Emission Rights Research Articles

Investigating the impacts of the EU ETS emission rights on airline environmental efficiency via a Network Environmental SBM model

Based on empirical data from 18 international airlines from 2008 to 2014, this article analyzes the impact of EU emission rights on airline environmental efficiency and calculates the airlines’ emission allowances. Then, we propose a Network Environmental Slack-Based Measure model to discuss the change in efficiency when carbon prices are set at 10, 20 and 30 Euros. The main findings are as follows: (1) Eva Air is the airline with the highest average overall efficiency. (2) For most airlines, their efficiency shows little difference from the original situation, regardless of the carbon price. (3) For airlines with large changes in efficiency, the cost or income from emission rights not only affects the operating expenses but also the fleet size.

Literature Review on Pricing of Initial Discharge Right of Sewage

Aiming at the research topic of initial pollution emission right pricing, this paper combs the literature at home and abroad, and summarizes the literature research at home and abroad. The following conclusions are drawn: the relevant research can choose the initial discharge right of sewage as the research object, and construct the pricing model of the initial discharge right of the system dynamics sewage, which can not only calculate the price of the future emission right, but also distinguish the key factors that affect the initial emission right price, and provide some reference guidance to the Government and enterprises. It helps to better grasp the price of emission right; on the other hand, it can price the emission right of different parts of the same industry. It is expected to expand the system theory system of the initial discharge right of sewage, and to provide the basis for the relevant decision of the environmental management authorities.

Study on Dynamic Model of Initial Emission Rights for Medical Sewage System

The chemical oxygen demand (COD) is selected as the index in this paper. The system dynamics method is used to analyze the emission right price of medical sewage, the boundary of the emission right price system is determined, and the system dynamics model of the initial emission right of medical sewage is constructed, in which the system is divided into water resources subsystem, population subsystem, economic subsystem and social subsystem. It is expected to expand the theory of the system modeling of the initial discharge right of medical sewage, and to provide the basis for the relevant decision of the environmental management authorities.

污水初始排放权的系统动力学模型

污水初始排放权的系统动力学模型

Distribution of carbon emission rights in China based on equity perspective

Distribution of carbon emission rights in China based on equity perspective

Climate Change Mitigation Justice and the No-Harm Principle

When translated into concrete policy, any allocation of emissions leads to the attribution of emissions rights based on distributive justice (even if the policy was previously examined in terms of utilitarianism at the philosophical level). Consequently, the distributive justice approach legitimizes the corresponding amount of emissions. If a certain level of emissions can receive emissions rights, provided they are compatible with a certain emissions budget, to allocate emissions rights when the dangerous concentration level has been overshot could understate the need to preserve the functioning of a “balanced” climate system. From the perspective of Foucault’s archaeology of knowledge, and with the purpose of assessing the epistemology of climate justice, it will be possible to question the possible importation of the mode of production of norms of social law into climate mitigation justice. Additionally, it will be questioned whether the amount of anthropogenic emissions rights can be provided by “the laws of nature” and whether and how the no‑harm principle can contribute to the epistemological relevance of the narrative of climate justice.

Low-carbon power dispatch with wind power based on carbon trading mechanism

Low-carbon power dispatching with wind power has been attracting increasing attention recently, whereas it also encounters some difficulties under carbon trading mechanism, such as the resistance to carbon emission reduction, the fairness of carbon trading, and the disturbance of wind power uncertainty. For harmonizing these contradictions, this paper presents a stochastic dynamic economic dispatch model focusing on wind power uncertainty and carbon emission rights simultaneously, which tries to minimize total electrical energy costs under uncertainty, and to meet the specific requirement of carbon emission reductions. Moreover, several traditional allocation methods for initial carbon emission rights emphasizing the equality are introduced, and the uncertainty characterizations of wind power are discussed through the scenario-generation technique. The simulation results eventually demonstrate that the operating cost for non-cooperative mode cannot be optimized as the ratio of carbon emission reductions rises; carbon trading mechanism is beneficial for lower cost under the pressure of carbon emission reduction; carbon price ranges that suit both carbon trading parties could be deduced. Synthesizing wind power uncertainty and carbon emission rights, this study is helpful for allocating the load demand of wind power integrated system to each generating unit more scientifically and reasonably based on carbon trading mechanism.

Present Situation and Prospect of China's Carbon Exchange Market and the Strategy of Carbon Exchange in Key Industries

With the development of economy and society, the world has entered a low-carbon era. As the largest developing country, China holds the largest gas emission right, and has a huge market potential for carbon emissions. This paper reviews the situation of China’s carbon emissions trading market, and describes in detail the progress of carbon trading pilots. Then, it summarizes the carbon trading rules of seven pilots and analyses the problems in China’s carbon emissions trading market. Finally. it gives suggestions for next work. Meanwhile, combined with relevant national policies, it analyses key industries with carbon emissions, the challenges faced by them in the carbon trading market, and also offers strategies for key industries.

