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To align with the global goal of keeping temperature below 2∘C, a market-based initiative, “Emissions Trading System” (ETS), has been developed to mitigate climate change. However, while the carbon allowances traded at the ETS are mostly held and traded by polluting companies, financial actors engage in “speculation”, activities that might be detrimental to the functioning of the ETS have also invested in the ETS. By drawing from the big data archive of Google Trends, we construct a news-based speculation index to proxy for the role of speculation in the dynamics of carbon pricing. Given our preliminary finding of inherent volatility and the mixed-frequency nature of the dataset, we employ the GARCH-MIDAS econometric technique to test the hypothesis that an all-inclusive framework that reflects the emission compliance and emissions non-compliance dynamics of the ETS is the most accurate approach to modeling carbon prices. We show that higher speculation in the ETS fosters higher long-term volatility in carbon prices, that speculation is a good predictor of carbon prices, and that its positive impact on carbon price returns makes the ETS an attractive investment opportunity. We provide a data-driven framework upon which the growing debate about whether the behavior of the non-compliance emission actors in the ETS endangers or benefits the functioning of the ETS can be evaluated empirically. [ABSTRACT FROM AUTHOR]

Recently, it has been observed that the weather is changing constantly because of global warming. The government is urging everyone, including scientists and the general public, to help address the severe challenges caused by climate change. Addressing the pivotal issue of carbon emissions stemming from transportation, this manuscript delves into the development of an efficient and coordinated management system. The proposed solution involves a green solid transportation system employing a two-stage network to implement a carbon cap and trade policy. A mathematical model is introduced to underscore the significance of this approach. Because of market fluctuations, supply and demand constraints are not always the same. Therefore, a two-folded uncertainty is included in this article for a better realistic outcome. A ranking defuzzification approach is employed to convert this uncertainty into a deterministic measure. Two illustrative numerical case studies are presented to underscore the effectiveness and feasibility of the proposed approaches. Then, three multi-objective techniques are employed to obtain Pareto-optimal solutions for the addressed problem. After that, a comparative study among these techniques is introduced and a sensitivity analysis is added to explore how the objective functions are influenced by potential changes in supply and demand. In conclusion, the paper offers important insights and identifies areas for future research in this field. [ABSTRACT FROM AUTHOR]

The Western Climate Initiative cap-and-trade program is presented as a substantial contributor to reach the climate targets set by the governments in California and Québec, by constraining emissions through declining caps. Some doubts have however been cast on the effectiveness of this program. Using a supply–demand model and published data for the third compliance period (2018–2020), we estimate five scenarios for future emissions and changes in the program's features, and we analyse the resulting price path for compliance instruments. Our key contribution rests in the identification of the key drivers of the existing overallocation. Caps were set too high, and less emissions are actually covered compared to what is officially announced (76% in California, against a claimed 80%). Offset credits also contribute to the availability of compliance instruments. These drivers result in an excess of available instruments until 2030, preventing the cap-and-trade program to play its constraining role: caps will be exceeded and emission targets missed, while fully complying with the cap-and-trade requirements. However, putting an end to overallocation would not be sufficient to reach climate targets. Governments should either reduce the level of existing allowance caps by 19–24%, or about 385 Mt, or increase the amount of covered emissions without changing the level of current caps. [ABSTRACT FROM AUTHOR]

In September 2020, the European Parliament decided to include the CO2 emitted on the all intra-European and 50% of extra-European voyages in the European Union Emission Trading System (EU-ETS) starting from 2022, in order to reduce the CO2 emission. With the implementation of EU-ETS, the maritime supply chain will inevitably be significantly affected. Different carbon quota allocations in ETS have different impact on the CO2 emission reduction, which motivates us to investigate the effect of different carbon quota allocations on maritime CO2 emission reduction. Therefore, this paper considers two carbon quota allocations: the historical total quantity method and the historical intensity method, and develops a game model for each method. Then, the equilibrium solutions of each game model are analyzed. With the help of the system dynamics and the software Vensim, numerical experiments are conducted to verify the properties obtained in the analysis of the equilibrium solutions. The experimental results indicate that 1) Green technology (GT) can effectively reduce carbon emissions. Based on long-term simulation results, the GT investments will be gradually offset by profiting from carbon quota trading. 2) Profits may vary with price, but the Historical Intensity method consistently achieves better carbon reduction effects or relatively higher profits. 3) The marginal profits of companies with similar historical intensity baselines are almost the same. This gives an advantage to companies who implement green technologies earlier, as they can quickly gain returns from GT. • Comparing the effect of different carbon allocation methods on the maritime supply chain. • The historical intensity method reduces carbon emissions effectively, especially for companies with high unit emissions. • Using system dynamics to investigate the interaction of maritime supply chain. [ABSTRACT FROM AUTHOR]

Much attention has been devoted to the economic benefits of emission trading systems (ETSs), but research concerning the SO2 ETS in China is scarce. We examine China's SO2 ETS in 2007 from the perspective of industrial sub-sectors and employ the difference-in-difference-in-difference (DDD) model to test whether the SO2 ETS can promote industrial total factor productivity (TFP). We identify whether it is the average effect or the dynamic effect of the SO2 ETS that can improve industrial TFP. The heterogeneity test results indicate that this policy has diverse influence in different regions and industries, and the effect is better in pollution-intensive industries. We also find that the policy enhances industrial TFP by promoting efficient technological innovation and capital allocation. Our findings provide evidence that supports the Porter Hypothesis and a guide for the industrialization of developing countries. Chinese policymakers should strengthen environmental enforcement, set quotas accordingly, and encourage technological innovation to improve industrial TFP. [ABSTRACT FROM AUTHOR]

The interaction between the government's carbon reduction policy and a firm's product strategy has not been well studied in the literature. This paper considers the government's two different carbon quota allocation policies for the cap-and-trade scheme and the firm's two product strategies and investigates the interaction between them by establishing a theoretical model and deriving the optimal decisions. This paper first examines the firms' selection of low-carbon products or ordinary product strategies under the government's two carbon quota allocation policies and then studies the government's optimal carbon quota allocation policy for overall social welfare, which is based on the firm's two product strategies. Our analysis reveals that (i) when the government allocates carbon quotas aimed at reducing the firm's total carbon emissions, the firm will choose the low-carbon product strategy. When the government allocates a carbon quota aimed at optimal total social welfare, the firm's decision depends on the impact of total carbon emissions. (ii) To achieve optimal social welfare, the government will formulate different carbon quota allocation policies on the basis of firms' different product strategies. [ABSTRACT FROM AUTHOR]

High-quality green innovation plays a significant strategic support role in high-quality economic developments. Drawing upon institutional theory and property rights theory, this paper investigates the drivers of green innovation quality (GIQ) from the perspectives of formal and informal institutions. Emissions Trading Schemes (ETS) represent formal institutions designed and implemented by governments, while Corporate Social Responsibility (CSR) represents informal institutions. The study finds that ETS significantly enhances GIQ. Moreover, CSR significantly and positively moderated the relationship between ETS and GIQ, indicating that the synergistic interaction between formal and informal institutions stimulates superior innovation quality. This paper contributes to the understanding of the relationship among government regulations, corporate ethics and responsibility, and innovation quality. This paper offers recommendations for environmental policy and management strategies. [ABSTRACT FROM AUTHOR]

The carbon emissions trading market is an essential tool for addressing climate change. The carbon emissions trading market has a relatively short history, and the research and management of risks in this market require further development. This paper takes as its research object 1272 pieces of English literature studies published by international scholars and featured on the Web of Science between 2002 and 2024. It uses CiteSpace software to categorize changes in the trends related to carbon market risk research based on time, space, and keyword clustering mapping. The results reveal the following: (1) In terms of the timeline, the risk evolution of the international carbon market is divided into an embryonic period (2002–2007), a developmental period (2008–2018), and a prosperous period (2019–2024); (2) from the perspective of spatial distribution, carbon market risk research institutions are multipolar, with China, the United States, and the United Kingdom, among other countries, issuing more studies on the topic; these studies mainly emerge from universities and research institutions; and (3) in terms of research hotspots, they revolve around four disciplinary issues, namely, primary research related to carbon market risk, carbon market risk categories, carbon market risk measurement, and response programs. [ABSTRACT FROM AUTHOR]

