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Industrial firms in the EU have had to adapt over the past decades to face the increasing pressure of becoming more environmentally responsible. The European Union Emissions Trading Scheme (EU ETS) has played a crucial role in this process, and its impact on participating firms is a matter of debate for researchers, corporate managers, and policy makers alike. Unfortunately, there are only a minimum of models that assess the impact of the EU ETS on individual firms, especially in the context of overall firm performance and dependencies on other (economic and social) factors. For the paper industry, such a study is completely lacking. The authors use the well-established framework of the CSR model and the DC-PROMETHEE method to explore the ranking of paper producing firms in the EU. DC-PROMETHEE considers the effect of the dependencies between criteria that can potentially distort the results. The study revealed that both the EU ETS itself and the links between the evaluating criteria have an impact on the final CSR ranking of the paper producing companies. [Display omitted] • First CSR ranking model for EU paper firms, including environmental factors. • Multi-criteria decision model including the effect of EU ETS at company level. • CSR decision model considering criteria dependencies for unbiased evaluation. [ABSTRACT FROM AUTHOR]

China has implemented a variety of energy efficiency policies to achieve energy saving and carbon abatement targets. While the national carbon market has been launched and China has opted to give market-oriented policies a greater role in achieving net zero, energy efficiency policies still constitute a significant portion of the policy mix. However, the substantial drawback of energy efficiency policies compared to carbon trading, the rebound effect, has made energy efficiency policies debatable. It is crucial to precisely understand the magnitude of the rebound effect to design and implement effective energy policies. Our study estimates and compares the direct energy rebound and output expansion effects in China's manufacturing and service sectors using firm-level data from 2013 to 2016 and employing panel regression analysis. We also analyze the impact of firm characteristics such as ownership status, geographical location, and industry type on enterprises' rebound effects. We found a 33.5% direct rebound effect and a 19.3% output expansion effect in the manufacturing sector. In the service sector, the direct energy rebound effect was 57.9%, a larger one than the manufacturing sector. We also estimate direct energy rebound effects for key manufacturing and service enterprises. Our findings reveal that key manufacturing enterprises exhibit a larger rebound effect compared to the overall manufacturing sector, while key service enterprises show a smaller rebound effect than the overall service sector. Public, foreign, and heavy service enterprises show a smaller energy rebound effect, while northeastern manufacturing and service enterprises exhibit a larger rebound effect. We suggest that China's carbon market should also cover key service enterprises. For those below the threshold, enhancing energy management is essential to mitigate the rebound effect. Aligning with carbon emission cap targets, rather than relying solely on energy efficiency policies, could more effectively achieve energy savings and carbon abatement. • Direct energy rebound effects are identified in manufacturing (33.5%) and service (57.9%) sectors. • Output expansion drives rebound energy use in high-consumption firms. • Rebound effect weakens the effectiveness of China's energy efficiency policies. • Explore the impacts of firm-level characteristics on energy rebound effects in China. • We suggest that China's carbon emission trading scheme cover key service enterprises. [ABSTRACT FROM AUTHOR]

Due to high investment costs and technological uncertainties, the large-scale deployment of carbon capture, utilization and storage (CCUS) technologies faces significant challenges. Consequently, effective policy incentives are essential for catalyzing its growth. As a critical incentivization policy within the dual-carbon strategic objectives, carbon emissions trading can provide crucial support for the investment and operation of CCUS projects. This study aims to identify optimal flows of CO 2 and allocation of carbon allowance, integrating carbon tax and carbon emissions trading policies, while minimizing the regional emission reduction costs. Coal-fired power plants are taken as carbon capture objects, enhanced coal bed methane reservoirs, enhanced oil recovery formations, deep saline aquifers and depleted gas fields are taken as storage objects, and pipelines are taken as transportation mode, respectively. A mixed-integer linear programming model allowing for inter-source carbon allowance trading is developed to minimize the total annualized investment and operational costs of CCUS during the project's operational phase. The proposed model is applied to a specific case study and solved using GAMS solver. The results indicate that, under a framework that permitted carbon allowance trading among emission sources, the case achieves geological storage and utilization of 25.72 million tons of CO 2 annually, with a marginal CO 2 abatement cost of 139 CNY/t. This validates the reliability of the proposed CCUS model under the established carbon emissions trading policy and underscores the effectiveness of permitting inter-source carbon allowance trading measures in reducing the overall costs of carbon abatement projects. • A CCUS model is eatablished with carbon tax and trading policies. • The optimal scheme is determined based on source-sink data. • The model decides the economically optimal deployment of CCUS chain. • A real case is performed to verify the effectiveness of the model. [ABSTRACT FROM AUTHOR]

