Greenhouse Gas Emission Trading Scheme Research Articles

Impact of GHG-ETS on industrial effluent discharge in the Pearl River Delta

Analyzes the impact of greenhouse gas emissions trading scheme (GHG-ETS) by comparing data from the two deltas in China from 2008 to 2019, it shows that implementation of the GHG-ETS significantly increases the total amount of regional industrial effluent discharge.

Climate Risk, Stock Crash Risk, and Greenhouse Gas Emission Trading Scheme: Evidence From Korea

This study examines the relationship between climate risk and stock crash risk and the moderating effect of greenhouse gas emission trading scheme (ETS). Numerous studies have tested stock price crash risk measured by the negative skewness of return distributions in the areas of internal governance mechanism. While interest in environmental performance for sustainable growth of firms has increased, there are no studies on the effect of climate risk on stock crash risk. Thus, we find that climate risk (a firm’s greenhouse gas emissions and energy consumption) increases stock crash risk, and the positive effect of climate risk on stock crash risk is weakened after introduction of the emission trading scheme. This study theoretically extends the literature on the empirical determinants of stock crash risk, and practically provides investors with proven information about whether climate risk is worth considering during investment decisions. Furthermore, at the level of government policy, we can suggest that a monitoring system is needed to mitigate potential information asymmetry problems in firm with high climate risk.

Comparative analysis of exergy- and enthalpy-based allocation methods for cogeneration businesses in the industrial complex of South Korea

As greenhouse gas (GHG) reductions have become a major global issue in energy industry, interest in GHG emission trading schemes (ETSs) has increased. In this study, an ETS for cogeneration businesses in the industrial complex of South Korea is discussed. In the cogeneration businesses, power generation is related to the quality of supplied heat which is determined by the industrial heat demand and should be different levels of heat required to the demand side. However, Alternative Generation Method (AGM) or Power Bonus Method (PBM), the popular enthalpy-based methods, cannot reflect the quality of heat properly since it deems the weight for the amount heat highly, little consideration for quality. To reflect the quality of heat, we compared the following three exergy-based calculation methods; Carnot method, Exergy Efficiency Method (EEM), and Exergy-based Power Bonus Method (EPBM). An ideal case was used to evaluate the variation in allowances produced by the allocation methods for different supply temperatures of a combined heat and power (CHP) plant. Then, a case using real data from cogeneration businesses in the industrial complex of South Korea was analyzed. According to the evaluation, EEM was found to be the most appropriate method for managing the cogeneration businesses.

Podstawa traktatowa przyjmowania aktów prawa pochodnego z dziedziny środowiska i energii w prawie UE

Despite the considerable volume of the Court of Justice of the European Union (CJEU) case-law on Treaty basis for secondary legislation, the claim that any doubts concerning the choice of the Treaty basis for secondary legislation in the area of environment and energy in the EU law have been clarified is incorrect. On several occasions, the choice of the proper legal basis for such a legal act gave rise to serious doubts. It was unclear whether the subject matter of the act determined the application of Article 192(1) TFEU (ordinary legislative procedure) or Article 192(2), first paragraph of the TFEU (special legislative procedure).
 The aim of this article is to analyse the control criteria for the check of the Treaty basis for secondary legislation in the area of environment and energy conducted by the CJEU. This issue is considered in a broader context of the Treaty provisions, practice and the CJEU case law. The utmost attention is given to the judgement of the Court of Justice of the European Union issued on 21 June 2018 in the case C-5/16, Republic of Poland v European Parliament and Council of the European Union, where the Court dismissed the action for annulment of the Decision (EU) 2015/1814 of the European Parliament and of the Council of 6 October 2015 concerning the establishment and operation of a market stability reserve for the Union greenhouse gas emission trading scheme and amending Directive 2003/87/EC.
 The Author of the article comes to the conclusion that the Court, when reviewing the choice of the Treaty basis for a legal act, considers mainly its purpose and content, while the likely impact is of secondary importance. According to the Author, the judgement of the Court in the case C-5/16, Republic of Poland v European Parliament and Council of the European Union is likely to impede the application of Article 192(2)(c) TFEU (special legislative procedure) as a proper legal basis for legal acts in the area of environment which may affect a Member State’s energy mix.

