Emission Rights Research Articles

Techno-economic analysis of microalgae related processes for CO2 bio-fixation

The current need to reduce greenhouse gas emissions is pushing the incorporation of technologies to achieve industrial decarbonisation in Europe. The present work develops a techno-economic tool that analyses different scenarios to assess microalgae production in some foreseeable situations, and determines the ones in which the contribution of CO2 biofixation would be relevant. The biomass production cost ranged between 0.41 and 13.06 €/kg. It was also possible to recover 0.03–0.1 €/kg CO2 depending on its temporal variation and the amount of biomass produced. This analysis aims to identify the technologies and operational conditions viable for the different applications. According to the scenarios considered, microalgae technology could be competitive if the emission rights market reaches expected costs of approximately 50 €/t CO2 in the near future (2030). Otherwise, microalgae related processes can be also reliable for different medium- and high-value applications, but only if adequate technologies and operational conditions are considered. The information here provided supports decision making processes for microalgae based processes.

Economic assessment of the development of CO2 direct reduction technologies in long-term climate strategies of the Gulf countries

This paper proposes an assessment of long-term climate strategies for oil- and gas-producing countries—in particular, the Gulf Cooperation Council (GCC) member states—as regards the Paris Agreement goal of limiting the increase of surface air temperature to 2°C by the end of the twenty-first century. The study evaluates the possible role of carbon dioxide removal (CDR) technologies under an international emissions trading market as a way to mitigate welfare losses. To model the strategic context, one assumes that a global cumulative emissions budget will have been allocated among different coalitions of countries—the GCC being one of them—and the existence of an international emissions trading market. A meta-game model is proposed in which deployment of CDR technologies as well as supply of emission rights are strategic variables and the payoffs are obtained from simulations of a general equilibrium model. The results of the simulations indicate that oil and gas producing countries and especially the GCC countries face a significant welfare loss risk, due to “unburnable oil” if a worldwide climate regime as recommended by the Paris Agreement is put in place. The development of CDR technologies, in particular direct air capture (DAC) alleviates somewhat this risk and offers these countries a new opportunity for exploiting their gas reserves and the carbon storage capacity offered by depleted oil and gas reservoirs.

The impact of Renewable Portfolio Standards on carbon emission trading under the background of China’s electricity marketization reform

Carbon emission trading (CET) is an important mechanism for China to achieve carbon emission reduction targets and sustainable development. The success of its implementation depends on the scientific institutional supply design. At present, China is actively promoting the implementation of electricity marketization reform and Renewable Portfolio Standards (RPS), which would change the institutional environment for manufacturers’ decision-making and trading, thus impacting CET. Accordingly, this paper aims to establish an evaluation model using the system dynamics method to simulate and evaluate the impact of RPS on CET under the background of electricity marketization reform by designing and combining different policy scenarios. The results show that: (1) The impact of electricity marketization reform and RPS on carbon trading is mainly reflected in carbon emission rights’ demand, trading volume, trading price and power generation of manufacturers. (2) Under the situation of marketed electricity price and the absence of RPS, various indicators of the CET market are superior to other policy combinations. (3) Marketed electricity price can effectively stimulate manufacturers’ demand for carbon emission rights, increase trading volume, and have a positive impact on CET. However, the implementation of RPS weakens the demand for emission rights, reduces manufacturers’ power generation and profit, and harms CET.

NB–IoT를 활용한 삼호철새마을 태양광 모니터링 구축을 통한 온실가스 저감에 관한 연구

In this study, solar monitoring was established in 492 households in Samho Migratory Bird Village, Nam-gu, Ulsan Metropolitan City, using Low Power Wide Area (LPWA) transmission technology (NB-IoT). As a result, the normal operation of solar power monitoring power generation of 492 households was more than 80% and power generation shutdown was less than 20%. To solve this problem, the results of the distributed access method and the Reference Signal Received Power (RSRP) are shown. In addition, the terminal cost of the dedicated communication gateway for NB-IoT is inexpensive, and installation is simple. This indicates total savings for each progressive stage according to the standby power saving effect, with and an estimated cost savings of 1 million won. Calculation of GHG emissions and comparative analysis showed that the a GHG reduction of 6,200 tons and a 250 million won expected profit from the sale of emission rights. Establishment of a solar power generation system and monitoring using Internet of Things Technology (IoT) is expected at the local level.

