Quota Price Research Articles

Are milk quota prices a rational investment? Modeling quotas as financial assets

AbstractOur objective in this paper is to examine the growth of the price of farm milk quotas in Canada, to shed light on their patterns of growth within the last 15 years. Our quota price model is based on the Gordon growth model, supplemented by some important characteristics of the milk quota market. Our explanatory variables include the quota rental price, interest rate, and expectations of both price and quantity growth, all for the province of Alberta over the 2009–2023 time period. Our economic model of quota prices performs well by giving results with the predicted signs for all variables in our model and high levels of statistical significance except for expectations of quantity allocations when entered separately. The model has two variants, one with the expectation of growth in quota rents and the other with the expectation of growth in the quota asset price. Econometric issues related to time series problems are dealt with. The model allows calculation of policy risk, which shows an interesting pattern over this time period.

A bi-level model for coal power decarbonization via biomass co-firing considering CO[formula omitted] emission trading system

Faced with the challenges posed by the Paris Agreement targets, biomass co-firing offers an efficient measure to decarbonize coal-fired power generation. Although economic burden of biomass co-firing has severely limited the large-scale application, effective CO2 emission trading system has the capability to subsidize and incentivize. Existing studies related to biomass co-firing under CO2 emission trading system fail to consider multiple decision makers and uncertain decision-making environment. To address these limitations, this paper proposes a bi-level model for coal power decarbonization via biomass co-firing considering CO2 emission trading system in an uncertain decision-making environment. It considers the interactive relationship between multiple decision makers. The upper-level model focuses on the formulation of CO2 emission trading system, and the lower-level model decides biomass co-firing and emission reduction. Fuzzy set theory is employed to describe the uncertain parameters and convert them into exact values. To calculate the model, a bi-level interactive method based on satisfactory solution is developed. A case study is conducted to illustrate the effectiveness and practicality of the proposed model. Results show that the price of initial quotas fluctuates between 38.01 and 48.7 CNY/tonne, and the lowest carbon intensity is 0.741 kg/kWh. Management recommendations are provided to support CO2 emission reduction.

Pricing of Chinese Certified Emissions Reduction Scheme in a Supply Chain Under the Cap-and-Trade Policy

Abstract Against the backdrop of carbon trading, the Chinese Certified Emissions Reduction (CCER) scheme is one of the most important measures of China to reduce carbon emissions. We study a supply chain consisting of a CCER supplier and a manufacturer that buys CCER quotas from the supplier. The supplier is a non-emissions-control enterprise engaged in clean energy projects, while the manufacturer is classified into three types: a clean, a relatively clean, and an unclean firm. We analyse the impacts of the price and offset rate of CCER quotas on firms’ emissions reductions. We find that when the price of CCER quotas is lower than the price of Chinese Emissions Allowances (CEAs): (1) for both clean and unclean manufacturers, with increasing CCER offset rate (quota price), technical emissions reduction decreases (increases). (2) The incentive for the relatively clean manufacturer to reduce emissions is not affected by other extraneous factors. When the prices of CCER quotas and CEAs are uncertain, we find that (1) the technology abatement decisions of the three types of manufacturer are consistent and the corresponding CCER suppliers price their CCER quotas in the same way. (2) When the proportion of CCER quotas purchased by the manufacturer increases, the unit technical emissions reduction increases. Confirming that introduction of the CCER scheme can reduce carbon emissions, our findings provide theoretical guidance for suppliers to make pricing decisions on CCER quotas and for manufacturers to make technical emissions reduction decisions.

The allocative efficiency of construction land quota in rural China: a perspective of bidders' behavior and regret psychology.

The construction land quota pricing mechanism with cost plus pricing method is not sufficient to reflect its intrinsic value. This diminishes the willingness of farmers to voluntarily reclaim abandoned residential and other rural construction land, leading to suboptimal efficiency in rural land utilization and an excessive squandering of rural land resources. Thus, a sequential auction model with two stages for complementary goods was constructed, which considered the synergic characteristics between the land and quota. Further, regret psychology of bidder was considered in the case of winning or losing. A rational pricing mechanism has been developed to allocate construction land quotas, aiming to enhance farmers' motivation to the vacant homesteads of reclamation and revitalizing the stock of rural construction land. The results revealed that the regret psychology in the case of winning would decrease the transaction price of the quota, i.e., the greater the perceived regret in the case of winning, the more significant the reduction in the bidding price offered. Moreover, the regret psychology in the event of losing/failure would increase the transaction price of quota. Furthermore, publishing only the winner's price after the auction leads to the highest price of the quota offered by the bidder. In contrast, publishing only the loser's bidding price leads to the lowest transaction price of the quota offered by the bidder. In addition, the fee for delayed construction would increase the bidding price of the construction land quota. Therefore, local governments should consider announcing only the winner of price after the quota auction has ended. In addition, imposing a fee for delayed construction would enhance the transaction price of land quota, increase farmers' revenue from land reclamation, and incentivize farmers to reclaim unused rural land.