Case Review on the Decision of First Instance on the Administrative Litigation Regarding the Greenhouse Gas Emissions Trading Scheme – Focusing on the third party litigation in the cement industry (Seoul Administrative Court 2015GUHAP55462 Decision) –

Case Review on the Decision of First Instance on the Administrative Litigation Regarding the Greenhouse Gas Emissions Trading Scheme – Focusing on the third party litigation in the cement industry (Seoul Administrative Court 2015GUHAP55462 Decision) –

A dynamic model to optimize municipal electric power systems by considering carbon emission trading under uncertainty

In this study, a FFSP (full-infinite fuzzy stochastic programming) method is developed for planning MEPS (municipal electric power systems) associated with GHG (greenhouse gas) control under uncertainty. FFSP can deal with multiple uncertainties presented in terms of fuzzy sets, functional intervals, and random variables. FFSP is also applied to a case study of Beijing for managing MEPS, and reducing the GHG emission through introducing the EU ETS (European Union greenhouse gas emission trading scheme). The results indicate that reasonable solutions have been generated, which can be used for generating schemes of energy resources, electricity production/allocation, and capacity expansion under various economic costs and GHG reduction requirements. The case study demonstrates that FFSP can increase the abilities of reflecting complexities for dynamics of capacity expansion and interaction of multiple uncertainties in MEPS. The results allow in-depth analyses of trade-offs between GHG mitigation and economic objective as well as those between system cost and decision makers' satisfaction degree. Besides, this study can also provide an example to help China construct domestic carbon trading market at municipal scale for addressing the challenges of global climate change.

Assessment of achievements of the Lima Climate Change Conference and perspectives on the future

The Lima call for climate action adopted at the Lima Climate Conference on Climate Change specifies that the principles of the United Nations Framework Convention on Climate Change, including the principle of common but differentiated responsibilities, shall apply to the new climate agreement to be adopted at the Paris Conference on Climate Change in 2015. Decisions on other heavily debated items, including the intended nationally determined contributions, were also made at the Lima Conference. The significant achievements in Lima and the positive momentum have laid a solid foundation for the adoption of a new climate agreement in the Paris Climate Conference. Four measures are proposed for China to meet great challenges in addressing climate change beyond 2020, including early formulation and issuance of a climate change law, establishment of a greenhouse gas emission trading scheme, promotion of advanced climate technology investments, and further international engagement for climate change.

The timeline of trading frictions in the European carbon market

During its trial phase (Phase I), the EU Greenhouse Gas Emission Trading Scheme (EU-ETS) collapsed because of an over-allocation of emission allowances. We evaluate the progress of this market from the trial phase to the next commitment period (Phase II) from a microstructure angle. We show that trading frictions, as measured by the relative spread, information-asymmetry risk, and market-making profits decreased from Phase I to Phase II. Although volatility decreased, its noise-related component gained in importance at the expense of its information-related component, resulting in lower quality of the price changes.

Enforcement of the EU Greenhouse Gas Emissions Trading Scheme

This book chapter focuses on the EU greenhouse gas emissions trading scheme. The core rule of emissions trading is that industries need to cover their emissions with tradable emission rights. The need to cover emissions with a tradable right gives a financial incentive to firms to choose for the reduction of emissions, of course related to the market price of the tradable right. This price-incentive at the same time urges governments to put in place a sound enforcement approach. The chapter discusses how the EU GHG emissions trading programme deals with the fact that compliance by the covered industry must be ensured. The enforcement package of the EU ETS is widely harmonized, but it is clear that the real actions need to be taken primarily within the Member States. Member States have to fulfil an important role in ensuring the environmental integrity of the ETS. They need to implement the ET Directive and to control and to enforce industry where necessary. The active role of Member States – for instance, with setting up enforcement strategies – is not only important for the environmental effectiveness of the scheme, but also for ensuring as much as possible the competition concerns of the covered industry.

Legislative Choices and Legal Values: Considerations on the Further Design of the European Greenhouse Gas Emissions Trading Scheme from a Viewpoint of Democratic Accountability

This chapter aims at enhancing the understanding of designing an emissions trading scheme for greenhouse gases within the EU context. After having emphasized the need for a legal analysis of the emissions trading instrument, it will present some important design options. Subsequently, it will discuss the proposed major revision of the present scheme from one specific aspect that was raised in the ‘reform’ literature by Bruce A. Ackerman and Richard B. Stewart, which is what they call the ‘democratic case’ of emissions trading, which we will take further and call democratic accountability. It will be debated whether emissions trading promotes the democratic accountability of environmental law.

Methane emissions from landfills in Serbia and potential mitigation strategies: a case study

Open dumping and landfilling have represented the predominant method of waste management in Serbia during the past decades. This practice resulted in over 3600 waste disposal sites distributed all over the country. The locations of the sites and their characteristics have been determined in the framework of the presented study. The vast majority of disposal sites (up to 3300) are characterized by small deposition depth of waste and total waste volumes of less than 10,000 m(3). Only about 50 landfills in Serbia contain more than 100,000 m(3) of waste. These large landfills are responsible for more than 95% of the total CH(4) emissions from waste disposal, which was assessed as 60,000 tons of CH(4) in 2010. The evaluation of different measures [soil cover, compost cover and landfill gas (LFG) systems] for mitigating greenhouse gas emissions from Serbian landfills indicated that enhanced microbial CH(4) oxidation (using a compost cover), as well as the installation of LFG systems, could generate net revenues as saved CH(4) emissions are creditable for the European Greenhouse Gas Emissions Trading Scheme. In total between 4 and 7 million tons of CO(2) equivalent emissions could be avoided within the next 20 years by mitigating CH(4) emissions from Serbian landfills.