This paper uses a multisector, multiregional general equilibrium input-output model to study the spillovers of global carbon pricing to Germany and Europe. It uses the World Input-Output Database (WIOD) to calibrate the intersectoral trade between seven regions and 56 economic sectors per region as well as EXIOBASE's sectoral accounts of greenhouse gas emissions to calibrate emission costs. We find that moving from European-only to global carbon prices does neither reduce nor increase the aggregate GDP loss for Germany or Europe as a whole. However, this masks a large degree of heterogeneity across sectors. Sectors that rely on foreign sectors, which are themselves sensitive to the transition, experience large negative spillovers from global carbon pricing. Other sectors, even those with a high emission or trade intensity, tend to benefit from global carbon pricing due to an improvement in international competitiveness. [ABSTRACT FROM AUTHOR]

Keeping carbon in the loop within the technosphere is a promising idea from a technical perspective when striving for climate‐neutral production. Reporting obligations for greenhouse gases have been focused on release into the atmosphere, often under the tacit assumption that any greenhouse gas (GHG) formed will eventually be emitted. Technologies that build on carbon capture face a situation where regulations are lacking terms to describe processes that produce or use carbon dioxide but do not release it. This work aims to highlight this situation and to provide suggestions to overcome some of the hurdles. [ABSTRACT FROM AUTHOR]

Despite the negative externalities on the environment and human health, today's economies still produce excessive carbon dioxide emissions. As a result, governments are trying to shift production and consumption to more sustainable models that reduce the environmental impact of carbon dioxide emissions. The European Union, in particular, has implemented an innovative policy to reduce carbon dioxide emissions by creating a market for emission rights, the emissions trading system. The objective of this paper is to perform a counterfactual analysis to measure the impact of the emissions trading system on the reduction of carbon dioxide emissions. For this purpose, a recently-developed statistical machine learning method called matrix completion with fixed effects estimation is used and compared to traditional econometric techniques. We apply matrix completion with fixed effects estimation to the prediction of missing counterfactual entries of a carbon dioxide emissions matrix whose elements (indexed row-wise by country and column-wise by year) represent emissions without the emissions trading system for country-year pairs. The results obtained, confirmed by robust diagnostic tests, show a significant effect of the emissions trading system on the reduction of carbon dioxide emissions: the majority of European Union countries included in our analysis reduced their total carbon dioxide emissions (associated with selected industries) by about 15.4% during the emissions trading system treatment period 2005–2020, compared to the total carbon dioxide emissions (associated with the same industries) that would have been achieved in the absence of the emissions trading system policy. Finally, several managerial/practical implications of the study are discussed, together with its possible extensions. [ABSTRACT FROM AUTHOR]

Based on the carbon emissions trading pilot policy in China, this paper takes Chinese A‐share listed companies from 2012 to 2020 as a sample, and analyzes the role of company's cost transfer capability (ECTC) in the mechanism of market‐incentivized environmental regulation policy (MERP) influencing company green transformation. This paper finds the following four primary results. First, ECTC significantly strengthens the green transformation driving effect of MERP in general. However, results based on the division of ECTC by percentiles show that MERP‐induced green transformation is more pronounced in the top 25% of companies, which distinguishes them from companies in the top 25%–50%, whose cost transfer capacity hampers MERP's contribution to the green transformation. Second, the level of regional economic development, emission regulation, and business reputation have heterogeneous influences on the moderating effect of ECTC. Third, the results based on the moderated mediation model show that ECTC can influence the green transition driving effect of MERP by moderating the two paths of risk‐taking ability and financing constraints of companies. Finally, there is a diffusion effect on the green transformation driven by MERP through cost transfer among companies in non‐pilot industries and non‐pilot regions. [ABSTRACT FROM AUTHOR]

In the current literature, there exists a lack of analysis regarding the coordination of the spinning reserve and time-shift characteristics of hydrogen storage systems (HSS) and flexible carbon capture systems (FCCS) in terms of low-carbon economic operation. They are presently used solely as a tool to capture carbon dioxide, without fully utilizing the advantages of their flexible operation. The coordination and complementarity of the FCCS and HSS can ensure stable power supply and improve renewable energy (RE) consumption. Combined with demand side response (DSR), these factors can maximize the RE consumption capacity, reduce carbon emissions, and improve revenue. In this paper, a source-storage-load flexible scheduling strategy is proposed by considering the complementary nature of FCCS and HSS in terms of rotating standby and time-shift characteristics. First, the operational mechanisms of FCCS, HSS, and demand side response (DSR) are analyzed, and their mathematical models are constructed to improve flexibility in grid operation and regulation. Next, deficiencies in FCCS and HSS operation under rotating reserve requirements are analyzed to design a coordinated operation framework for the FCCS and HSS. This operational framework aims to enable the complementarity of the rotating reserve and time-shift characteristics of FCCS and HSS. Finally, based on the carbon emission trading mechanism, a three-stage ladder carbon emission trading cost model is constructed, and a source-storage-load flexible scheduling strategy is established to achieve an effective balance between low carbon emissions and economic performance. The simulation results demonstrate that the strategy reduces the overall cost by 8.57%, reduces the carbon emissions by 35.33%, and improves the renewable energy consumption by 3.5% compared with the unoptimized scheme. [ABSTRACT FROM AUTHOR]

To address the growing demand for green development, governments worldwide have introduced policies to promote a green economy. Among these policies, the carbon cap-and-trade mechanism is adopted as an effective approach to control carbon emissions. Additionally, blockchain may increase transparency in the industrial process. Despite focusing on improving its own green standards, the supply chain needs to establish stable cooperative relationship. Thus, we focus on a supply chain consisting of a dominant manufacturer and a retailer, where the manufacturer opts for implementing blockchain and the retailer selects their stance on fairness. We construct a Stackelberg game model and use backward induction to obtain the equilibrium solutions. In the supply chain, the highest profits can be achieved when the manufacturer adopts blockchain technology, provided that the cost of application is relatively low. For manufacturer and retailer, when the cost of applying blockchain is relatively low, they can both obtain maximized profits without applying blockchain and the retailer does not have fairness concerns. However, as the cost of inducing blockchain and the product's reduction in carbon emission increase, the optimal strategies for manufacturer and retailer begin to diverge, which may affect the stability of the supply chain. [ABSTRACT FROM AUTHOR]

Due to climate change and the urgent need to reduce the greenhouse gas emissions of industrial processes, decarbonizing energy‐intensive industries is highly important. In Europe, emissions trading is the main regulatory instrument providing incentives to replace conventional production facilities with low‐carbon alternatives. Using the example of primary steelmaking, this study aims to evaluate the impacts of product benchmark revisions on the transformation of integrated steel mills. To this end, an optimization model for the strategic planning of economically favorable transformation pathways is developed. The model is combined with a prospective assessment of economic and climate impacts from steelmaking processes. By applying the model to a case study from Germany, legislative conditions in which steel manufacturers are encouraged to transform their production infrastructure are identified. Based on current regulations on product benchmarks for steelmaking, investments into low‐carbon technologies are slowed down until allocations of emissions allowances expire. However, benchmark revisions have the potential to speed up transformation plans significantly. In the analyzed scenarios, the greenhouse gas emissions of primary steelmaking between 2024 and 2034 decreased by up to 15%. These results are further strengthened by sensitivity analyses on the main market influences. Hence, this study provides policy recommendations on favorable revisions of product benchmarks for primary steelmaking. [ABSTRACT FROM AUTHOR]