Does the carbon emission trading scheme foster the development of enterprises across various industries? An empirical study based on micro data from China

To achieve the goal of carbon reduction, China has been piloting the Carbon Emission Trading System (CETS) since 2013. As the economy faces a downward trend, it is significant to explore the impact of CETS on business development. There is still debate in academia about whether this policy can boost the level of business development. This paper, based on all A-share data of listed companies in China from 2009 to 2018, uses the Difference in Differences (DID) model to verify the impact of CETS on the input of capital and labor factors and the level of technology in enterprises and discusses the industry heterogeneity of this impact in detail. Placebo tests, propensity score matching, and triple differences ensure the robustness of the conclusions. In further research, this paper decomposes the policy effect of CETS. It regresses the impact of carbon quota prices and carbon market trading scale on business development. The final conclusion is that CETS has a positive impact on the input of capital and labor in enterprises and a negative impact on the level of technology. After distinguishing industries, this conclusion shows differences according to different characteristics of high emissions and low emissions. In addition, the increase in carbon quota prices hinders business development, while the scale of carbon market trading shows an inverted “U” relationship with business development. The article provides meaningful policy references for China and countries in the early stages of CETS construction.

Credit rating- and credit score-based carbon emission quota trading model of city dwellers

Introduction: The reduction of electricity-related carbon emissions by city dwellers (CDs) is important for China to achieve low-carbon development and sustainable energy transformation. Due to the lack of incentives for reduction, electricity-related carbon emissions from CDs are increasing year by year. To this end, this paper proposes an electricity-related carbon emission quota trading model that integrates a credit rating and credit score system, particularly for motivating CDs to actively participate in carbon emission reduction.Methods: With the history of electricity bill payment data, the density-based spatial clustering of applications with noise (DBSCAN) algorithm is used to cluster CDs, forming different clusters of CDs with different sensitivity levels to carbon emission quota prices. Thereafter, based on the total carbon emission quota and tiered electricity prices from the power company, incentive rules according to the classification result and credit scores of CDs are formulated. Under certain conditions, a leader–follower Stackelberg game between CDs and the power company is built to determine the base price of the carbon emission quota, and thereby, referring to the credit scores of CDs, floating carbon emission quota prices are offered to them in the final settlement.Results: The simulation results for an actual community in a city in China show that the proposed method can considerably reduce the carbon emissions.Discussion: The proposed credit rating and credit score system outperforms the asymmetric Nash negotiation method in terms of promoting carbon emission reduction.

Counterparty Risk Contagion Model of Carbon Quota Based on Asset Price Reduction

Driven by the “double carbon” goal, the sale of financial assets at reduced prices by firms due to carbon emission constraints is bound to aggravate the uncertainty and volatility of carbon trading among firms, and potentially create counterparty risk contagion. In view of this, this paper considers the sensitivity of the transaction of corporate financial assets, the transaction price of carbon quotas, and corporate carbon performance; constructs a network model for the risk contagion of carbon quota counterparties; theoretically discusses the risk formation and infection mechanism of carbon quota counterparties; and calculates and simulates the evolutionary characteristics of the risk contagion of carbon quota counterparties. The main research conclusions are as follows. (1) In the interfirm debt network, the sensitivity to the price of selling the financial asset, the probability of credit risk contagion of carbon quotas among firms, the cumulative proportion of assets sold, and the proportion of rational investors in the financial market exert a decreasing phenomenon on the risk of carbon quota counterparties. In addition, the corporate carbon performance shows a marginal increasing phenomenon. (2) When multiple factors intersect, the proportion of rational investors in the financial market has the greatest influence on the formation of the carbon quota counterparty risk, whereas the effect of corporate carbon performance has the least. Corporate carbon risk awareness has the greatest effect on the risk contagion of carbon quota counterparties, whereas the trading price of the carbon quota has the least influence. In addition, the total score of the interfirm assessment has a great impact on the trend and range of the risk contagion of carbon quota counterparties. (3) Corporate carbon risk awareness and the carbon quota trading price have a marginally decreasing effect on the risk contagion of carbon quota counterparties, and corporate carbon performance and the total score of interfirm assessment have a marginally increasing effect. This study has important theoretical and practical significance for preventing interfirm counterparty risk contagion under the double carbon target.

