Article
Business
Marc Baudry, Anouk Faure, Simon Quemin
Summary: This research developed an equilibrium model of emissions permit trading in the presence of fixed and proportional trading costs, finding that the trading costs have significant effects on permit prices and firms' behavior. The study suggests that ignoring trading costs may lead to underestimating the price impacts of supply-curbing policies, with differences varying among firms.
JOURNAL OF ENVIRONMENTAL ECONOMICS AND MANAGEMENT
(2021)
Article
Economics
Yanming Sun, Simiao Shen, Chuanyu Zhou
Summary: This study investigates the impact of the carbon emissions trading system (ETS) pilot on green technology innovation in the energy sector by analyzing energy-related green patent applications in 283 Chinese cities. The results show that the pilot policy has reduced green technology innovation to a certain extent, weakened the innovation ability of both pollution intensive industries and non-pollution intensive industries, with a larger impact on the latter.
Article
Economics
Jan Abrell, Johanna Cludius, Sascha Lehmann, Joachim Schleich, Regina Betz
Summary: This study analyses factors related to allowance-trading behaviour for the first ten years of the existence of the European Union Emissions Trading System (EU ETS). The findings suggest that trading behaviour is related to company size, net position, sector affiliation, productivity, and location. Net buyers are more likely to participate in emissions trading and trade at higher volumes than net sellers, which could lead to a violation of Coase's independence property.
ENVIRONMENTAL & RESOURCE ECONOMICS
(2022)
Article
Energy & Fuels
Cristian Mardones, Jose Ortega
Summary: This study analyzes how different options to incorporate energy into a computable general equilibrium model's nested production structure impact outcomes when an emissions trading system is implemented. The results indicate that the KL-EM structure is the most suitable for simulating emissions trading systems, providing realistic results that are less sensitive to the values of elasticities of substitution.
Article
Environmental Studies
Joseph Dellatte, Sven Rudolph
Summary: Efforts to link emissions trading schemes of countries with heterogenous climate policies have been unsuccessful thus far. Northeast Asia faces political barriers to linking, including institutional resistance, difficulties in governance-sharing, and a lack of confidence in environmental integrity.
ENVIRONMENTAL POLITICS
(2023)
Article
Economics
Jiandong Chen, Shasha Huang, Zhiyang Shen, Malin Song, Zunhong Zhu
Summary: This study evaluates the impact of China's sulfur dioxide emissions trading pilot scheme (SETPS) on the intensity of industrial sulfur dioxide emissions using the synthetic control method. The findings suggest regional heterogeneity in the effectiveness of the SETPS, with Tianjin achieving desired reduction effect while other areas did not reduce emissions. The study highlights the importance of policy support and constant adjustments in reducing regional SO2 emissions and recommends studying and promoting Tianjin's pilot program in other regions.
Article
Agricultural Economics & Policy
Simone Borghesi, Michael Pahle, Grischa Perino, Simon Quemin, Maximilian Willner
Summary: This article critically reviews the performance of the Market Stability Reserve (MSR) in the European Union Emissions Trading System, assessing its effectiveness in achieving various policy objectives. It covers conceptual aspects and quantitative assessments and highlights important policy implications and areas for further research.
ANNUAL REVIEW OF RESOURCE ECONOMICS
(2023)
Article
Economics
Zhongjue Yu, Yong Geng, Alvaro Calzadilla, Wendong Wei, Raimund Bleischwitz
Summary: China has launched a nationwide emissions trading system (ETS) in the power sector, while also implementing a mandatory phaseout policy for coal power. The interaction of these policies may lead to unintended consequences, depending on the type of ETS. Under China's rate-based ETS, the coexistence of the phaseout policy enhances the stringency of the overall policy, while under a mass-based ETS, it results in policy overlap and potential market failure.
Article
Environmental Studies
Adrien Thomas
Summary: This article examines the interaction between trade unions and climate change policies, focusing on the steel trade unions' engagement with the 2018 revision of the EU Emissions Trading System. It finds that interorganizational bargaining with employers' organizations strongly influenced the formulation of trade unions' negotiating positions on the EU ETS.
ENVIRONMENTAL POLITICS
(2021)
Article
Economics
Yigang Wei, Xin Liang, Liang Xu, Gang Kou, Julien Chevallier
Summary: The study provides firm-level evidence of regulated firms’ strategic responses under the Shanghai ETS and proposes a model to simulate trading interactions among diversified firms. The results indicate non-monotonic L-shaped trend in carbon prices, increased trading activity with higher carbon prices, and limitations in the current ETS penalty. Policy suggestions are provided for optimizing the ETS mechanism.