The objective of this research is to systematically compare the impact of macro determinants on CO2 emissions, using the theoretical frameworks of trade, the Environmental Kuznets Curve, and the Pollution Haven Hypothesis. The study specifically focuses on high‐ and low‐trade‐openness economies from 1995 to 2020. Methodologies employed include stepwise regression, fully modified least squares, pooled ordinary least squares, and fixed effects models. Long‐run dynamics were assessed using Granger causality tests and Pedroni and Johansen cointegration tests. The results indicate both long‐term and short‐term relationships between CO2 emissions and the following variables: (i) gross capital formation (GCF), (ii) per capita income (PCI), (iii) population (POP), and (iv) trade openness. Trade openness has a positive and significant effect on CO2 emissions in highly trade openness economies, whereas it has a negative effect in low trade‐open economies. Highly open economies are more significantly impacted by GCF and POP on CO2 emissions compared with low‐ trade openness economies. Additionally, PCI positively and significantly influences CO2 emissions in low‐ trade openness countries, and this effect is greater than in high‐ trade openness economies. The study also identifies a bidirectional causal relationship between PCI, GCF, and CO2 emissions in both groups of economies, as well as a unidirectional relationship between trade openness, POP, and CO2 emissions in both high‐  and low‐ trade openness countries. [ABSTRACT FROM AUTHOR]

EU recently decided to include shipping, meaning all intra-European shipping and 50% of extra-European voyages, in the EU Emissions Trading System (ETS) beginning in 2024. This article provides an early assessment of the impacts of the EU ETS on the shipping sector's potential reductions in greenhouse gas emissions for different types of ships. It further examines selected mitigation measures and the impact on modals split and costs. The study employs a mixed-methods approach combining quantitative estimates (based on data from the EU monitoring, reporting and verification system) with qualitative data and information from interviews with key actors and from previous literature. This approach aims to provide a comprehensive understanding of the impacts of the EU ETS. The inclusion of shipping in the EU ETS is expected to introduce significant incentives to reduce emissions. We estimate that switching to bio-methanol at an emissions allowance price of €90–100/tCO2 will be cost-effective for a minor share of shipping segments (representing about 0.5-5% of all ships), whereas at a price above €150/tCO2 it could be cost-effective for a considerable share (potentially 75%) of ships. In the short term, the costs incurred by the EU ETS will be passed on to transport customers as a surcharge. The increased cost may, unless properly addressed, drive carbon leakage. Meanwhile, a modal shift away from shipping may occur in the roll-on, roll-off (RoRo) and roll-on passenger (RoPax) segments due to direct competition with road and rail transport and the relative ease of shifting to other modes of transport. Integrating shipping into the EU ETS is an important step towards reducing GHG emissions in the sector but also will reduce emissions of NOX, SOX, and PM. CO2 emissions from shipping constitute about 8% of GHG emissions from all sectors in the EU ETS. The need to purchase allowances will increase operating costs, which will initially be passed on to transport customers as a surcharge. Interviews confirm that a modal shift away from shipping to road and rail may occur in the RoRo and RoPax segments. Switching to bio-methanol may be cost-effective mainly for some ships in the RoRo, RoPax and reefer segments at an allowance price below €100/tCO2, while for most ships (about 85–100% of ships) it will be cost-effective above €200/tCO2. [ABSTRACT FROM AUTHOR]

This paper constructs a unique dataset of clean energy and collects firm-level green innovation data that matches it with provinces and cities. Then, this paper executes quasi-natural experiments on green innovation to examine the effects of China's emission trading policy on green innovation. Further, this paper introduces the interactive terms of the pilot time and pilot area dummy variables into the spatial Durbin model (SDM) and spatial dynamic panel model (SDPM) to construct quasi-natural experiments to examine the spatial effect. The findings confirm a negative association between the 'policy treatment effect' and green innovation. The results also indicate a significant negative association between the emissions trading policy and clean energy. Besides, the empirical results reveal a positive correlation between clean energy and green innovation; clean energy promotes green innovation in the region and the surrounding areas. This paper complements existing research and provides empirical evidence and policy implications for developing clean energy, promoting green innovation, and improving the emission trading policy. [ABSTRACT FROM AUTHOR]

This study investigates the causal relationship between technology innovation and carbon emissions based on data from firms participating in the Korean Emission Trading Scheme (KETS). It is considered that the dynamics of firm innovation and environmental performance vary by industry group because each industry utilizes a different production process and carbon reduction ability. Therefore, in this study, the causal relationships between innovation and emissions are analyzed and compared by industry based on the panel vector error correction model (VECM) and the fully modified OLS procedures (FMOLS). The results show that innovation activities play an important role in promoting the environmental performance of firms at the 5% significance level in the long -run. On the other hand, a firm's sales that represent production activities increase carbon emissions both in the long and short-run. Comparative analysis between industries confirms that the dynamics vary by industry. R&D investments have a significant effect on carbon emissions reduction in the energy industry in the short run, but in the high technology industries such as semiconductors and electronics, environmental regulation plays an important role in inducing technological progress in the short run. [ABSTRACT FROM AUTHOR]

Carbon pricing is a key component of current climate policy agendas. There are a variety of societal and health impacts from carbon pricing interventions (e.g. from improved air quality). A better understanding of potential health impacts and how they depend on context and policy design is crucial to improve the political feasibility and fairness of carbon pricing. Recent reviews have synthesized evidence on the effectiveness, equity and perceptions of carbon pricing and on the health co-benefits of mitigation. This review provides a narrative structured synthesis of the health impacts of carbon pricing. We identified 58 relevant publications of which all were modelling studies. We classify review findings into policy-relevant categories, synthesizing information on how carbon pricing affects health outcomes when implemented in different contexts, in isolation or as part of policy mixes. Findings suggest that internalization of health co-benefits in optimal price level estimates could lead to substantial mitigation in some regions. There are also opportunities to design carbon pricing to improve health outcomes, including through progressive or targeted use of revenues to improve food security, subsidize healthier diets or promote active transportation. Revenue use, price differentiation, market size and permit allocation of emissions trading schemes (ETS), and interaction with other public health or mitigation policies all influence health outcomes. Overall, the health impacts of carbon pricing are highly context-specific and further evidence is needed, particularly on health inequalities and ex-post analysis. However, existing evidence suggests that it is possible to design health-beneficial carbon pricing policies, thus enhancing policy acceptability and feasibility. Key policy insights: Internalizing health co-benefits into optimal carbon pricing estimates could lead to substantial emission reductions in some regions, although additional action is needed to encourage price levels compatible with climate targets Health co-benefits can be boosted through key elements of policy design including price differentiation across commodities and regions, revenue use or ETS design Careful policy design can enhance health gains at a small or insignificant cost in terms of climate mitigation effectiveness and efficiency. The implementation of carbon pricing as part of broader policy mixes with a strong focus on progressivity and equity is crucial to achieving health co-benefits [ABSTRACT FROM AUTHOR]

Civil aviation significantly contributes to "hard-to-abate" emissions, responsible for 2% of global CO2 emissions. This paper examines the most effective policies to promote Sustainable Aviation Fuels (SAFs) in Italy, using a multi-level policy analysis and a stakeholder-based case study approach. The policies reviewed comprise the international, European, and national level. The paper analyses at the international level, ICAO CORSIA and, at the European level, the Renewable Energy Directive (RED), ReFuel EU, and the EU Emissions Trading System (EU ETS) for aviation. Italy has not yet implemented specific policies targeting SAF transition, which is challenging due to commercialization issues and policy inconsistencies. These include the price gap between SAF and conventional fuels, different definitions adopted, and environmental objectives pursued with respect to sustainable fuels by ICAO and the EU. Other challenges include double-counting risks and fuel tankering practices. This article contributes to Italy's SAF policymaking by developing a stakeholder-based quantitative survey, whose results suggest that three measures are key: tax subsidies for technology and infrastructure users, tax credits for upgrading production infrastructure, and tax breaks for SAF-using companies, fuel handlers, and distributors. [ABSTRACT FROM AUTHOR]

