Cell Transportation Field

China has become a major market for hydrogen used in fuel cells in the transportation field. It is key to control the cost of hydrogen to open up the Chinese market. The development status and trends of China’s hydrogen fuel industry chain were researched. A hydrogen energy cost model was established in this paper from five aspects: raw material cost, fixed cost of production, hydrogen purification cost, carbon trading cost, and transportation cost. The economic analysis of hydrogen was applied to hydrogen transported in the form of high-pressure hydrogen gas or cryogenic liquid hydrogen and produced by natural gas, coal, and electrolysis of water. It was found that the cost of hydrogen from natural gas and coal is currently lower, while it is greatly affected by the hydrogen purification cost and the carbon trading price. Considering the impact of future production technologies, raw material costs, and rising requirements for sustainable energy development on the hydrogen energy cost, it is recommended to use renewable energy curtailment as a source of electricity and multi-stack system electrolyzers as large-scale electrolysis equipment, in combination with cryogenic liquid hydrogen transportation or on-site hydrogen production. Furthermore, participation in electricity market-oriented transactions, cross-regional transactions, and carbon trading can reduce the cost of hydrogen. These approaches represent the optimal method for obtaining inexpensive hydrogen.

Social Capital, Trusting, and Trustworthiness: Evidence from Peer-to-peer Lending

How does social capital affect trust? Evidence from a Chinese peer-to-peer lending platform shows regional social capital affects the trustee’s trustworthiness and the trustor’s trust propensity. Ceteris paribus, borrowers from higher social capital regions receive larger bid from individual lenders, have higher funding success, larger loan size, and lower default rates, especially for low-quality borrowers. Lenders from higher social capital regions take higher risks and have higher default rates, especially for inexperienced lenders. Cross-regional transactions are most (least) likely to be realized between parties from high (low) social capital regions.