Article
Environmental Sciences
Reyer Gerlagh, Roweno J. R. K. Heijmans, Knut Einar Rosendahl
Summary: Carbon prices in the EU ETS have significantly increased in recent years, possibly due to the implementation of the cancellation mechanism in the Market Stability Reserve. This mechanism has resulted in massive cancellation of emissions allowances, leading to higher carbon prices. These findings have important implications for the planned revisions of the EU ETS.
ENVIRONMENTAL RESEARCH LETTERS
(2022)
Article
Business
Xavier Fageda, Jordi J. Teixido
Summary: The EU ETS has had a significant impact on reducing emissions in the aviation sector, particularly in short-haul flights where competition from other means of transport exists. However, it has not achieved an absolute reduction in emissions in the sector as needed.
JOURNAL OF ENVIRONMENTAL ECONOMICS AND MANAGEMENT
(2022)
Article
Economics
Tao Liu, Xinyue Guan, Yigang Wei, Shan Xue, Liang Xu
Summary: This paper investigates the impact of economic policy uncertainty (EPU) on the volatility of China's emission trading scheme (ETS) pilots using the GARCH-MIDAS model. The study finds that the effects on volatility vary across different ETS pilots and EPU indices. Economic policy events affect the volatility of ETS pilots by adjusting industries' production, and the carbon market's stabilization mechanisms alleviate this influence. The study also shows that the GARCH-MIDAS model incorporating EPU indices has superior out-of-sample prediction ability in certain ETS pilots.
Editorial Material
Environmental Sciences
Manuel Linsenmeier, Adil Mohommad, Gregor Schwerhoff
Summary: Carbon pricing policies play a crucial role in combating climate change, and our research provides strong evidence that the adoption of these policies in one country influences the adoption in other countries. The diffusion of carbon pricing increases the likelihood of policy adoption by several percentage points for neighboring countries. By using Monte Carlo simulations, we estimate that the emissions reductions resulting from policy diffusion may surpass domestic emission reductions in many countries. These findings support the implementation of stringent climate policies, especially in countries with relatively low domestic emissions.
NATURE CLIMATE CHANGE
(2023)
Article
Economics
Yucai Hu, Ranran Li, Lei Du, Shenggang Ren, Julien Chevallier
Summary: Based on China's pilots of SO2 ETS and CO2 ETS, this study finds that these policies have effectively reduced SO2 and CO2 emissions, and the CO2 ETS has achieved co-benefits by reducing SO2 emissions. However, the effectiveness of SO2 ETS in reducing CO2 emissions is limited due to the maturity of SO2 capture technologies.
Article
Economics
Banban Wang, Jie Wei, Xiujie Tan, Bin Su
Summary: The study found that the price elasticities of energy demand in Chinese industrial sectors increased from 1999 to 2015 and exhibited significant heterogeneity among different industries, with nonmetal products, metals, and chemicals showing the largest elasticities.
Article
Economics
Yaxue Yan, Weijuan Liang, Banban Wang, Xiaoling Zhang
Summary: This study examines the spillover effects and dynamic linkages of carbon prices using China's pilot carbon markets as an example. The findings show that the pilots form two small-world networks, with Shenzhen, Beijing, and Hubei ranking as the top three in terms of external spillover effect. Trading activities contribute positively to the spillover.
ECONOMIC CHANGE AND RESTRUCTURING
(2022)
Article
Business
Xiujie Tan, Ziwei Xiao, Yishuang Liu, Farhad Taghizadeh-Hesary, Banban Wang, Hanmin Dong
Summary: The green credit policy is expected to be an effective financial instrument for achieving energy conservation and emission reduction. Its implementation can significantly improve total factor energy efficiency in sectors with high pollution, high energy intensity, and overcapacity. The effect of the policy varies among sectors and is influenced by energy-saving targets, the percentage of state-owned enterprises, and trade openness.
TECHNOLOGICAL FORECASTING AND SOCIAL CHANGE
(2022)
Article
Green & Sustainable Science & Technology
Si Cheng, Banban Wang
Summary: This study investigates the impact of the Belt and Road Initiative (BRI) on China's policy banks' financing for renewable energy projects in BRI countries. The findings suggest that the BRI can increase the number of renewable energy projects financed by China's policy banks in BRI countries, particularly in hydropower projects and Southeast Asia. Furthermore, the BRI has facilitated China's policy banks in providing renewable energy finance in high carbon intensity countries, contributing to the global energy transition and climate goals.