Mitigating greenhouse gas emissions and reducing air pollution represent two pressing and interwoven environmental challenges. While international carbon markets, such as the European Union emissions trading system (EU ETS), have demonstrated their effectiveness in curbing carbon emissions (CO2), their indirect impact on hazardous copollutants remains understudied. This study investigates how key toxic air pollutants--sulfur dioxide (SO2), fine particulate matter (PM2.5), and nitrogen oxides (NOx)-- evolved after the introduction of the EU ETS with a comparative analysis of regulated and unregulated sectors. Leveraging the generalized synthetic control method, we offer an ex post analysis of how the EU ETS and concurrent emission standards may have jointly generated sizable pollution reductions in regulated sectors between 2005 and 2021. We provide an aggregate assessment that these pollution reductions could translate into large health co-benefits, potentially in the hundreds of billions of Euros, even when bounding the effect of emission standards. These order-of-magnitude estimates underscore key implications for policy appraisal and motivate further microlevel research around the health co-benefits of carbon abatement. [ABSTRACT FROM AUTHOR]

This article offers insights into how leadership can be provided to advance the EU policy-making process through a case study of the policy-making for the new EU emissions trading system for buildings, road transport and additional sectors (ETS-2). Conceptually, it contributes to the literature on leadership in the EU by developing a three-part framework for observing leadership in EU policy-making, focussing on the intentions of an actor, the effects of the actions of an actor and the perceptions of other actors. The article also contributes to the literature on interactions between leaders in EU policy-making. Empirically, we provide a process tracing analysis of leadership in the policy-making process for the ETS-2. Using our framework, we examine five key leadership moments, showing how Denmark provided cognitive leadership, Germany provided exemplary and structural leadership, and the Commission and rotating Presidencies provided cognitive and entrepreneurial leadership. Our empirical analysis shows that various types of leadership were partially simultaneously and partially consecutively provided, with some leaders following up on the leadership strategies of others. We term this dynamic ‘sequential leadership’. Our finding confirms the importance of seeing leadership as a relationship, not just between leaders and followers, but also amongst leaders. [ABSTRACT FROM AUTHOR]

The emissions trading system (ETS) is one of the effective measures for energy conservation and emissions reduction, and the impact of the carbon ETS can be reflected in the willingness of enterprises to pay for carbon emissions reductions. However, there has been little research exploring the relationship between the two. Therefore, this study fills this knowledge gap by comprehensively investigating the influence of China carbon ETS policy (ETSP) on the willingness of enterprises to pay for carbon emissions reductions, and incorporates environmental awareness (EA), green technology innovation (GTI), and climate risk awareness (CRA) into the research model, thus constructing a new theoretical framework. Empirical analysis is conducted using the structural equation modeling method based on survey data from 478 Chinese enterprises. The results indicate that: (1) the China carbon ETSP can promote the willingness of enterprises to pay for carbon emissions reductions. (2) The China carbon ETSP can also promote the EA, GTI, and CRA of enterprises. (3) EA, GTI, and CRA can also promote the willingness of enterprises to pay for carbon emissions reductions. (4) Mediation effect analysis revealed that EA and CRA, respectively, play a mediating role in the influence process of the China carbon ETSP on the willingness of enterprises to pay for carbon emissions reductions. However, GTI does not have a mediating effect in this process. (5) Comparative mediation analysis found no significant differences in the mediating effects of EA and CRA. This study provides constructive practical recommendations for future carbon market mechanism construction and enterprise emission reduction policy formulation. It also offers guidance and reference for the behavioral decision‐making of enterprises in carbon market transactions, and carries practical significance and policy advocacy value. [ABSTRACT FROM AUTHOR]

Under the constraints of the ‘dual carbon’ goals, investigating the impact of market-based environmental regulations on enterprise value has significant implications for enhancing the enthusiasm and initiative among enterprises to participate and achieving a ‘win-win’ situation in environmental protection and enterprise development. Using the carbon emissions trading pilot policy as a natural experiment and data from eight pilot industries in China's A-share market from 2008 to 2020, this study further investigated the impact mechanisms and heterogeneity of the policy on enterprise value on the basis of the parallel trend sensitivity test and the processing effect heterogeneity test, and examined the effects of the policy on enterprise value using robust estimators. The results showed that: ① After the implementation of the carbon emissions trading pilot policy, the enterprise value in the pilot area significantly increased, and this conclusion held after a series of robustness tests. ② Mechanism analysis found that this policy could improve enterprise value by improving enterprise ESG performance and that analyst attention had a dynamic moderating effect. By adjusting the two paths of the intermediation process, analysts not only adjusted the impact of the carbon emissions trading pilot policy on enterprise ESG performance but also adjusted the impact of enterprise ESG performance on enterprise value, thus strengthening the mediating role of enterprise ESG performance. ③ Heterogeneity analysis showed that the effects of this policy were more pronounced in regions with strong law enforcement, high attention to environmental governance, and an 'open economic order' business environment. Based on these research results, countermeasures and suggestions are put forward, including: focusing on the key links of the implementation of the carbon emissions trading pilot policy; actively improving the allocation mechanism for carbon market quotas and giving full play to their incentive mechanisms; standardizing the behavior of ESG information disclosure, and continuously improving the ‘information transmission’ and ‘external supervision’ functions of analysts to further strengthen the catalytic role of ESG performance. Additionally, the construction of a ‘promising government’ should be strengthened, the important role of local governments to environmental governance should be heeded, law enforcement should be strengthened, a neutral and inclusive competition policy should be maintained, and the high-quality development of the carbon trading market with a competitive open market should be promoted. [ABSTRACT FROM AUTHOR]

Amongst the most devastating extreme weather events in recent years, the 2022 Pakistan floods ostensibly triggered a new-found urgency to reduce emissions and redress other underlying causes of human-induced global warming. Yet multinational corporations and Western governments remain non-committal about shifting away from non-renewable energy, offering meaningful climate and debt financing, or substantively reducing emissions. Meanwhile, the modalities of capital accumulation in postcolonial contexts such as Pakistan are destroying already vulnerable ecosystems, even as they reinforce logics of expropriation and uneven development inherited from colonial times. As Pakistan experiences a demographic explosion and mainstream politics becomes increasingly reactionary, the imperative of posing an alternative hegemonic conception to the dominant development paradigm is ever more acute. This Commentary interrogates the meaning of climate justice so as to bring the global political economy into conversation with the demographic, environmental, and economic trends in the post-colony, with a specific focus on the 2022 floods in Pakistan. It is contended that the Pakistan case can be broadly extrapolated to postcolonial South Asia and sub-Saharan Africa, regions that are home to the fastest growing young populations in the world, and also amongst the most vulnerable to climate change. [ABSTRACT FROM AUTHOR]

The valuation of ecosystem services in high Andean zones, specifically in páramo ecosystems, is essential as they provide livelihoods for local livelihoods through water regulation, water storage, carbon sequestration, protection against landslides and floods, tourism and biodiversity, which is why establishing ecosystem services is essential. The present research focuses on a comprehensive review of peer-reviewed studies related to ecosystem services in South America and Ecuador using Science Direct, Taylos & Francis and Springer databases (search for titles, abstracts and keywords: The search terms used were the combination of the following keywords: "ecosystem services", "payment ecosystem services", "paramo", "Andes", "Ecuador", "grassland". From the bibliographic search, articles were considered only if they met the following criteria: English language articles, focused on high Andean ecosystems, search periods 2010-2020. It has been shown that there are several gaps in ecosystem services issues such as PES (payments for environmental services) as they influence the management of natural resources, also CE (Emissions Trading) are useful to make participants reflect on specific elements of payments for environmental services. The most important findings in this context were the poor distribution of wealth and lack of knowledge of the processes to access these environmental benefits. [ABSTRACT FROM AUTHOR]