Personal carbon trading: A critical survey: Part 1: Equity

In recent years, there has been considerable discussion within UK climate policy circles regarding the appropriateness of personal carbon trading as an instrument for greenhouse gas emission reduction. This paper is the first in a two-part survey of personal carbon trading (PCT), the term used here to describe proposed (sub-)national greenhouse gas emission trading schemes under which at least some emissions rights are allocated to and surrendered by individuals. After introducing the various proposed PCT schemes, the paper compares, in terms of equity, the two most-discussed PCT schemes with two alternative emission trading schemes and a carbon tax. The papers' two key findings are as follows. First, there are strong arguments that the equal per capita allocation proposed under some instruments is not completely fair. Second, the five instruments compared can be equivalent in terms of their equity. Along with equity, efficiency and effectiveness make up three key criteria for comparing environmental policy instruments. As PCT has no advantage in terms of equity, the paper concludes that any case for PCT will depend on it having advantages in terms of efficiency and/or effectiveness. Whether PCT has such advantages is explored in Part 2.

A Defense of the EU Emission Trading Scheme in Aviation Activities

From 1 January 2012, directive 2008/101 extends the EU Greenhouse Gas Emission Trading Scheme to aviation activities. In this judgment, the Court rejects the claim of American air carriers that the directive should not be applied because it is contrary to international norms.Although critical of the reasoning in both the Opinion and the judgment, this comment generally supports their final conclusion on the conformity of Directive 2008/101 with international law. The first section deals with the determination of the rules of international law that, in the present case, can be relied on to challenge the Directive. In particular, it discusses the rejection of the Chicago Convention from the international norms relevant to the present case. The second section focuses on the three substantial challenges to Directive 2008/101: the “jurisdiction,” “capacity” and “free trade” grounds. The third section explores alternative ways to justify Directive 2008/101 as an exception to international norms.

Policy Considerations for Mandating Agriculture in a Greenhouse Gas Emissions Trading Scheme: A comment

Applied Economic Perspectives and PolicyVolume 33, Issue 4 p. 661-667 Comment and Reply Policy Considerations for Mandating Agriculture in a Greenhouse Gas Emissions Trading Scheme: A comment Stéphane De Cara, Corresponding Author Stéphane De Cara stdecara@grignon.inra.fr Correspondence may be sent to: stdecara@grignon.inra.frSearch for more papers by this authorBruno Vermont, Bruno VermontSearch for more papers by this author Stéphane De Cara, Corresponding Author Stéphane De Cara stdecara@grignon.inra.fr Correspondence may be sent to: stdecara@grignon.inra.frSearch for more papers by this authorBruno Vermont, Bruno VermontSearch for more papers by this author First published: 08 September 2011 https://doi.org/10.1093/aepp/ppr027Citations: 1 Both authors are with the Institut National de la Recherche Agronomique (INRA), Unité Mixte de Recherche Economie Publique INRA-AgroParisTech, France. Read the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinked InRedditWechat Citing Literature Volume33, Issue4December 2011Pages 661-667 RelatedInformation

Policy Considerations for Mandating Agriculture in a Greenhouse Gas Emissions Trading Scheme: Reply

The question of whether or not the agricultural sector should be covered in a GHG ETS is prominent in policy debates surrounding the design and implementation of such proposed schemes in many developed nations. This paper identifies two key economic elements that determine both the costs and the benefits of mandating agriculture in an ETS. These are: the costs of reducing GHG emissions in agriculture, and the transactions costs pertinent to covering agriculture in an ETS. Published data on these elements is used to derive a likely range of the overall social costs of mandating the agricultural sector in a GHG ETS. Current indicators of those costs for agriculture, and for the other sectors of the economy, do not offer evidence that mandating agriculture in an ETS would be socially beneficial. Alternative approaches to engaging the agricultural sector in GHG emission reduction, e.g. through voluntary opt-in or through offsetting credits, are likely to be more beneficial. Copyright 2011, Oxford University Press.