Article
Green & Sustainable Science & Technology
Xiujie Tan, Banban Wang, Jie Wei, Farhad Taghizadeh-Hesary
Summary: Carbon pricing is essential for achieving COP26 targets and carbon neutrality by promoting energy transition. However, empirical evidence on the role of carbon pricing in energy transition is limited. This study estimates the price elasticity of energy consumption using energy prices as proxies for carbon prices and finds that carbon pricing can significantly reduce energy consumption, especially in high-energy-consuming sectors such as ferrous metals, petroleum processing, chemicals, non-metal products, power, and heat. By adopting China's Emissions Trading Scheme, the covered sectors can achieve substantial energy consumption reductions with different carbon prices, contributing significantly to coal phase-down and energy transition in the post-COP26 era.
RENEWABLE & SUSTAINABLE ENERGY REVIEWS
(2023)
Article
Business
Xiujie Tan, Yongrok Choi, Banban Wang, Xiaoqi Huang
TECHNOLOGICAL FORECASTING AND SOCIAL CHANGE
(2020)
Article
Environmental Studies
Banban Wang, Anatole Boute, Xiujie Tan
Article
Environmental Studies
Banban Wang, Frank Jotzo, Shaozhou Qi
Article
Environmental Studies
Shen Lin, Banban Wang, Wei Wu, Shaozhou Qi
Article
Environmental Studies
Shaozhou Qi, Banban Wang
CHINESE JOURNAL OF POPULATION RESOURCES AND ENVIRONMENT
(2013)
Article
Economics
Marie-Louise Arlt, David Chassin, Claudio Rivetta, James Sweeney
Summary: This paper examines the impact of real-time pricing and load automation on residential distribution systems. The study finds that implementing real-time pricing can result in an aggregate welfare gain of 39 USD per customer and year. However, it also notes that RTP and load automation may significantly increase peak system load. Introducing a market-based demand management system can further enhance welfare gains and reduce grid investment.
Article
Economics
Javier Jorquera-Copier, Alvaro Lorca, Enzo Sauma, Stefan Lorenczik, Matias Negrete-Pincetic
Summary: As countries update their climate ambitions, low-carbon hydrogen production and use present opportunities for emissions reductions and economic development. A case study for Chile shows that integrating hydrogen and electricity networks can lower system costs and enhance renewable integration, but policy support is needed to address concerns related to water and land use.
Article
Economics
Dawit Guta, Hisham Zerriffi, Jill Baumgartner, Abhishek Jain, Sunil Mani, Darby Jack, Ellison Carter, Guofeng Shen, Jennifer Orgill-Meyer, Joshua Rosenthal, Katherine Dickinson, Rob Bailis, Yuta Masuda
Summary: Household solid fuel use is detrimental to health and the environment. The Indian government's PMUY subsidy has successfully promoted the adoption of LPG by millions of households. However, there is limited understanding of the decision-making process to reduce solid fuel use after transitioning to cleaner fuels. This study found that factors such as household wealth, social status, education level, and the prevalence of LPG use in the village are positively associated with LPG consumption and the discontinuation of solid fuel use. On the other hand, factors such as distance to LPG refill delivery, household size, and the PMUY subsidy are negatively associated with the share of LPG use.
Article
Economics
Nicolas Morell-Dameto, Jose Pablo Chaves-Avila, Tomas Gomez San Roman, Pablo Duenas-Martinez, Tim Schittekatte
Summary: This paper assesses the performance of differently implemented forward-looking network tariff designs and proposes an innovative coordination mechanism to increase predictability in a future with many flexible customers. The study reveals that if large shares of customers synchronize their responses to highly time-varying and locational-specific network charges, it can lead to unexpected reinforcements.
Article
Economics
Alexandra Gritz, Guntram Wolff
Summary: Russia's weaponization of gas supplies shook the energy security of Central and Eastern Europe in 2022. The region responded by increasing alternative energy supplies and developing new gas supply routes. Renewable energy, nuclear energy, and hydrogen play important roles in the long-term. Mitigating the impact of this shock requires the EU to prioritize the integrity of its energy market.