The carbon emissions trading system (CETS) is a crucial market-based tool aimed at achieving the goals of “carbon peaking” and “carbon neutrality”, and plays a pivotal role in promoting the green development of the logistics industry. The green total factor productivity (GTFP) of the logistics industry is a key indicator used to measure the green development level of the logistics industry. The research on the CETS and the GTFP in the logistics industry(LGTFP) is currently lacking. Accurately assessing the impact of CETS on LGFP is crucial for improving the construction of the CETS and promoting the green transformation of the logistics industry. Utilizing a combined approach of system dynamics and econometrics, this study examines the effects of CETS on the LGFTP. In this study, the impact mechanism of CETS on the LGTFP is analyzed by constructing a causal relationship diagram using system dynamics theory. And then, we construct a multi-period differencein- difference (DID) model using panel data from 30 Chinese provinces spanning from 2010 to 2020 to verify the impact of CETS on LGTFP. The findings reveal that: (1) CETS significantly promotes LGTFP, and this conclusion is consistent even after conducting robustness tests. (2) Green technological innovation is identified as the primary influencing mechanism of CETS in enhancing LGTFP, while industrial upgrading does not play a positive mediating role, contrary to established studies. (3) Heterogeneity analysis reveals that CETS has a significant promotion effect on LGTFP in central and western regions, and resource-based provinces, but not yet in eastern regions and non-resource-based provinces. Based on the empirical analysis, we propose relevant policy recommendations to improve China’s CETS and promote the improvement of LGTFP. [ABSTRACT FROM AUTHOR]

With the gradual shift from dual control of energy consumption to dual control of carbon emissions, energy quota trading (EQT) and carbon emissions trading (CET) policies will be implemented in parallel in China. EQT policy will significantly affect the market performance and policy effects of CET, which consequently affects the dual control of carbon emissions. Therefore, constructing a system dynamics model coupling the national CET, EQT, and electricity markets, this paper researches the impact of EQT policy and its parameter design on the market performance and policy effects of CET through scenario analysis. The results show that: (1) Implementing EQT policy will reduce CET price and trading volume, negatively affecting CET market performance. This indicates that there is a certain substitution between EQT and CET. (2) EQT policy can enhance the emission reduction and decarbonization effects of CET policy. By curbing thermal power investment and generation and promoting green power, the EQT policy reduces carbon emissions by about 4.87% and optimizes the power supply structure. (3) To scientifically design the EQT policy parameters, lower energy saving targets and energy quota benchmark prices can alleviate the negative impact on CET market performance, but are not conducive to improving CET policy effects. [ABSTRACT FROM AUTHOR]

The transport sector is responsible for around 20% of global CO2 emissions, and road transport alone contributes to three-quarters of that share. A separate Emissions Trading System (ETS) in the EU will be implemented in 2027, covering road transport, buildings and additional sectors (mainly small industry). The likely outcomes of such policy are higher fuel prices, leading to less fuel consumption and reduced road transport emissions. Given that the inclusion of road transport in the EU ETS was originally proposed by the UK in the 2000s, and that the UK is exploring possible improvements to its own UK ETS, it is not impossible that the idea of emissions trading in road transport could be revisited in the UK. This article explores differences in perceptions of fuel price increases as a result of an increase in fuel duties or as a result of the introduction of a parallel ETS for road transport. This research employs a Serious Game to elicit perceptions. The game was designed to create situations where car drivers would need to make decisions in response to an increase in the pump price of fuel. Ultimately, the idea was to get the study participants to reflect on their travel decisions both in the game and in real life. Possible responses included changing their cars, modifying their travel behaviour and moving house. The data was analyzed using an interpretive approach, which contributed to the understanding of how participants experience and rationalize their decisions after fuel price increases. The main finding is that emissions trading seems to be seen more positively than an increase in fuel duties. The study participants associated emissions trading with a reduction in GHG emissions, and fuel duty increases to an increase in pump prices. When they were reminded that emissions trading would also cause pump prices to increase, they still seemed to be open to the idea of such a policy, and when they were reminded that the increase in fuel duties would also be aimed at reducing GHG emissions, they changed their attitude slightly towards a more positive one. [ABSTRACT FROM AUTHOR]

Digital transformation, as a significant shift in optimizing enterprise resource allocation and enhancing information connectivity, offers the opportunity to stimulate the endogenous dynamics of corporate green governance. Employing a sample of 3,002 listed companies in China, a fixed-effects model, and the entropy power method to formulate a green governance index system, this study examines how digital transformation affects corporate green governance concerning carbon peaking and carbon neutrality objectives. According to these findings, the implementation of the digital transformation improves corporate green governance, each unit increase in digital transformation correlates with a 1.91% enhancement in green governance. Moreover, an examination of the mechanisms shows that green governance can be promoted by addressing information asymmetry and enhancing operational efficiency. Additionally, the association between corporate green governance and digital transformation is moderated favorably by strategic aggressiveness. Furthermore, our results indicate that digital transformation contributes significantly to the advancement of green governance within enterprises located in areas with high digital financing and strong technology integration capacities. Digitalization has a stronger effect on promoting green governance for enterprises in pilot regions than in non-pilot regions in terms of carbon emission trading. This study not only assists enterprises in elucidating the developmental trajectory of digital transformation amid carbon peaking and carbon neutrality goals but also provides a reference for decision-making on how digital technology can empower corporate green governance and promote sustainable economic growth. [ABSTRACT FROM AUTHOR]

Carbon emissions trading policies play a crucial role in facilitating the transition to high-end products within high-carbon enterprises. Nevertheless, current empirical analyses of the carbon emissions trading market exhibit a lack of precision and are susceptible to bias in their findings. Limited research has been conducted on the influence of product quality as a potential constraint on the impact of carbon trading on product bargaining power. This study presents a double-difference model utilizing data on emission-control enterprises in China's carbon market to examine the influence of the carbon emissions trading mechanism on the bargaining power of high-carbon products. Empirical analysis is conducted using financial data from listed companies in China spanning the years 2010 to 2020. The findings indicate that the implementation of carbon emissions trading policies has a dampening impact on the product bargaining power of high-carbon enterprises. Moreover, carbon emissions trading policies have heterogeneous effects on the product bargaining power of high-carbon firms with different life cycles, with mature high-carbon firms receiving a boost and declining high-carbon firms receiving a dampening effect. Mechanism test finds that the incomplete transmission effect of cost shocks resulting from carbon emissions trading policies has negatively affect the product bargaining power of high-carbon enterprises. Further research finds that product quality is a key factor in determining the effect of the carbon emissions trading policy, and that the impact of the carbon emissions trading policy on the bargaining power of products of high-carbon firms takes on a "U" shape due to product quality. Once the product quality exceeds the bottleneck value of 0.5956, the policy significantly increases the bargaining power of products. The study confirms that the establishment of carbon markets can effectively increase the bargaining power of superior products. These results offer a comprehensive theoretical and practical foundation for nations to advance the development of carbon markets and facilitate the achievement of sustainable development by high-carbon enterprises. [ABSTRACT FROM AUTHOR]