Policy Considerations for Mandating Agriculture in a Greenhouse Gas Emissions Trading Scheme

AbstractThe question of whether or not the agricultural sector should be covered in a GHG ETS is prominent in policy debates surrounding the design and implementation of such proposed schemes in many developed nations. This paper identifies two key economic elements that determine both the costs and the benefits of mandating agriculture in an ETS. These are: the costs of reducing GHG emissions in agriculture, and the transactions costs pertinent to covering agriculture in an ETS. Published data on these elements is used to derive a likely range of the overall social costs of mandating the agricultural sector in a GHG ETS. Current indicators of those costs for agriculture, and for the other sectors of the economy, do not offer evidence that mandating agriculture in an ETS would be socially beneficial. Alternative approaches to engaging the agricultural sector in GHG emission reduction, e.g. through voluntary opt‐in or through offsetting credits, are likely to be more beneficial.

Preliminary Evidence on Responses to the New Zealand Forestry Emissions Trading Scheme

New Zealand is the first country to implement a Greenhouse Gas Emissions Trading Scheme (ETS) that includes a forestry component as part of its contribution to global climate mitigation and as a strategy for compliance with the international climate change agreement the Kyoto Protocol. The goal of this paper is to provide information o forestry’s role in the New Zealand ETS such that a foreign policymaker will be able to understand the intricacies and issues of the New Zealand system and be able to apply this knowledge to the design of his or her own ETS. This paper also aims to provide useful documentation of the system as it stands in 2010 for the New Zealand Parliament to use in future reviews of the system. The paper first provides a brief outline of the role of forestry in New Zealand’s ETS, including the reasons for its inclusion in the greater system and the rules by which forestry operates within the system. This paper then analyses these rules, indicating the reasons behind the inclusion of certain provisions where the reasoning may not be immediately clear. Finally, this paper provides both quantitative and qualitative data on how well the system is working so far, whether the system is operating as predicted, and why any discrepancies between predicted and actual outcomes arise.

Impacts of emission trading and renewable energy support schemes on electricity market operation

In order to mitigate Greenhouse Gas emissions, emission trading and renewable energy support schemes have been or are going to be implemented in some developed countries or regions. Inevitably, the implementation of these two schemes would bring some new problems to electricity market operation. Given this background, with the implementation of these two schemes, an agent-based market simulation method is proposed in this study for analysing the gaming behaviours of generation companies in an electricity market environment. Replicator dynamics algorithm is employed to simulate the bidding strategies of agents (generation companies) for profit maximisation. The operation process of a specified electricity market is simulated over a studied time horizon and some indices are employed to evaluate the market operation performance. A numerical example is served for demonstrating the feasibility of the proposed model and methodology. The impacts of the two schemes on the electricity market operation are examined through the comparisons of the indices in different scenarios.

Multistage expansion planning of generation and interconnections with sustainable energy development criteria: A multiobjective model

A novel multiobjective, multiarea and multistage model to long-term expansion planning of integrated generation and transmission corridors incorporating sustainable energy developing is presented in this paper. The proposed MESEDES model is a “bottom-up” energy model which considers the electricity generation/transmission value-chain, i.e., power generation alternatives including renewables, nuclear and traditional thermal generation along with transmission corridors. The model decides the optimal location and timing of the electricity generation/transmission abroad the multistage planning horizon. The proposed model considers three objectives belonging to sustainable energy development criteria such as: (a) the minimization of investments and operation costs of power generation, transmission corridors, energy efficiency (demand side management (DSM) programs) considering CO2 capture technologies; (b) minimization of Life-Cycle Greenhouse Gas Emissions (GHG); and (c) maximization of the diversification of electricity generation mix. The proposed model consider aspects of the carbon abatement policy under the CDM – Clean Development Mechanism or European Union Greenhouse Gas Emission Trading Scheme. A case study is used to illustrate the proposed framework.

Understanding the effect of an emissions trading scheme on electricity generator investment and retirement behaviour: the proposed Carbon Pollution Reduction Scheme

The objective of a greenhouse gas (GHG) emissions trading scheme (ETS) is to reduce emissions by transitioning the economy away from the production and consumption of goods and services that are GHG intensive. A GHG ETS has been a public policy issue in Australia for over a decade. The latest policy initiative on an ETS is the proposed Carbon Pollution Reduction Scheme (CPRS). A substantial share of Australia’s total GHG reduction under the CPRS is expected to come from the electricity generation sector. This paper surveys the literature on investment behaviour under an ETS. It specifically focuses on the relationship between the design of an ETS and a generator’s decisions to invest in low emissions plant and retire high emissions plant. The proposed CPRS provides the context for presenting key findings along with the implications for the electricity generation sector’s transition to lower emissions plant. The literature shows that design features such as the method of allocating permits, the stringency of the emissions cap along with permit price uncertainty, provisions for banking, borrowing and internationally trading permits, and the credibility of emissions caps and policy uncertainty may all significantly impact on the investment and retirement behaviour of generators.