Study on the distribution of PM emission rights in various provinces of China based on a new efficiency and equity two-objective DEA model

Under the premise that the total emissions of PM(particulate matter) of air pollution is established, the allocation of PMemission rights in various provinces of China is the feasible way to governance the ash haze. In this paper, a data envelopment analysis (DEA) model that takes into account the objectives of efficiency and equity is constructed. On the basis of evaluating the PMemission performance of various provinces in China, the corresponding allocation steps are put forward. Then, the results of theDEAmodel and information entropy are compared. The research shows that: (1) under the same constraint conditions, the emission right of PMis allocated with DEA model, which leads to lower cost, less fluctuation of distribution amount and higher overall national performance. (2) the populationGinicoefficient method is used to evaluate and it is found that the Gini coefficient value is smaller according to the distribution results of DEA model, indicating that the PM emission right amount is more fairly distributed among provinces. The functions of this paper are as follows: (1) a new double-objective DEA model is constructed, which is suitable for multi-agent performance evaluation with multiple objectives; (2) a scheme to allocate PM among provinces is proposed, which can provide reference for the practice of haze reduction in China

Evaluating the employment effect of China’s carbon emission trading policy: Based on the perspective of spatial spillover

With the gradual strengthening of environmental supervision, how to coordinate the relationship between environmental protection and full employment has become an urgent problem. This paper takes China’s carbon emission trading policy as the research subject, and evaluates the employment effect of carbon emission trading policy from the perspective of micro enterprises under the premise of considering the spatial spillover effect. This paper aims to verify and evaluate the spatial spillover effect of China’s carbon emission trading pilot policy on labor demand of enterprises, and study the effect of environmental policies on the employment market in China. Firstly, from the theoretical point of view, comparisons among the differences of the average employment effect, spillover effect and total effect coefficient of carbon trading right policy are conducted under the condition of spillover effect or not. Secondly, from the empirical perspective and relaxing the STUVA conditions, a Triple Difference Model is constructed to evaluate the impact of carbon emission trading policy on the labor demand of enterprises by using the panel data of China A-share listed companies in Shanghai and Shenzhen from 2008 to 2017. Thirdly, this paper further uses the synthetic control method to analyze the employment effect differences of carbon emission trading policies in different pilot areas of China. The results show that the carbon emission trading policy in China has an about 10 percent positive spillover effect on the neighboring provinces in pilot areas. Moreover, the results indicate that China’s carbon emission trading policy has generated some employment dividend, and the total effect is about 11.5 percent when the ratio of individual sample is considered. In addition, the impact of carbon emission trading policy on employment is gradually increasing, and the employment effect of carbon trading policies in different pilot areas of China is quite dissimilar. The findings of this paper confirm the positive employment effect of China’s carbon emission trading policy, and have important policy implications for the further promotion of the national carbon emission trading market. At the same time, it helps to clarify the relationship between environmental protection and full employment. • Verifies and evaluates the spatial spillover effect of carbon trading policy. • Constructs a Triple Difference Model for evaluating the impact of carbon trading policies on the labor demand of enterprises. • Finds about 10% positive spillover effect of the carbon emission rights trading policy in China. • Shows about 11.5% total employment effect of carbon emission trading policy when the individual sample ratio was considered.

Personal carbon trading in mobility may have positive distributional effects

Personal carbon budgets and trading (PCT) is an innovative and ground-breaking downstream policy, which locates rights to and responsibilities for emissions at the individual level. In addition to emission reductions, it may also provide a method for earning and evening out the income distribution. The economic impacts of PCT for a single person depend greatly on the method of allocating emission rights. Currently, it is not known how the economic impacts for various income levels differ between different allocation methods. Herein, we present a PCT model for mobility and various methods for allocating emissions rights. The economic impacts on various income levels are calculated based on Finnish statistical mobility data and using a PCT pilot in the city of Lahti. Results show that greenhouse gas emissions from mobility are lower for people with a low income, and PCT could provide additional income and even out the income distribution. The financial benefits and payoffs depend on the carbon cap, carbon floor price and emission right allocations. The results of this study provide basic information on how PCT can be put into action, what options there are for emission allocation, and how PCT can be used to even out the income distribution.