As a voluntary individual carbon trading mechanism, the carbon generalized system of preferences (CGSP) aims to promote individuals' active practice of low-carbon behaviors through the incentive model of 'who reduces emissions, who benefits from the practice.' It is an extension and expansion of the carbon emission trading mechanism to the individual level, and it is of great significance to evaluate the carbon emission performance of this policy to tap the emission reduction potential of individual society and enrich the environmental policy tool system. Based on the quasi-natural experiment of the implementation of the CGSP in Guangdong Province in 2015, this paper empirically evaluated the policy effect of the CGSP in improving regional carbon emission performance by using the synthetic control method and provincial panel data from 2005 to 2021 and further explored the mechanism of the policy effect. The results showed that the implementation of the CGSP was conducive to improving regional carbon emission performance and promoting the reduction of regional total carbon emissions, per capita carbon emissions, and carbon emission intensity. In the seven years from 2015 to 2021, the policy intervention reduced the total carbon emissions of Guangdong Province by an average of 40.94 million tons, per capita carbon emissions by 0.294 tons, and carbon emission intensity by 0.312 tons/10 000 yuan. This conclusion was still valid after the placebo test, ranking test, and test excluding other policy interferences. Further intermediary tests showed that the CGSP acted on regional carbon emissions through two intermediary pathways: promoting public green travel and reducing electricity consumption. But the mediating path with energy consumption as the mediating variable did not hold. The study reveals the effectiveness of both incentivized and voluntary individual carbon trading mechanisms in environmental governance and makes the following policy recommendations: ① We should pay attention to the emission reduction potential of social individuals on the consumer side, gradually incorporate individual carbon trading mechanisms into carbon emission reduction governance, and encourage local governments to apply and develop the CGSP according to local conditions. ② In the design of CGSP, it is necessary to improve the incentive mechanism in low-carbon travel scenarios and low-carbon life scenarios and improve the convenience of public participation in emission reduction. ③ It is necessary to develop a more scientific carbon-inclusive quantitative verification methodology and build a comprehensive carbon trading system covering the public and industrial enterprises. [ABSTRACT FROM AUTHOR]

We highlight a coordination problem between the EU Emissions Trading System (ETS) and the EU's offshore renewable energy strategy. We exemplify this coordination failure by analyzing carbon leakage effects associated with Denmark's planned North Sea energy island. The Danish energy island project will not start production before 2033, implying a long interval between project announcement and production. Using a dynamic model of the EU ETS, we show that the large time gap between announcement and production likely results in a 'Green Paradox', where the energy island increases aggregate EU ETS emissions. The mechanism leading to the emission increase is complicated and works through the Market Stability Reserve (MSR). The estimated 2050 leakage rate is 145 percent in our main scenario and not below 100 percent in any alternative scenario. We discuss how to improve the climate benefits of the energy island or similar large-scale renewable energy projects. This includes possible revisions to the EU ETS and the role of Power-to-X technologies. There is a coordination failure between the EU ETS and the EU's offshore renewable energy strategy, as projects intended to fulfil the offshore strategy are likely to result in substantial carbon leakage due to the EU ETS. In ETS-covered sectors, there are averse leakage effects associated with emission abatement projects with significant time lags between project announcements and emission abatement like the Danish North Sea energy island. For the North Sea energy island and similar projects, leakage effects can be diminished through policies that mitigate the impact on EU ETS allowance demand. The coordination failure can be eliminated by removing MSR cancellations or the entire MSR mechanism while adjusting the emission cap to hold expected emissions constant. However, removing MSR cancellations amplifies leakage effects for abatement projects with short time lags between announcements and emission abatement, which currently have weak leakage effects due to MSR cancellations. [ABSTRACT FROM AUTHOR]

With the emergence of climate-themed trade measures, it is increasingly crucial to promote the globalization of China's national carbon emissions trading system (C-ETS) with Chinese characteristics in a proactive, systematic, and orderly manner. Existing studies have largely focused on 'point-to-point' responses to international pressure and/or on the construction of a domestic carbon ETS primarily for institutional self-sufficiency. Altogether, the current literature may fail to sufficiently inform authorities, particularly on how to effectively address the urgent need to safeguard economic and trade interests and, further, on how to systematically accommodate the strategic need to enhance low-carbon competitiveness for the future and to assume a more active role under future global governance. Therefore, this study analyzes the three major challenges faced by the C-ETS systematically and, from the interdisciplinary perspectives of law and economics, identifies the theoretical nature and guiding principles of globalizing the C-ETS. Furthermore, based on an analysis of institutional background (i.e., international law and associated carbon-themed guidelines) and practical basis (i.e., associated domestic and international practices and the status quo of carbon-themed global competitions), this study evaluates the technical feasibility, legal compatibility, economic co-benefits, and political desirability of various paths, identifies key areas and low-carbon standards, and further proposes three-stage paths. Ultimately, this study finds that:(1) From the perspective of climate trade policy linkages, the key to globalizing the C-ETS is to leverage China's economic and trade influences to systematically promote low-carbon standards thereof. (2) Differing from international practices, e.g., those of the EU, China's globalization emphasizes the dynamic interaction between climate justice and mitigation efficiency to better balance domestic and global interests as well as climate pledges and domestic industrial competitiveness. (3) Significant differences exist in the goals, implementing entities, and paths of globalization across different fields of mandatory and voluntary ETSs, intersections of trade and climate change mitigation, and mechanisms for sharing carbon costs. Altogether, this study provides theoretical rationale and policy suggestions for public actors at the national, regional, and city levels, particularly as to taking a more prominent role in future global climate governance. It further lays a theoretical foundation for private actors, such as Chinese enterprises, industry associations, and financial institutions, to engage in soft-law-governed global carbon governance. [ABSTRACT FROM AUTHOR]

In the context of "dual carbon", restrictions on carbon emissions have attracted widespread attention from researchers. In order to solve the issue of the insufficient exploration of the synergistic emission reduction effects of various low-carbon policies and technologies applied to multiple microgrids, we propose a multi-microgrid electricity cooperation optimization scheduling strategy based on stepped carbon trading, a hydrogen-doped natural gas system and P2G–CCS coupled operation. Firstly, a multi-energy microgrid model is developed, coupled with hydrogen-doped natural gas system and P2G–CCS, and then carbon trading and a carbon emission restriction mechanism are introduced. Based on this, a model for multi-microgrid electricity cooperation is established. Secondly, design optimization strategies for solving the model are divided into the day-ahead stage and the intraday stage. In the day-ahead stage, an improved alternating direction multiplier method is used to distribute the model to minimize the cooperative costs of multiple microgrids. In the intraday stage, based on the day-ahead scheduling results, an intraday scheduling model is established and a rolling optimization strategy to adjust the output of microgrid equipment and energy purchases is adopted, which reduces the impact of uncertainties in new energy output and load forecasting and improves the economic and low-carbon operation of multiple microgrids. Setting up different scenarios for experimental validation demonstrates the effectiveness of the introduced low-carbon policies and technologies as well as the effectiveness of their synergistic interaction. [ABSTRACT FROM AUTHOR]

Green and low carbon reflect the high-quality development, while income distribution is an indicator of the balance of development. Is there a lack of fairness in the process of green and low carbon transition of enterprises? Using data from A-share listed companies from 2009 to 2016, this paper constructs a DID identification framework for controlling the endogeneity problem using the 2013 carbon trading policy pilot as a quasi-natural experiment to empirically test the impact of corporate low-carbon transformation on corporate labor income share in the context of carbon trading policy. The findings indicate that carbon trading policy decreases the labor income share of firms. In addition, we demonstrate that the low-carbon transition promotes labor productivity, suggesting that the Porter's hypothesis is confirmed in China, but the increase in labor wages is not in tandem with productivity growth, resulting in reduced labor income share. Heterogeneity analysis shows that the impact of carbon trading policy on labor income share is mainly pronounced in larger firms, high technology firms and persistent incumbent firms. Collectively, these results are expected to accurately improve our understanding on the impact of low-carbon transformation of enterprises on income distribution and provide reference for the government to formulate industrial policies and distribution mechanisms under low-carbon economy. [ABSTRACT FROM AUTHOR]

Italy has been defined as the "logistics platform" of the Mediterranean Sea. The Italian port system, with 11.6 million TEUs handled and 61.4 million passengers in 2022 (Assoporti data January–December 2022), is the key to fulfilling this title through adequate levels of reliability, safety, and sustainability. This contribution addresses port logistics and shipping, focusing on primary issues related to the energy sector with a specific focus on what can be observed in the Italian context. Specifically, the decarbonization of the maritime sector and related infrastructural problems (e.g., cold ironing or alternative fuels, where the uncertainty about resource availability and related costs do not allow for easy strategic planning by both the ship owner and the port authority), as well as policies such as the Emission Trading System (ETS), will be analyzed. All these issues, hereafter addressed with a systematic critical review of the existing literature and other relevant sources, could represent the driving force of the growth of the national port sector toward its competitiveness at a global scale. The review was performed through a wide search and analysis of studies published in well-known online research databases (Scopus, Web of Science, IEEE Xplore, ScienceDirect), sector studies, or specialized technical magazines. The review focuses on the results of each analyzed contribution rather than on the analysis method adopted with the final aim to identify useful hints and innovative ideas for further studies on the topic. [ABSTRACT FROM AUTHOR]