The division of production leads to the separation of production and consumption, resulting in carbon emissions transfer with trade among regions. Thus, quantifying carbon inequality caused by domestic trade is important for allocating emission-reduction tasks and improving emission-reduction efficiency. Considering domestic value chain (DVC) fragmentation in China, we use multiregional input–output tables to divide products into within-province trade products, traditional trade intermediate/final products, and DVC–related trade products. Then, we examine carbon intensity inequality (CII) under DVC fragmentation and, using Theil index to analyze the contributions of between-province economic differences, within-province trade structures, and related influencing factors to CII. Previous studies have mostly focused on issues related to global value chain fragmentation. We take the lead in exploring CII caused by DVC fragmentation, and for the first time decompose the composition of CII from the perspective of DVC fragmentation. In addition, the national CII is attempted to analyze its contribution at the provincial level for the first time, which is a new improvement and exploration of previous regional research perspectives. The empirical results show that China's CII is on an upward trend, with large changes between 2002 and 2007, and then stabilized between 2007 and 2010 due to the financial crisis, before entering a phase of rapid change after 2012. In terms of regional contribution, between-province inequality is the core to PCII, while within-province inequality is the key to CCII. In terms of province, the changes in between-province inequality are relatively stable at early period. In the middle and late stages, the temporal and spatial changes of PCII and CCII between provinces are obvious with "geographic stickiness" weakening. Specifically, the carbon transfer in the early study period is mostly concentrated in traditional trade products, and the share of carbon transfer in DVC-related trade products later rises significantly from 20.05% in 2002 to 36.32% in 2017, and the value-added transfer rises from 17.09% in 2002 to 27.65% in 2017. In terms of influencing factors, energy intensity remains an important component to CII. In addition, the uncertainties of the data and methodology used in this study are discussed and possible future research directions for expansion are elaborated. Finally, specific policy recommendations for mitigating carbon inequality are presented to inform the development of efficient carbon reduction strategies. • Carbon and value added transfer between provinces is researched under DVC fragmentation. • PEI and CEI are calculated and decomposed from perspective of DVC fragmentation. • PCII and CCII are decomposed based on provincial contributions and influencing factors. • The "geographical stickiness" of carbon transfer between provinces gradually weaken. [ABSTRACT FROM AUTHOR]

In response to climate change, remanufacturing and carbon quota policies have been widely applied to various industries around the world. Existing research tends to discuss government incentive policies for remanufacturers separately from carbon restricting policies for manufacturers, with little analysis of the effects of the simultaneous implementation of both types of policies. The Stackelberg game is a widely used model in integrated energy systems that can be used to effectively solve the management and control problems of integrated energy systems. This study takes carbon quota policy and production subsidy as the background, constructs the game model consisting of government subsidy and carbon quota policy under different allocation methods, and compares optimal decision-making, environmental benefit, and consumer surplus with a single subsidy policy or a single carbon quota policy. We built a coordination mechanism to improve the whole supply chain, and the results show that compared with a single policy, the combination of government subsidy with the benchmarking law is more conducive to maximizing the profits of remanufacturers. Appropriate governmental subsidies can also help those original equipment manufacturers make greater profits if they adjust their emission reduction investment in time. Appropriate government subsidies and emission reduction investment can stimulate both the production and consumption of new products. With adequate subsidy, the combination of the grandfathering law and government subsidy is more conducive than the single policy to improving the effectiveness of emission reduction policies. In addition, consumer surplus is higher under hybrid policies than under a single policy. With the implementation of hybrid policies, cost and fixed cost sharing mechanisms can further improve overall supply chain profitability. These findings suggest that the Chinese government should prepare various policies while considering market development and industrial goals and use subsidies as a tool to support remanufacturers. [ABSTRACT FROM AUTHOR]