Students' Problems in Online Learning: What Happened to the Students in English Class During Pandemic Covid-19?

This research describes problems faced by students of ITB AAS Indonesia in the implementation of online learning during the pandemic Covid-19 in the academic year 2020/2021. This research uses qualitative research. The analysis results show that during online learning in English class, students’ problems are: 1) concentration during learning. 2) feeling bored and lazy during learning. 3) slow or unstable internet network. 4) expensive internet quota prices. 5) technical problems with learning devices such as computers, laptops, or cellphones. 6) adaptation to digital technology such as video-conferencing applications. 7) the circumstances that are not conducive at home. 8 communicating and interacting with the lecturer and classmates. 9) managing work and study time. 10) accessing institutional e-learning or other learning applications. 11) understanding English learning materials. 12) doing the English assignments and homework given by the lecturer. 14) the total number of English assignments is too much. 13) having limited time for doing English assignments and homework. 14) the lecture schedule is not adjusted to the proper lecture schedule. 15) lecturers have a limited learning method during teaching online. 16) feeling worried and anxious about the English midterm exam and the final exam including the question type, number, or level of difficulty of questions and the implementation of online exams during online learning. 17) feeling worries and anxiety about the English final grade or score that will be obtained at the end of the semester. As teachers or lecturers, we have to find various solutions to overcome the problems.

Optimal production with carbon trading market in China

As a significant carbon dioxide-emitting country globally, China has set a concrete short-term target of carbon dioxideemissions peak in 2030 and an ambitious long-term plan to reach carbon neutrality by 2060. One essential policy is toset up a carbon trading market to reduce high-pollution enterprises’ carbon emissions by rationally allocating carbonquotas among different firms and regions and setting carbon quotas trading market.In reality, firms obtain carbon quotas in three ways, initial allocation from the government, carbon market trading, andpurification. By using carbon quotas, firms are required to meet the limitation of carbon emissions by regulations. Tohelp firms make the cost-optimal decision in both short-term and long-term management, this paper focuses on theimpact and trading of carbon quota for emission-depending firms.The short-term optimal production model suits firms less than a year from meeting emission limitation requirements. Itis considered that during this time, firms cannot upgrade production equipment with less carbon emission but can onlysell or buy carbon quotas in the carbon trading market. Furthermore, this paper builds a carbon quota price predictingmodel based on the long-short-term memory neural networks(LSTM) method to help firms develop a better tradingstrategy. In the long term, firms can update their technique to less carbon-emitting production technology. Therefore,a long-term optimal production model is established, and variable purifying levels are discussed. Finally, this papercalculates the optimal production strategy under different restraints of carbon emission.

EU in search of a Carbon Border Adjustment Mechanism

To meet the targets of the EU’s Fit for 55 package, the European Commission proposed in July 2021 to implement a Carbon Border Adjustment Mechanism (CBAM) to replace free allocation of Emission Trading System (ETS) allowances for the most trade-exposed emitting industries. CBAM aims to prevent carbon leakage and restore a level playing field in high-emitting industries. Its design, as voted by the European Council in March 2022, by the Parliament in June, and ultimately amended by a provisional agreement between the Council and the European Parliament in December 2022, raises several issues. This paper aims to quantify the economic and environmental impacts of different choices regarding this design. Simulations are based on a dynamic general equilibrium model representing imperfect competition, input–output relations, greenhouse gas emissions, the endogenous price of emission quotas and the presence of free allocation of allowances. We show that CBAM is effective in reducing carbon leakage. But its design increases the price of carbon in the European Emissions Trading Scheme. Competitiveness losses in export markets are expected for downstream sectors that are not covered by the CBAM, as well as for European exporters of high-emitting industries, even in the presence of rebates.

Analysis of Public Interest in Telkomsel Cards Using the Decision Tree Method

SIM card (Subscriber Identification Module) card is a physical electronic device that is the integrated circuit of the internet. Sim cards are used by the public as a place to store quotas for internet, phone calls and SMS. There are many types of SIM cards that are used by the public, such as Telkomsel cards, XL cards, Exis cards and Smartfren cards. There are some people who are interested and use Telkomsel cards, because the network is good. But there are some people who don't use Telkomsel cards, because the quota price is quite expensive. Therefore, the Penlus will make research about people's interest in Telkomsel cards. This study aims to determine the amount of public interest in the Telkomsel card. To conduct this research, the authors used 42 community data which would be classified using the decision tree method. The data used by the author was obtained by distributing a questionnaire to the public. After classifying using the decision tree method, the result is that the people who are interested in the Telkomsel card are 33 people who are interested in the Telkomsel card (for the representation results it is 78.5%) and the results obtained are that the people who are not interested in the Telkomsel card are 9 people (for its representation results of 21.4%). From the results of the study, many people are interested in Telkomsel cards, even though the internet, call and SMS quota prices are quite expensive.