Micro coal-fired units (MCFU) and combined heat and power plants (CHP) in integrated energy system (IES) will emit a large amount of carbon dioxide when providing loads to customers, which will lead to higher operating costs of IES. To solve this challenge, an optimal dispatch model of power-to-gas (P2G) and methane reactor (MR) considering the reward and punishment costs based on carbon emission trading mechanism is proposed, to reduce carbon emissions of IES and enhance the accommodation of renewable energy (RE). Subsequently, considering the uncertainty of RE, a combination optimization method for MCFU and CHP units is developed based on the Lagrange multiplier method. Finally, considering the mechanism of electricity spot market (ESM), a transaction strategy for IES participating in ESM is proposed to further enhance the accommodation of RE. The effectiveness of the proposed framework is demonstrated through simulations. [ABSTRACT FROM AUTHOR]

The effectiveness of carbon price in emissions trading schemes (ETS) is an important issue in China in the context of its ambitious climate change goals. This paper adopts a staggered difference-in-differences model to estimate whether China's ETS reduced CO2 emissions while maintaining economic growth even under low carbon prices. The results indicate that despite the low carbon prices, the ETS effectively reduced CO2 emissions without undermining the economy. Specifically, an increase of $1 in the carbon price reduced CO2 emissions by 1.69% and increased the per capita GDP by $286. The carbon price primarily achieved emission reduction and promoted economic development through channels, such as technological innovation, foreign direct investment, energy mix, and industrial structure. Carbon leakage to neighboring regions was not evident. Heterogeneity analysis showed that the environmental effects of the carbon price were more pronounced in regions with higher levels of economic development and CO2 emissions. Conversely, the economic effects of the carbon price were more pronounced in regions with lower levels of economic development and CO2 emissions. The carbon price achieved significant economic effects in regions that solely adopted the free allocation mode of emission allowances, while regions that used a combination of free allocation and auctioning experienced substantial emission reduction effects. Despite low carbon prices, China's ETS effectively reduced CO2 emissions without compromising economic growth. This finding provides new empirical evidence for the effectiveness of carbon price as well as decision support for the future promotion of ETS. Technological innovation, FDI, energy mix, and industrial structure are crucial channels through which the carbon price achieves emission reduction and promotes economic development. The absence of carbon leakage to neighboring regions suggests that ETS is an internally effective mechanism for emission control. Heterogeneity analysis showed that regional characteristics and allowance allocation modes can influence the effectiveness of carbon price, thus emphasizing the importance of targeted policy design and appropriate allocation methods. [ABSTRACT FROM AUTHOR]

According to most climate mitigation scenario assessments, limiting global warming to 1.5–2°C in the long run will not be possible without the extensive deployment of carbon dioxide removal (CDR) from the atmosphere. CDR is required for drawing down and achieving net-zero CO2 emissions by mid-century. Thereafter, CO2 removals will likely need to exceed residual CO2 emissions, resulting in net negative emissions. A policy framework based on 'carbon removal obligations' (CROs) has been proposed to respond to concerns about the financial and fiscal viability, the lack of incentives for CDR uptake, as well as the physical and technological risks associated with any climate mitigation scenario that relies on large scale CDR. Here we propose an updated and improved CRO policy framework, consisting of two core elements: the 'principal CRO mechanism' obliges emitters of a tonne of CO2 to remove a tonne of CO2 at the time of maturity of the CRO. On top of this obligation, CRO holders need to pay a fee for the temporary storage of CO2 in the atmosphere. This 'CRO pricing instrument' is used by regulators to steer the carbon emissions and removals pathways independently. Our update suggests that markets for CDR under the CRO framework should operate independently from markets for emission reductions. We propose a blueprint for legal implementation where CROs are integrated akin to private financial borrowing and debt mechanisms. By aligning CROs with established financial systems, we leverage familiar institutional roles, seamlessly integrating climate mitigation into the core economy. The proposal applies the polluter pays principle to the costs of carbon removal from the atmosphere, whilst providing legal guarantees that the removals will materialize. By placing climate change mitigation pricing levers in the hands of the traditional managers of financial stability, that is, central banks, better account is taken of the externality of carbon emissions as part of core economic and financial management, with the corollary that climate change mitigation response management is better integrated into the economic mainstream. Establishing a standard for the creation of removal units by CDR projects facilitates a more efficient market by reducing transaction costs and enhancing price discovery. Early action by government to put in place legislative measures indicating the direction of policy, and a timetable for introducing CROs, would enhance private sector confidence and engagement in the CDR project sector. [ABSTRACT FROM AUTHOR]

Transitioning to a low-carbon economy while promoting sustainable development requires behavioural changes and mobilization of significant investments. Key instruments being used for that include carbon pricing initiatives, such as carbon taxes and cap-and-trade policies, and, more recently, green bonds. Although the literature has provided some evidence on emission reduction associated with carbon pricing initiatives, there is a lack of investigations on the environmental performance of green bonds; and only theoretical models describe the potential benefits of combining both. Aiming to fill this gap, this study uses regression analysis and annual data for 150 countries between 1990 and 2019 to assess how carbon pricing initiatives and green bonds relate to carbon dioxide (CO2) emissions. This paper makes two main contributions. First, it examines how two climate instruments, carbon pricing and green bonds, relate to CO2 emissions. Previous research has focused only on individual instrument assessments and mainly on carbon pricing. Second, this paper empirically analyses whether there are interaction effects of the two instruments, an assessment not previously undertaken. The results suggest that the implementation of nationwide carbon pricing initiatives is associated with an 11% reduction in CO2 emissions on average. By comparison, green bond issuances are associated with an average 14% reduction in CO2 emissions. Further, no statistically significant interaction effects between carbon pricing initiatives and green bonds were observed. The results must be cautiously interpreted and cannot be attributed solely to the instruments studied since heterogeneous effects, biases from distinct sources, and the existence of complementary policies might influence the results. Carbon pricing initiatives, such as carbon taxes and cap-and-trade schemes, and green bonds are being used to promote the transition to a low-carbon economy. Investigation into green bonds and their impact on emissions is scarce and to date, only theoretical models analysed potential interaction effects of their combination with carbon pricing. The results show an average of 11% reduction in CO2 emissions associated with carbon pricing initiatives and of 14% reduction in CO2 emissions associated with green bonds issuances. While the results show promise in the emission reduction performance of these two instruments, caution in interpreting these results is advised as complementary policies, biases from distinct sources, and evidence of heterogeneous effects make it challenging to disentangle the effect of individual policies. [ABSTRACT FROM AUTHOR]

The work analyzes the contents of the Spanish Decree that determines the procedure for the free allocation of greenhouse gas emission quotas and the exclusions from the European emissions market during the five-year period 2026-2030, all in application of the provisions of the Directive 2003/87 in its consolidated version. [ABSTRACT FROM AUTHOR]

In the supplier–retailer–consumer system, the retailer's replenishment and pricing strategies impact the entire transaction process, forming a comprehensive trading market. Suppliers offer advance-cash-credit payments to retailers, while retailers provide customers with cash-credit payment options. In the current health-conscious consumer market, purchasing decisions are influenced not only by commodity prices but also by the freshness of products, particularly perishable goods. Growing awareness of climate change and the advent of carbon emission policies have raised concerns about the environmental costs of business transactions. This study focuses on perishable products whose demand is influenced by both price and freshness. It explores the adoption of various payment methods by suppliers and retailers, as well as the impact of carbon emission cap-and-trade policies or carbon tax policies on management and pricing strategies. Suitable inventory models are established to determine the optimal replenishment and pricing strategies for maximizing the current value of total profit. We illustrate that the current value of total profit demonstrates joint concavity concerning both the selling price and the replenishment time. Finally, we verify the proposed models using numerical examples and present the findings of sensitivity analyses. The findings of this study yield several valuable insights for inventory management of perishable goods. [ABSTRACT FROM AUTHOR]