Article
Economics
Jaroslaw Kantorowicz, Marion Collewet, Matthew DiGiuseppe, Hendrik Vrijburg
Summary: Economic costs are a major political obstacle to investing in climate change mitigation and adaptation measures. The method of financing plays a crucial role in determining public opposition to government green investments, with debt financing being less opposed than broad-based taxes. This study suggests that credit market tools, such as green bonds and debt for climate swaps, can be politically efficient in increasing support for green financing. Carbon taxes and wealth taxes are found to be the most preferred options.
Article
Economics
Kun Guo, Liyuan Luan, Xiaoli Cai, Dayong Zhang, Qiang Ji
Summary: This paper investigates China's energy trade stability using a survival analysis approach. It finds that the energy trade linkages between China and 153 other countries are complex and unstable, with short periods of trade with many countries. Geopolitically risky regions, such as the Middle East and Africa, have the lowest trade stability. Climate risks have significant effects on energy trade stability. The paper proposes several policy options to improve energy trade stability in China, with special attention to increasing global climate risks.
Article
Economics
Simona Bigerna, Piyush Choudhary, Nikunj Kumar Jain, Silvia Micheli, Paolo Polinori
Summary: This study estimates the willingness to pay of Indian urban consumers for a continuous supply of electricity using contingent valuation method. The findings show that the amount consumers are willing to pay depends on the duration of power outages, with households preferring shorter outages. Income and environmental attitude also positively influence higher willingness to pay. These insights can inform policymakers in designing more reliable and customer-centric energy generation and distribution models.
Article
Economics
Temilade Sesan, Unico Uduka, Lucy Baker, Okechukwu Ugwu, Ewah Eleri, Subhes Bhattacharyya
Summary: This study examines the impact of the regulatory framework on rural electrification and universal energy access goals in Nigeria's mini-grid sector. The findings suggest that while the current framework has fostered sector growth, additional measures are necessary to ensure equitable distribution of access among rural populations.
Article
Economics
Rui Shan, Noah Kittner
Summary: Energy storage is a cornerstone in decarbonization planning as it reduces operational costs and greenhouse gas emissions, while enhancing resilience and renewables integration. However, storage developers in different regions have varying economic and environmental considerations, thereby requiring policy intervention to achieve long-term emission reductions.
Article
Economics
Tung Durmaz, Sevil Acar, Simay Kizilkaya
Summary: This study investigates the phenomenon of strategic capacity withholding in the Turkish electricity market and its relationship with the capacity remuneration mechanism. The empirical results provide strong evidence of strategic capacity withholding and show that the capacity mechanism contributes to the duration of failures. The study offers important insights for policymakers, including the implementation of a random verification mechanism and restructuring of the capacity mechanism in Turkey.
Article
Economics
Tii N. Nchofoung
Summary: The study finds that oil price shocks have a negative impact on Africa's energy transition, particularly in rural areas and net crude oil exporting countries. However, oil price shocks cannot explain the urban-rural differences in clean energy access. Therefore, increasing investment in clean energy and technologies in rural areas is necessary to enhance the resilience of the energy sector to oil price shocks.
Article
Economics
Najia Saqib, Muhammad Usman, Ilhan Ozturk, Arshian Sharif
Summary: This study examines the impact of environmental technologies, financial growth, and energy use on ecological footprint and green growth. Environmental innovation and renewable energy deployment contribute to green growth, while financial expansion and non-renewable energy use have negative effects on the environment. The study also identifies causal relationships between different factors.
Article
Economics
Yessica C. Y. Chung, Noxolo Kunene, Hung-Hao Chang
Summary: The Renewable Energy Certificate (REC) is considered an innovative technology for building a green society. This study investigates the impact of REC purchases on stock return and volume in Taiwan between 2017 and 2021. The findings suggest that REC purchases have a positive effect on stock returns of manufacturing firms but not service firms. The frequency of REC purchases is also an important factor in the relationship between REC purchase and firm value. Additionally, the study reveals that public attention to environmental pollution plays a crucial role in positive stock returns and volume, while ESG disclosure is negatively associated with returns and volume.
Article
Economics
Seife Ayele, Wei Shen, Yacob Mulugetta, Tadesse Kuma Worako
Summary: This paper addresses the challenges of governing energy procurement from a mix of non-hydropower renewable energy sources supplied by independent producers. Building on political economy analysis and five case studies of independent producer projects from Ethiopia, it seeks to understand the root causes of the protracted delays and limited extent of procurement by independent producers. The key contestations lie in managing long term contracts, risk, uncertainty and in developing the institutional and human capacity to transition.