Effects of China's low-carbon policy under stochastic shocks-a multi-agent DSGE model analysis.

China has announced a target of achieving carbon peaking by 2030 and carbon neutrality by 2060. Therefore, it is important to assess the economic impacts and emission reduction effects of China's low-carbon policies. In this paper, a multi-agent dynamic stochastic general equilibrium (DSGE) model is established. We analyze the effects of carbon tax and carbon cap-and-trade policies under both deterministic and stochastic conditions, as well as their ability to cope with stochastic shocks. We found that (1) from a deterministic perspective, these two policies have the same effect. Every 1% cut in CO2 emissions will bring a 0.12% output loss, a 0.5% drop in demand for fossil fuels, and a 0.05% rise in demand for renewable energy; (2) from a stochastic perspective, effects of these two policies are different. This is mainly because economic uncertainty does not change the cost of CO2 emissions under a carbon tax policy, but it does change the price of CO2 quotas and the emission reduction behaviors under a carbon cap-and-trade policy; (3) from an economic volatility perspective, both two policies can act as automatic stabilizers. Compared to a carbon tax, a cap-and-trade policy can better ease economic fluctuations. The results of this study provide implications for policy-making.

Groundfish quota prices

In 2010, the Northeast United States groundfish fishery adopted a catch share system in which Annual Catch Entitlements (quota) are allocated to groups of firms, known as sectors. The quota market has many features that differ from an ideal market: trades are facilitated by sector managers, completed trades are not easily seen by all, and both package and barter trades are common. This paper examines quota prices using a two stage econometric model. In the first stage, transactions data are used to estimate the prices of individual stocks of quota. In the second stage, a hurdle model is used to understand the determinants of quota prices. Despite the many quirks inherent in groundfish management, quota prices are affected by fundamentals in reasonable ways: increases in output prices and decreases in quota available both increase quota prices. Increases in monitoring rates also increase quota prices, evidence that at least some of the groundfish fleet is not always compliant with fishing regulations when not observed.

Market incentives, carbon quota allocation and carbon emission reduction: Evidence from China's carbon trading pilot policy.

As a major carbon dioxide-emitting country, China set carbon trading market to reduce enterprise carbon emissions through the rational allocation of carbon quotas among different enterprises and regions. The market has also conducted a preliminary exploration for the country to achieve carbon dioxide emissions peak in 2030 and carbon neutrality in 2060 while actively addressing the challenges of global climate change. This study analysed the emission reduction effect of China's carbon trading pilot policy, especially the role of carbon quota and carbon trading price. The analysis used county-level panel data from 1997 to 2017, regarded the implementation of the carbon trading pilot policy as a quasi-natural experiment, and used the difference-in-differences method. The results showed that, first, the policy implementation not only reduced regional carbon emissions but also inhibited carbon dioxide emissions per capita, with long-term effects. Second, the carbon emission reduction effect brought by the carbon pilot policy showed significant heterogeneous results with the different degrees of regional carbon emissions and environmental supervision. The effect was greater in areas with higher carbon emission density and stronger legal supervision. Third, the difference in carbon quota allocations resulted in different emission reduction effects, among which the historical method had the strongest effect. The carbon quota price and number of enterprises participating carbon trading market were the key factors affecting carbon emission reduction.

Umrah Registration System Using Extreme Programming Method Towards Worship Tourism

The Umrah registration process at PT Annisa Mulia Wisata still uses a manual system, so the admin at the branch office must contact the head office first to find out the quota availability for the Umrah package ordered. For this reason, a system is needed to assist the ongoing Umrah registration activities so that errors during the registration process can be reduced and the system can run effectively and efficiently. The development stage of this web-based Umrah package registration system was built using the Laravel framework and system development life cycle (SDLC) to support this research using Extreme Programming (XP). With this web-based Umrah registration system, it can help prospective pilgrims in the Umrah registration process by choosing each type of package along with the price and number of quotas and as a medium of information in the marketing process and transaction data processing for companies.

Umrah Registration System Using Extreme Programming Method Towards Worship Tourism

The Umrah registration process at PT Annisa Mulia Wisata still uses a manual system, so the admin at the branch office must contact the head office first to find out the quota availability for the Umrah package ordered. For this reason, a system is needed to assist the ongoing Umrah registration activities so that errors during the registration process can be reduced and the system can run effectively and efficiently. The development stage of this web-based Umrah package registration system was built using the Laravel framework and system development life cycle (SDLC) to support this research using Extreme Programming (XP). With this web-based Umrah registration system, it can help prospective pilgrims in the Umrah registration process by choosing each type of package along with the price and number of quotas and as a medium of information in the marketing process and transaction data processing for companies.