This study examines the impact of CETs on reducing carbon distortion through a two-step approach. Firstly, we measure carbon distortion by treating carbon emissions as an important input factor in the Cobb-Douglas production function. Secondly, we use a staggered difference-in-differences (DID) strategy to test the impact of CETs on carbon distortion. Our research indicates that CETs significantly reduce the carbon distortion, and this mitigating effect is more significant in provinces with better ecological foundations, lower levels of urbanization, and higher levels of financial development. We also find that CETs mitigate carbon distortion by promoting the advancement of regional green financial growth and green innovation. The findings of our research have important implications for maximizing the market potential of carbon emissions trading systems and a nuanced understanding of the effectiveness of market-based mechanisms in mitigating environmental inefficiencies. • Carbon emissions are incorporated into the Cobb-Douglas production function to measure carbon distortion. • The staggered DID strategy is used to verify the effects of carbon emissions trading systems (CETs) on carbon distortion. • CETs can significantly mitigate carbon distortion caused by the misallocation of resources. • The better ecological foundation, lower urbanization and higher financial development are, the more obvious the effect is. • CETs mitigates carbon distortion by promoting regional green financial growth and green innovation. [ABSTRACT FROM AUTHOR]

Global environmental problems are worsening. Among various regulatory measures, market-oriented approaches are most favored by governments worldwide. Using provincial panel data from 2004 to 2020, a multi-period DID model was hereby constructed to empirically study the pollution reduction effects of the pilot policy for carbon emissions trading in China. Findings of this paper could be listed as follows: (1) The pilot policy has achieved notable reductions in waste gas and solid waste, although its effect on wastewater pollutants has been less pronounced; (2) Pollution reduction in the pilot regions can be achieved by optimizing the energy consumption structure; (3) Significant variations in pollution reduction effects are observed between the Northern and Southern pilot regions, with notably stronger policy effects in the north across various pollutants compared to the south. Overall, this paper offers pertinent policy recommendations to aid the Chinese government in enhancing its carbon market. [ABSTRACT FROM AUTHOR]

As major strategic development areas in China, the provinces around the Yangtze River are facing the pressure of large aggregate CO 2 emissions and high per capita CO 2 emissions. The study on the pathway of reducing CO 2 emissions and increasing carbon sequestration will help China better clarify the ways realize the goals of carbon peak and carbon neutrality as soon as possible. In this paper, the extended STIRPAT model and OLS regression were used to establish a prediction model to estimate the CO 2 emissions during 2010–2060 under different scenarios. Meanwhile, the InVEST model was used to estimate the carbon sequestration, and the comparison with the CO 2 emissions was analyzed. The results show that Qinghai and Yunnan have achieved the goal of carbon neutrality in 2010. Under the low-carbon and energy-saving scenario and the baseline scenario, all provinces within the study area are anticipated to attain their emissions peak by 2030 or earlier, and the CO 2 emissions peak value of the whole study area is 3111 Mt and 3199 Mt, respectively. While under the high emissions scenario, only Chongqing and Qinghai will reach the emissions peak in 2030, and the whole study area will reach the emissions peak in 2040, with peak value of 3470 Mt. Under the three scenarios, the whole study area cannot achieve carbon neutrality before 2060. Only Sichuan and Hubei can achieve carbon neutrality in 2050 and 2060 under the low-carbon and energy-saving scenario. All provinces and municipalities in the lower reaches of the Yangtze River are facing huge pressure of emissions reduction. The research reveals that the goals of carbon peak and carbon neutrality should be achieved by developing clean energy, transforming industrial structure, increasing carbon sequestration and improving carbon emissions trading system. [Display omitted] • The CO 2 emissions showed a pattern of increase during 2010–2020. • The whole study area will achieve carbon peak by 2040 or earlier. • The whole study area cannot achieve carbon neutrality before 2060. • The realization pathway of carbon peak and neutrality was proposed. [ABSTRACT FROM AUTHOR]