A story of its own: creating singular gift-commodities for voluntary carbon markets

ABSTRACT Carbon offsets were designed to be a universal good for a global market, tradable with any form of carbon emission anywhere in the world. This paper shows that emission rights, designed as perfect commodities, do not pass their envisioned markets all too easily. After multiple market failures, producers and traders needed to add something to their offsets that define their value by exceeding the mere storage of carbon in trees or soil: a story. In voluntary markets, stories create a close relation between the good, its context of origin as well as the customer's context. By doing so, they juggle carbon offset through complex entanglements of value creation, modes of exchange, measurement practices and market demand. Carbon credits do not only take on a very singular nature but carry many characteristics of gifts at the same time. This paper thus aims to follow carbon offsets in and between their economic forms: commodities, singularities and gifts. This will be done by closely looking at the role of stories and how formatting processes, as well as the formation of goods are created and reflected in them at the same time.

Research on confirmation and measurement of Carbon Emission Rights

This paper first analyzes the research background of accounting for carbon emission rights and the research status at home and abroad, and outlines the concept of carbon emission rights and three theoretical foundations, namely, sustainable development theory, environmental accounting theory, and stakeholder theory. Secondly, respectively from the four main viewpoints of assets recognized as inventories, inventories, intangible assets, transactional financial assets and new assets, the accounting confirmation of carbon emission rights is explored, from the aspects of measurement attribute selection, initial measurement and subsequent measurement. Carbon emission rights accounting measurement; Finally, a brief analysis of the problems of carbon emission rights information disclosure and recommendations.

Analiza ekonomske opravdanosti investiranja u solarnu elektranu sa vertikalno postavljenim bifacijalnim fotonaponskim modulima u perspektivnim uslovima slobodnog tržišta

One way to combat climate change is to trade with carbon dioxide emissions rights, which in practice are emitted significantly by energy companies. Globally, this trade takes place through various global, regional and local mechanisms. Some of these mechanisms have already been implemented in the Republic of Serbia, while others have yet to be implemented, such as the EU Emissions Trading System (EU ETS). A prerequisite for participation in these mechanisms is the existence of an appropriate regulatory framework through which the trade of carbon dioxide emissions rights could be freely conducted in the Republic of Serbia. Since such regulatory framework has not yet been established in the Republic of Serbia, this article intends to show the relevant global mechanisms with a focus on EU legislation, as well as to show the potential challenges that participants in the energy market could potentially face if they want to trade carbon dioxide emissions rights within the existing legislative framework in the Republic of Serbia.

Between- and Within-Country Distributional Impacts from Harmonizing Carbon Prices in the EU

This paper examines the distributional impacts from (i) harmonizing prices for carbon dioxide emissions across sectors and EU countries and (ii) using alternative rules for carbon revenue distribution. We develop a numerical multi-country multi-sector general equilibrium model of the EU-27 economy which resolves household income deciles, based on micro-survey data on expenditure and income, and markets for fossil fuels, electricity, and (EU-wide and national) tradeable emissions rights. We find that carbon price harmonization yields efficiency gains at the EU level. The distributional effects between countries vary and depend largely on the redistribution of carbon revenues. Based on the rules currently in place in Phase IV of the EU ETS, efficiency gains flow disproportionately to low-income countries. Within-country incidence is progressive or neutral for most countries when revenue redistribution is ignored, and is not much affected by carbon price harmonization. Per-capita-based revenue redistribution rules lead to strong progressive outcomes and yield gains for low-income households. Evaluating different policy options using a social welfare function that incorporates inequality aversion suggests that there is no trade-off between efficiency and equity in harmonizing carbon prices in the EU economy.