Evaluation of The Use of E-Learning Madrasah in Social Studies Learning During The Covid-19 Pandemic in Tsanawiyah Negeri Madrasah (Field Study at 4 Madrasahs in the East Coast Region of Central Java)

<p class="06IsiAbstrak"><span lang="EN-GB">The goal to be achieved in this study is to determine the Evaluation of the Use of Madrasah E-Learning in Social Studies learning during the Pandemic Covid-19 Period at Madrasah Tsanawiyah. The research method is a qualitative method.</span></p><span lang="EN-US">The results of this study concluded that 1). In planning online learning using the e-learning application for social studies subject madrasas, the teacher has made learning tools well before carrying out the online learning process, but the teacher can only use 2 methods in the learning process, only the method of giving assignments and lectures; 2). The implementation of online learning, using the madrasa e-learning application, has been proven to have gone well. The madrasa e-learning application can be used easily by teachers, students, and parents but is considered ineffective because there are still many obstacles faced by teachers, students, and parents such as high quota prices, too many assignments, children getting bored easily, parents who have to work and teachers who cannot explain the material directly, but these obstacles can be overcome in their separate ways</span><span lang="EN-US">.</span>

Payment for CO2 sequestration affects the Faustmann rotation period in Norway more than albedo payment does

Albedo and CO2 sequestration are the two most important climate forcing factors in forestry. After harvest the albedo in boreal forests increases which has a cooling effect. Likewise, CO2 captured in the photosynthesis reduce atmospheric CO2 and thereby have a cooling effect. These effects have value to society, and they may affect optimal management.This article investigates the effect on economical optimal forest management – here the optimal harvest age – by payment for these forcers. The albedo effect is evaluated using the standard climate metric global warming potential (GWP) with a time horizon of 100 years, i.e. in terms of CO2 equivalents. Alternative measures are discussed. The cooling effect of albedo change at time of harvest for the total Norwegian harvest corresponds to about 1.3% of the current Norwegian GHG emissions. The variation in albedo effect across the southern part of the country is modest.The CO2 sequestration effect is much larger than the albedo. At the time of harvest the CO2 content in forest is more than 40 times the albedo effect. The carbon effect will therefore dominate the effect on the harvest age. Payments for climate services will prolong the rotation period. With the current quota price in the EU ETS – about 80 € ton−1 CO2 equivalents – and current stumpage value, carbon capture and storage will be more profitable than commercial timber production for young stands. For stands close to maturity, the payment scheme will have little effect.

A Model of Quota Prices in a Multispecies Fishery with “Choke” Species and Discarding

Using a two-stage optimisation model, we simulate the determination of market-clearing quota lease prices in a multispecies fishery. Assuming fixed proportions technologies, we find that equilibrium quota prices are jointly determined. Price equilibria are sensitive to both the number of quota species and the heterogeneity of the fleet, with corner prices observed where there are a relatively large number of species. Where the fleet is very heterogeneous, quota prices fail to capture all rent as resource rent and inframarginal rents are earned by some vessels. If there is excess demand for quota (for example, as a result of the exhaustion of the quota for a “choke” species) bidding up of the quota price causes all other quota prices to fall. This can result in some vessels starting to earn inframarginal rents even though they are discarding part of the catch. We also use the model to examine the impact of a “deemed value” charge for over-quota landings.

Structural behavioral models for rights-based fisheries

Rights-based management is prevalent in many fisheries, yet conventional spatiotemporal models of fishing behavior do not reflect such institutional settings. We adapt random utility maximization (RUM) models of spatiotemporal fishing behavior to capture the general equilibrium dynamics of catch-share fisheries by incorporating endogenously determined equilibrium quota prices. We demonstrate how a structural estimation strategy is capable of recovering policy-invariant behavioral parameters and predicting out-of-sample counterfactual policies. We illustrate the utility of our structural modeling approach by evaluating the efficacy of “ecosystem-based” policies, such as spatial closures, in a catch-share-managed fishery. Simulation results reveal that such policies have the potential to distort price signals in the quota market and prevent quota prices from coordinating fishing behavior in an efficient manner. Ecosystem-based policies may thus fall short of their intended objectives when introduced into rights-based managed fisheries. Importantly, we demonstrate that such conclusions cannot easily be drawn from behavioral models that omit or approximate the general equilibrium dynamics of rights-based fisheries.