As the largest energy consumer in the world, China maintains a tightly interconnected energy market in the international arena. Therefore, it is necessary to explore the interdependence and spillover effects between the carbon emissions trading markets, traditional energy markets in China, and International markets. We explore changes in risk in the Chinese energy market with the introduction of the Chinese carbon market by employing the Vine Copula function to construct a vine structure and analyse the complex interdependence among markets. Moreover, we utilise the Time-Varying Parameter Vector Auto Regression and Diebold-Yilmaz Spillover Index (TVP-VAR-DY) method to examine the dynamic spillover effects of risk across various markets. Empirical analyses reveal a strong interdependence between the carbon emissions trading market and the traditional energy market. The Brent crude oil market occupies a central position within the system and significantly influences other markets. The carbon emissions trading market on the periphery has little impact on the system. Additionally, significant volatility spillover effects—observed between the carbon emissions trading market and traditional energy market systems—are closely correlated with economic conditions and extreme events, demonstrating time-varying characteristics. Furthermore, the Chinese carbon emissions trading market effectively reduces risk spillover in traditional Chinese energy markets from international markets during periods of risk contagion, particularly during times of high volatility, which can offer policymakers a novel path for risk management and provide investors with new avenues for investment hedging strategies. [ABSTRACT FROM AUTHOR]

Under the background of digitalization and green development concept, exploring the road of manufacturing power is an important hand to promote the high-quality development of economy. The article constructs a triple difference model based on the list of emission-control enterprises of carbon emissions trading mechanism and China's pilot cities of supply chain innovation and application, and empirically investigates the impact of policy synergies of carbon emissions trading mechanism and supply chain digitization on the competitiveness of manufacturing enterprises by using the data of listed companies in the manufacturing industry from 2010 to 2022. The results show that the policy synergy effect of carbon emissions trading mechanism and supply chain digitization can improve the competitiveness of manufacturing enterprises. The impact mechanism test shows that the policy synergy effect of carbon emissions trading and supply chain digitization can enhance the competitiveness of manufacturing enterprises by alleviating the degree of cost-price incomplete transmission, promoting technological innovation, and improving the efficiency of resource allocation in the manufacturing industry. The direct impact of product quality on carbon emissions trading mechanism and supply chain digitization has a "U"-shaped moderating effect, when product quality is below the bottleneck of 0.418, exacerbating the fluctuation of production costs of enterprises, carbon emissions trading mechanism and supply chain digitization will have an inhibitory effect on the competitiveness of manufacturing enterprises. The conclusion confirms that the policy synergy effect of carbon emissions trading mechanism and supply chain digitization can promote manufacturing enterprises to improve competitiveness. However, manufacturing enterprises should pay attention to product quality, and if product quality is not dominant, carbon quota constraints and supply chain digitization will likewise inhibit the competitiveness of manufacturing enterprises. This study provides important policy insights for countries to actively promote the construction of carbon emissions trading mechanisms and stimulate the momentum of digitalization and high-quality transformation of manufacturing industries. [Display omitted] • Carbon trading and supply chain digitalization can boost manufacturing firms' competitiveness. • Cost Transmission, Technological Innovation and Resource Allocation as Impact Mechanisms. • Product quality has a U-shaped moderating effect with an inflection point of 0.418. • Revealing complex policy interaction effects using triple difference models. • Provide a basis for manufacturing firms to develop strategies to improve their competitiveness. [ABSTRACT FROM AUTHOR]

The Chinese government has made a positive response and policies to address global climate change, regions and sectors has become more important in reducing carbon emission. This study used the indicator of carbon emission intensity to evaluate the reduction effect of carbon emission of heavy-polluted regions and sectors, and also their features in China. The results indicated firstly, the aggregated carbon emission intensity of regions was primarily influenced by their embodied added value. From 2012 to 2015, the regions' embodied added value increased more than 2 times. Secondly, the embodied carbon emission of the manufacture of chemical products sectors in regions were dominated by emission implied in metabolic path length greater than five, which took the proportion of more than 30% of emission. This showed that emission reduction policies for heavy-polluted sectors should focus on controlling the emission implied in trading with downstream sectors, and also demonstrated that the heavy-polluted sectors drove the reduction of carbon emission of other sectors. Thirdly, the carbon emission of heavy-polluted sectors in coastal regions fell due to implementing the carbon emission trading scheme policy, while heavy-polluted sectors in the inland regions radiated to their upstream and downstream sectors. This study analyzes regional and sectoral carbon emission reduction effect and provides theoretical and practical bases for urban development. [ABSTRACT FROM AUTHOR]