With the continuous development of global economic and trade activities, environmental problems have become an important factor restricting the sustainable development of all countries. How to realize the coordinated development of international trade and environmental protection has become a major issue facing the international community. Since China joined the WTO, its share of international trade has been increasing continuously. In order to deeply analyze the influence of international carbon emission trading policy on domestic carbon emissions, we use an input–output model and a GTAP analysis method to theoretically calculate the carbon emissions of the international trade of various departments in Shandong Province. At the same time, the implicit carbon emission index of various industries in 2022 is calculated through the direct energy consumption coefficient. The results show that there are significant differences in the impact of the carbon tariff system on different industries. In terms of the carbon emission index, the food processing industry showed a decrease of 18.99 Mt, while the implied carbon emission of the tobacco, textile and leather manufacturing industry reached 30.56 Mt due to the continuous expansion of trade scale. In contrast, the implied carbon emission level of the metal product processing industry reached 5.3 Mt, while the carbon emission of traditional trading industries such as coal mining was almost unaffected by international trade, and its carbon emission index reached the highest level of 5.89 in 2020. In terms of trade impact, high-trade industries such as the food processing industry are significantly affected by the carbon tariff policy, and their share has dropped from 5.89% to 3.95% in the past decade. The carbon emissions generated by GDP growth established by the GTAP model are more convincing. This model can directly reflect the energy efficiency of a region from the side. Based on the present situation of international trade, this paper analyzes the inequality of the current carbon tariff system, and puts forward some policies to optimize the energy structure to reduce carbon emissions and expand domestic demand to reduce the dependence on international trade. Through the GTAP model, we put forward policy suggestions to optimize the energy structure to reduce carbon emissions and the dependence on international trade by expanding domestic demand. [ABSTRACT FROM AUTHOR]

Ice classed ships have specially designed, reinforced hulls and large engines, which may influence open-water fuel efficiency. Ice classification typically requires minimum engine power limit, possibly leading to an over-sized engine for open water operation. Most of the existing studies of energy efficiency of ice classed ships assume that these vessels consume more fuel also in open water conditions than conventional ships. In this work we analysed the EU Monitoring, Reporting and Verification database to understand the differences of main engine size, light ship mass, payload capacity and real-life reported and verified annual mean fuel consumption between ice classed ships and those without ice class using statistical methods. Ice classed ships were found to have on average 11% more hull mass, 13% more main engine power and 13% less deadweight capacity than ships without ice class, but some vessel types had inversed results. Also, ice class does not predict increased fuel consumption for all vessel types. In addition, according to the Automatic Identification System data, about 47% of vessels with reported ice class did not sail in ice covered areas during 2018–2022. These findings should open the discussion for more precise relief mechanisms of emission trading systems granted for ice classed vessels. • Only around half of the ice-classed vessels that reported to MRV sailed in ice during 2018–2022. • Ice-classed ships have more light ship mass, larger main engines and less cargo capacity than non-ice-classed vessels. • Ice classification does not predict increased fuel consumption for all vessel types. [ABSTRACT FROM AUTHOR]

In September 2020, the European Union (EU) decided to include the maritime industry into the EU emissions trading system to effectively control carbon emissions from ships, namely the maritime emissions trading system (METS). Various allocation and trading schemes are adopted in practice. This paper investigates a comparison of allocation and trading schemes of the METS from the perspective of liner shipping carriers and regulators, respectively. We explore how to determine the optimal allocation and trading scheme of the METS and how the liner shipping route (LSR) choice decision (following or avoiding the METS) and carbon emissions will be affected. For liner shipping carriers, we use a mixed-integer linear programming model that aims to reduce carriers' costs to formulate our problem. For regulators, we present a bi-level programming model that aims to reduce carbon emissions. In numerical experiments, we further analyze the impact of joining the METS on the scheme choice, LSR choice and emissions by considering the European Economic Area and the Red Sea being covered by the METS. Numerical experiments are provided to show the effectiveness of our proposed models. • Investigate allocation and trading schemes of the maritime emission trading system. • Propose a liner shipping route choice problem. • Develop a mixed-integer linear programming model. [ABSTRACT FROM AUTHOR]

Based on monthly economic data spanning from January 2015 to December 2022, we have established an analytical framework to examine the "Russia-Ukraine conflict—financial market pressure and energy market—China carbon emission trading prices." To achieve this objective, we developed indices for financial system pressure, the energy market, and investor sentiment, applying a mediation effects model to validate their transmission mechanisms. Subsequently, the TVP-SV-VAR model was employed to scrutinize the nonlinear impact of the Russia-Ukraine conflict on the valuation of China's carbon emission trading rights. This model integrates time-varying parameters (TVP) and stochastic volatility (SV), utilizing Markov Chain Monte Carlo (MCMC) technology for parameter estimation. Finally, various wavelet analysis techniques, including continuous wavelet transform, cross-wavelet transform, and wavelet coherence spectrum, were applied to decompose time series data into distinct time-frequency scales, facilitating an analysis of the lead-lag relationships within each time series. The research outcomes provide crucial insights for safeguarding the interests of trading organizations, refining the structure of the carbon market, and mitigating systemic risks on a global scale. [ABSTRACT FROM AUTHOR]

Coordinating policies is an essential guarantee for carbon emission reduction and sustainable development. Based on the theoretical framework of the policy paradigm, we quantitatively analyze 266 policy documents on promoting carbon emission trading and green financial policies from 2011 to 2022 using the content analysis research method. Based on the matching network of "policy objectives-policy tools," we analyze the synergistic characteristics of carbon emission trading policies and green financial policies in promoting carbon emission reduction targets and reveal the matching mode of "objectives-tools" of green financial policies by using social network analysis. It is found that, first, from the perspective of policy objectives, the main policy objectives of carbon emissions trading are to promote green innovation of enterprises, and the main policy objectives of green finance are to promote green development, which reflects the consistency and endogenous motivation of policy objectives. Secondly, command-control and market incentive policy tools are the main policy tools in the structure of policy tools. The proportion of public participation policy tools is small, and there is a structural asymmetry. Third, carbon emissions trading tools focus on supervision, adjustment, and platform construction. The green financial policy tools have the characteristics of guidance, public welfare, and externality. The two constitute a complementary, embedded, and integrated ' double synergy ' carbon emission reduction policy. Based on this, this paper puts forward some suggestions to promote policy coordination and provides a reference for China to achieve the dual carbon goal. [ABSTRACT FROM AUTHOR]

How to finance the Green Transition toward net-zero carbon emissions remains an open question. The literature either operates within a market-failure paradigm that calls for carbon taxes or cap-and-trade to help markets correct themselves, or via war finance analogies that offer a "triad" of state intervention possibilities: taxation, treasury borrowing, and central bank money creation. These frameworks often lack a thorough conceptualization of endogenous credit money creation and disregard the systemic and procedural dimensions of financing the Green Transition. We propose "Monetary Architecture" as a more comprehensive framework that perceives the monetary and financial system as a constantly evolving and historically specific hierarchical web of interlocking balance sheets. Using the United States as a case study, we stress the importance of a systemic financing dimension that uses all available elasticity space in the monetary architecture while considering a division of labor between firefighting balance sheets such as central banks or treasuries and workhorse balance sheets such as off-balance-sheet fiscal agencies or shadow banks. Procedurally, public workhorses should provide an initial balance sheet expansion and crowd in the rest of the monetary architecture, notably shadow banks, for long-term funding. Firefighters should prevent systemic instability and manage a possible final contraction. [ABSTRACT FROM AUTHOR]