Provincial distribution of China's carbon emission rights and assessment of its emission reduction potential under the Paris Agreement

Provincial distribution of China's carbon emission rights and assessment of its emission reduction potential under the Paris Agreement

Robust Estimation of Marginal Abatement Cost of Water Pollutant: Evidence from Yangtze River Basin

Based on the econometric method of bootstrap for 1000 times, this study estimated the marginal abatement cost of water pollutant, COD and NH3-N, for 9 provinces and 2 municipalities in the Yangtze River Basin from 2001 to 2017 by building a robust estimation model. We found that the marginal abatement cost increases at an average annual rate of 19.47%. The marginal abatement cost in Jiangsu and Sichuan are significantly higher than other regions. Differences in marginal abatement cost make it possible to trade emission rights between regions.

Between- and Within-Country Distributional Impacts from Harmonizing Carbon Prices in the EU

This paper examines the distributional impacts from (i) harmonizing prices for carbon dioxide emissions across sectors and EU countries and (ii) using alternative rules for carbon revenue distribution. We develop a numerical multi-country multi-sector general equilibrium model of the EU-27 economy which resolves household income deciles, based on micro-survey data on expenditure and income, and markets for fossil fuels, electricity, and (EU-wide and national) tradeable emissions rights. We find that carbon price harmonization yields efficiency gains at the EU level. The distributional effects between countries vary and depend largely on the redistribution of carbon revenues. Based on the rules currently in place in Phase IV of the EU ETS, efficiency gains flow disproportionately to low-income countries. Within-country incidence is progressive or neutral for most countries when revenue redistribution is ignored, and is not much affected by carbon price harmonization. Per-capita-based revenue redistribution rules lead to strong progressive outcomes and yield gains for low-income households. Evaluating different policy options using a social welfare function that incorporates inequality aversion suggests that there is no trade-off between efficiency and equity in harmonizing carbon prices in the EU economy.

Nonlinear relationship between carbon market and energy market

This paper divides the energy market into energy futures market and new energy stock market. At the same time, the closing price of Shenzhen carbon emission rights is used to represent the carbon market price, the energy futures composite index of China Securities Exchange is used to represent the energy futures market price, and the stock price of new energy listed companies is used to represent the new energy stock market price. VAR model and MSVAR model are used to empirically study the relationship between the three variables and the nonlinear relationship between them. VAR model results show that there will be more complex relationship among carbon market price, energy company stock price and energy futures price. MSVAR model shows that the energy futures market, new energy stock market and carbon market present nonlinear and structural changes, and MSVAR model can better explain the nonlinear relationship among the three markets than traditional VAR model.

Power-to-gas-based VPP Stochastic Scheduling Optimization Model in View of Carbon Emission Constraints

Combining P2G and virtual power plant (Virtual power plant, VPP), this paper proposes a new concept of electrical interconnection virtual power plant (Power-to-gas-based VPP, GVPP). In addition, this paper proposes a GVPP low-carbon economic dispatch optimization model considering carbon emission rights trading. Furthermore, in view of the strong uncertainty of wind power and PV power generation in GVPP, the information gap decision theory is used to measure the uncertainty tolerance threshold of decision makers under different expected target deviations. In addition, a GVPP near-zero carbon random scheduling optimization model is established under the conventional and worst-case scenarios. In order to verify the feasibility and effectiveness of the proposed model, a 9-node energy hub was selected as the simulation system. The results show that: (1) GVPP can coordinate and optimize the output of electricity-to-gas and gas turbines according to the difference in gas and electricity prices in the electricity market and the natural gas market at different times. Moreover, it can use the two-way conversion of gas and electricity energy to form an electricity-gas-electricity cycle, thereby improving the system’s clean energy absorption capacity, reducing its own carbon emissions and the volatility of net output. (2) The IGDT method can be used to describe the impact of wind and wind uncertainty in GVPP. Decision makers can obtain the maximum tolerance for wind and wind uncertainty by setting a reasonable expected target deviation coefficient. For example, when the expected target deviation coefficient is 0.5, the corresponding degree of uncertainty is 0.142. In the worst scenario, the scheduling results obtained by this method are in line with the actual scheduling experience, which reflects the effectiveness of the method in this paper. In summary, the models and methods presented in this paper can be used to formulate optimal scheduling decision-making schemes for GVPP considering carbon trading and uncertainty.