Cost-Sharing Mechanisms for A Wood Forest Product Supply Chain under Carbon Cap-and-Trade

We consider a wood forest product supply chain consisting of a forestry company and a wood forest products manufacturer, where the forestry company produces timber and forestry carbon sinks, and the manufacturer consumes timber and carbon emission rights. A Stackelberg model is adopted to investigate the forest scale and carbon emission reduction decisions of the supply chain. We design and analyze the carbon emission reduction cost-sharing (ERCS) mechanism and carbon sink cost-sharing (SCS) mechanism, respectively. The result shows that both contracts can help the wood forest product supply chain to achieve higher profits. The ERCS mechanism may encourage the manufacturer to increase emission reduction level and the forestry company to expand the forest scale. The SCS mechanism is beneficial to the expansion of carbon sink forests; however, it may lead to the manufacturer decreasing investment in carbon emission reduction measures.

The Current State of the Monetary Sphere of Kazakhstan, Kyrgyzstan, Tajikistan within the Framework of Changes in the Legislation

The article discusses the current state of the monetary – credit sphere in the former states of the Soviet Union. The authors note that, the collapse of the Soviet Union in 1991, which led to the defragmentation of the monetary system, is an important event in the formation of the financial sector in Central Asia. The single monetary and financial system, which was adapted to the conditions of the planned economy, had started rapidly falling apart. The result was a break of the traditionally existing economic ties.
 It is important to note that the monetary policy has a direct impact on the major macro-economic indicators such as GDP, employment and the level of prices. It is thus important to have a solid legal base. The accelerated formation of national monetary systems in Central Asian states has required the creation of genuinely independent emission center as the Central Banks of Central Asia. Since 1994, Central Asian governments have begun to carry out macroeconomic regulation, mutual settlement in the economy and emission activity.
 The next step was a reform of the banking system in Central Asia. At the beginning of the independence of the Central Asian states a legal framework was created and a transition was made to a two-tier banking system. According to the adopted laws in the countries of Central Asia, a two-tier banking system was formed, where the upper level was represented by the State Bank of the region (with emission rights), and the bottom were - commercial and government specialized. Creating second tier banks was a response to the needs of the Central Asian countries.

The True Impacts of and Influencing Factors Relating to Carbon Emissions Rights Trading: A Comprehensive Literature Review

As an emissions abatement mechanism focusing on property rights theory and market trading methods, carbon emissions rights trading plays an important role in achieving low-carbon economic development, which has already garnered broad worldwide recognition. In the aftermath of the implementation of an initial, seven-province/city, carbon emissions rights trading pilot project, in 2017 China launched a carbon emissions trading rights market on a national basis. The authors of this paper provide a theoretical basis for research into this trading market’s impacts on energy conservation, reduction of emissions, and on economically sustaining, healthy development, from the following four perspectives: the history of the market’s development, a comparison of carbon reduction mechanisms associated with differing carbon tax levies, the effects of carbon emissions rights trading’s implementation, and the influencing factors on such trading. They systematically summarize, sort out, and evaluate the most recent, related carbon emissions rights trading literature, and then based on this analysis offer up insights regarding possible developments and refinements of future carbon emissions rights trading research.

Optimization analysis of carbon emission rights allocation based on energy justice—The case of China

Carbon emission rights allocation affects the effective operation of carbon trading system, and then the achievement of energy saving and emissions reduction objectives. Reasonable allocation scheme should meet the principle of justice. Carbon emission rights allocation based on energy justice is a novel and worth discussing subject. This paper explores the optimization of carbon emission rights allocation based on energy justice. The justice-based model is built with the aid of Gini coefficient. The way to optimize allocation scheme with constraints of population, ecological productive land, fossil energy resources and GDP is discussed. Results show that fossil energy resources and ecological productive land play more important role in the allocation. The prime example is Inner Mongolia, its quota percentage change reaches up to 150.01%. As the GDP and population growth rate are fixed in a given interval, the quota allocation in eastern China shows some interesting results. When the GDP growth rate is 6.25%, the quotas of eastern China will not change with varying population growth rate. The allocation will enter a relative stable stage as the population growth rate is greater than or equal to 6.4‰. These results can provide China with experience to deal with the new problem appeared in carbon trading system like two-children policy and the new normal of economic growth.

Meta-Modeling to Assess the Possible Future of Paris Agreement

In the meta-modeling approach, one builds a numerically tractable dynamic optimization or game model in which the parameters are identified through statistical emulation of a detailed large scale numerical simulation model. In this paper, we show how this approach can be used to assess the economic impacts of possible climate policies compatible with the Paris Agreement. One indicates why it is appropriate to assume that an international carbon market, with emission rights given to different groups of countries will exist. One discusses the approach to evaluate correctly abatement costs and welfare losses incurred by different groups of countries when implementing climate policies. Finally, using a recently proposed meta-model of game with a coupled constraint on a cumulative CO2 emissions budget, we assess several new scenarios for possible fair burden sharing in climate policies compatible with the Paris Agreement.

New institutional framework for global climate change prevention

Purpose. This conceptual paper takes the firms’ perspective about practical implications of the theory of the global commons. Global commons are the areas and resources defined as those being beyond national jurisdictions. Their governance, today, however, is still coordinated largely by national states.
 Design/Method/Approach. This paper introduces a firm's perspective based on the global commons approach.
 Findings. At present, companies deal with national governments concerning their emissions and, perhaps, the international emissions trading scheme. Theory argues about the need to shift the responsibility from the national to global governmental levels, i. e. the United Nations.
 Theoretical implications. Given the input orientation put forward by this approach, companies – except fossil fuel extractors – would not actually have to deal with any governmental or regulatory bodies but can focus their capabilities on what they are best at: serving the needs of their customers. Fossil fuel extracting companies, in order to sell these fossil fuels, will have to purchase the amount of emission rights before they sell the fuel into the economic cycle. This approach establishes an economic incentive for companies to employ technologies with low or zero fossil fuel consumption while making the transition path predictable. The underlying concept, therefore, can also be referred to as an immissions scheme (from Latin immissio, “to let in”).
 Originality/Value. Governing a global common through national structures is inappropriate and does not reflect the nature of the underlying resource. This paper proposes a solution to the problem of global climate change.
 Further research. Further research is needed to address the effect of this strategy on different industries, and how those are affected based on the degree to which they employ fossil fuels.
 Paper type – сonceptual.

Estimation of marginal abatement costs of CO2 in Chinese provinces under 2020 carbon emission rights allocation: 2005-2020.

The calculation of marginal abatement costs of CO2 plays a vital role in meeting China's 2020 emission reduction targets by providing reference for determining carbon tax and carbon trading pricing. However, most existing researches only used one method to discuss regional and industrial marginal abatement costs, and almost no studies predicted future marginal abatement costs from the perspective of CO2 emission efficiency. To make up for the gaps, this paper first estimates marginal abatement costs of CO2 in three major industries of 30 provinces in China from 2005 to 2015 based on three assumptions. Second, based on the principle of fairness and efficiency, China's 2020 emission reduction targets are decomposed by province. Based on the ZSG-C-DDF model, the marginal abatement costs of CO2 in all provinces in China in 2020 are estimated and compared with the marginal abatement costs of 2005 to 2015. The results show that (1) from 2005 to 2015, marginal abatement costs of CO2 in all provinces show a fluctuating upward trend; (2) compared with the marginal abatement costs of primary industry or tertiary industry, most provinces have lower marginal abatement costs for secondary industry; and (3) the average marginal abatement costs of CO2 for China in 2020 are 2766.882 Yuan/tonne for the 40% carbon intensity reduction target and 3334.836 Yuan/tonne for the 45% target, showing that the higher the emission reduction target, the higher the marginal abatement costs of CO2. (4) Overall, the average marginal abatement costs of CO2 in China by 2020 are higher than those in 2005-2015. The empirical analysis in this paper can provide multiple references for environmental policy makers.

Initial Provincial Allocation and Equity Evaluation of China’s Carbon Emission Rights—Based on the Improved TOPSIS Method