Analysis of the Correlation and Regional Distribution of Plastic Waste Pollution

Plastic has brought great convenience to people’s lives, but it has also brought severe environmental pollution to the world. It is almost impossible to break down entirely in nature, and plastic waste, whether in rivers, oceans, or on land, can persist in the environment for centuries. The problem of plastic waste disposal has caused worldwide concern. It is necessary to reduce the production of plastic products through global cooperation effectively. However, achieving this goal will also involve some unexpected issues, such as controlling the adverse economic impact of plastics, and the rationality and fairness of the distribution of responsibilities between different countries. This paper collects massive data and takes China as an example to study the impact of plastic output reduction on China’s Express industry and the plastics manufacturing industry using multivariate regression. This paper summarizes the positive and negative effects of plastic waste reduction. Given the distribution and management of national and regional plastic waste responsibilities, the global carbon emission rights distribution method is used for reference. The comprehensive index allocation method is used to deal with the problem of both fairness and efficiency relatively. What is more, based on the conclusions, this paper also provides suggestions for a global joint response to plastic waste.

Dynamic tail dependence on China's carbon market and EU carbon market

<abstract> <p>This study explores the dynamic relationship between the European carbon emission price (EUA) and the Shenzhen carbon emission price (SZA) in the time and frequency domain. Since they represent major carbon emission rights prices in the markets, they show a close correlation and tail correlation between them. Given the current global implementation to reduce carbon economy and China's implementation of a dual-carbon policy, it is of great value to explore the dynamic relationship between the two major carbon markets. Firstly, this paper uses a wavelet method to decompose the returned sequence into different frequency components to certify the dependent construction under different time scales. Secondly, this paper uses a wide range of static and time-varying link functions to describe the tail-dependent. The empirical results show that under different time scales, the dependence construction between EUA and SZA has significant time variation. The results of this study have important policy implications for understanding the transmission of carbon prices between different markets, as well as for investors and policy makers.</p> </abstract>

배출권 과다배분 하에서의 탄소효율성과 기업성과의 관계 분석

배출권거래제 1차 계획기간 동안 모든 배출권이 무상배분 되면서, 실제 배출량보다 배출권의 수량이 더 많은 현상이 발견되었다. 이러한 배출권 과다배분은 기업에게 불로소득(windfall profit)을 제공하며, 기업의 탄소효율성 개선을 억제할 수 있다. 본 연구는 배출권거래제에 참여하는 363개의 상장기업을 대상으로, 배출권거래제 참여 이후 탄소비효율적인 기업의 수익률이 유의적으로 더 높았는지를 살펴보았다. 분석결과, 배출권거래제 시행 직후 탄소비효율적인 기업의 평균 수익률이 더 높았으며, Fama-MacBeth 분석 및 GRS 검정 등을 살펴보더라도 이러한 효과는 유의했다. 이상의 결과를 토대로 볼 때, 무상배분 중심의 배출권거래제 구조에서 과다한 배출권이 배분된다면 기업의 탄소효율성 개선을 저해할 수 있다. 즉, 탄소효율성이 낮은 기업들이 오히려 수익을 얻을 수 있는 역진적인 문제가 발생할 수 있다.

A cooperative governance model for SO2 emission rights futures that accounts for GDP and pollutant removal cost

Due to the cross-regional mobility of air pollution, the traditional governance mode has been difficult to implement effectively. To solve the problem of excessive pollution governance costs, we determined the spot price of emission futures with a pricing model based on an arbitrage-free interval, and constructed a dual-objective optimization model that accounts for both GDP and the pollutant removal cost. By comparing the optimal removal volumes for each cooperator with the national allocation of removal quotas, we divided actors into sellers and buyers of cooperative emission rights based on futures trading. Finally, we used an asymmetric Nash negotiation model to distribute the benefits of cooperation. To demonstrate the approach, we used China’s Beijing-Tianjin-Hebei region as a case study, and found that the cooperative governance strategy can help to solve the air pollution problem. Compared with the independent autonomy model of the futures market, the Cooperative Governance Model (CGM) increased the GDP of the Beijing-Tianjin-Hebei region by 22.143 × 109 Yuan, an increase of 0.3 %, and decreased the removal cost by 124.030 × 106 Yuan, a decrease of 0.4 %. Our results provide a reference for policy decisions on collaborative air pollution control, and can be used to promote collaborative air pollution control in other regions.