As the world’s largest carbon emitter, China considers carbon emissions trading to be an important measure in its national strategy for energy conservation and emissions reduction. The initial allocation of China’s carbon emissions rights at the provincial level is a core issue of carbon emissions trading. A scientific and reasonable distinction between the carbon emission rights of provinces is crucial for China to achieve emissions reduction targets. Based on the idea of multi-objective decision-making, this paper uses the improved Technique for Order Preference by Similarity to an Ideal Solution (TOPSIS) method to allocate China’s initial carbon emission rights to the provinces and uses the Gini coefficient sub-group decomposition method to evaluate the fairness of the allocation results. First, the results of a theoretical distribution show that in the initial allocation of carbon emission rights, a large proportion of China’s provinces have large populations and high energy use, such as Shandong Province, Jiangsu Province, Hebei Province and Henan Province; the provinces with a small proportion of the initial allocation of carbon emissions consist of two municipalities, Beijing and Shanghai, as well as Hainan Province, which is dominated by tourism. Overall, the initial allocation of carbon emission rights in the northern and eastern regions constituted the largest proportion, with the south-central region and the northwest region being the second largest and the southwest region being the smallest. Second, the difference between the theoretical allocation and the actual allocation of carbon emission rights in China was clear. The energy consumption of large provinces and provinces dominated by industry generally had a negative difference (the theoretical allocation of carbon emissions was less than the actual value), while Qinghai, dominated by agriculture and animal husbandry, showed a positive balance (the theoretical allocation of carbon emissions was greater than the actual value). Third, the results based on the Gini coefficient showed that the carbon emission right allocation scheme proposed by the Topsis model in this paper has good fairness. Fourth, the economic development structure, technological innovation level, carbon emissions and other indicators have certain impacts on the fairness of the initial allocation of carbon emission rights. Finally, this paper offers some suggestions on energy conservation and emissions reduction in China, taking four aspects into account: regional disparities, technological innovation, industrial structure and the initial allocation of carbon emission rights. This paper could be helpful to provide a reference for the rational allocation of China’s carbon emission right.

The Shadow Prices of Carbon Emissions in China’s Planting Industry

The shadow prices of carbon emissions are essential for assessing emission abatement costs and formulating environmental public policies. By adopting the directional distance function method, this paper studies the shadow prices of carbon emissions caused by three main emission sources from China’s planting industry for a panel of 30 provinces spanning the period 1997–2014. We find that there is considerable regional heterogeneity in the shadow prices, and, of the 30 provinces, 23 are characterized by decreasing trends while only seven are on the rise over time. This implies that there is inefficiency of resource allocation among provinces, and the capacity for abatement increases during the observed period. The results support the following recommendation: It might be worth attempting to bring agriculture in China into line with its emission rights trading scheme, not only to help motivate the reduction of emissions but also to improve resource allocation. Also, policymakers are required to enhance regional cooperation and facilitate carbon-reduction technology transfer, to improve the immaterial production factors’ contribution to planting industry growth.

Beyond the critique of carbon markets: The real utopia of a democratic Climate Protection Agency

This paper discusses the possibility to go beyond the critique of carbon markets by offering an alternative, democratic, model for allocating greenhouse gas emissions rights, rather than one based on the ability to pay. Taking stock of the substantial critique that have been made of markets for allocating such rights, it seeks to offer a non-market based, yet realist, mechanism. This non-market mechanism is grounded in the literature on democratic economic planning as applied to environmental questions. It delineates the proposition for a Climate Protection Agency through which competing interests and visions could be represented – and transformed – in the process of allocating limited rights. This alternative model is offered in the spirit of “real utopias”. Discussions of the desirability, viability, and achievability of the model are made by way of comparison with a similar – but actually existing – model, namely the distribution of land-use rights in Switzerland.

A Study of the Dynamic Mechanisms and Effects of Allocating Emissions Permits under Endogenous Growth

The allocation of carbon emissions permits is a major component of the design of carbon trading schemes. The choice of allocation mechanisms can influence the long-term growth path, which in turn affects the effectiveness of the emissions reduction policy. The findings of this article indicate that while a static allocation mechanism can maximize current yields, it leads to a slowdown in output growth under endogenous economic growth. To optimize intertemporal economic output, the allocation of carbon emissions will need to be dynamically adjusted. In the absence of complete information, an output-oriented adjustment to the allocation of emissions rights in different periods can guide market trading so that it approaches a long-term optimal growth path.

A Study on the Law of Cyclical Fluctuation of Carbon Price—Empirical Evidence from EU ETS

Based on the trading data of the Bluenext and the European Climate Exchange (ECX), this paper analyzes the cyclic price fluctuations of the EU carbon emission rights by means of the maximum entropy spectrum and wavelet variance. The results show that: 1) there are obvious cyclical price fluctuations in the EU carbon trading market, with the longest cycle being 33 months and the shortest 5.7; 2) researches on the factors that affect the cyclical price fluctuations of carbon emission rights manifest that power prices (POWER) exert the greatest implication on the prices of carbon emission rights, followed by coal prices (COAL). For every 1% change in POWER, the price of carbon emission rights changes 10.95% towards the same direction. For every 1% change in COAL, the price of carbon emissions changes 9.28% towards the opposite; 3) research based on variance decomposition demonstrates that electricity prices contribute the most to the changes of the price of carbon emissions, and the variance contribution rate is 13% at a lag cycle of 30 days.