The Carbon Emission Trading (CET) system has been independently implemented in dozens of countries to protect the environment. Meanwhile, there are efforts underway to establish a Unified Global CET (UG-CET) system, which aims to better coordinate emission reduction efforts worldwide and protect the global environment. However, these efforts overlook the issue of data security, which may raise concerns for countries considering participation in such a system. In this paper, we propose a UG-CET system that addresses data security concerns. Firstly, it safeguards cross-border data by not requiring countries to share detailed data, but only providing generalized data. Secondly, it is capable of auditing data, ensuring data consistency even in the absence of shared original data. Therefore, it respects the interests of participating countries by not only protecting their own data but also ensuring the authenticity of data shared by other countries. Finally, the proposed scheme is validated using authentic CET data, and the results demonstrated that it can maintain a high efficiency while achieving a verification accuracy of 99.6%, effectively ensuring the security and consistency of the data flow in carbon emission trading. [Display omitted] • A unified global carbon emissions trading framework is established. • The framework focuses on addressing the data security issues, aiming to enhance the data quality. • It avoids the cross-border transfer of detailed carbon emission data. • It not only results in efficient audits but also protects the data security on Country Chain. [ABSTRACT FROM AUTHOR]

Since General Secretary Xi Jinping pledged the "30·60" targets to the world, the importance of pollution reduction and carbon reduction has become increasingly prominent. The previous focus on the pollution reduction effects of emission trading systems, while overlooking their carbon reduction impacts, as well as the limitations of research methods and scope, is no longer suitable for the needs of the new era. Therefore, this paper constructs a CGE model to study the synergistic effects, simulating the synergistic emission reduction effects of sulfur dioxide emission trading policies, and comes to the following conclusions: After the implementation of the sulfur dioxide emission trading mechanism, under different sulfur price scenarios, the synergistic reduction amounts of SO 2 and CO 2 vary greatly. As the sulfur price increases, the reduction amount becomes larger. In the five sulfur price scenarios set in this paper, the maximum reduction of SO 2 can reach about 111,400 tons, and the maximum for CO 2 is about 399 million tons. The CO 2 reduction rate is approximately 1.0767 times that of SO 2. This indicates that the sulfur dioxide emission trading policy is a very effective path for synergistic pollution and carbon reduction, with good reduction effects. In addition, sulfur dioxide emission trading will reduce the consumption of fossil energy, decrease industry output, raise product prices, cause GDP loss, and lead to reduced social welfare to varying degrees. [ABSTRACT FROM AUTHOR]

Emissions trading is one of the strategies that may be adopted by corporations seeking to reduce their carbon footprints. Carbon credits can be purchased from firms that perform better than their expected emissions cuts, or from companies that generate carbon dioxide removal using negative emissions technologies. Carbon trading is subject to constraints depending on the rate of generation or consumption of these credits, as well as the timeframe of these flows. In this work, a process integration -based approach is developed for planning carbon trading among corporations. A new pinch analysis methodology is proposed in this work for finding an optimal trading scheme among corporations buying and selling carbon credits. The combination of time intervals during which the credits are generated and purchased by different firms defines a planning horizon within which trading occurs. In the initial targeting step, the overall potential for carbon trading among firms is determined; this step also finds the temporal bottleneck (pinch point), the required import of carbon credits prior to this point in time, and opportunities to export surplus carbon credits afterward. The methodology can be implemented using either a new graphical tool called carbon trading pinch diagram, or the algebraic carbon trading method. Both approaches lead to the construction of the grand composite curve (GCC), which gives in-depth information about how to meet the targets. Three illustrative case studies show how the methodology can be used to identify targets for performance benchmarking, and generate allocation networks that achieve these targets. The graphical approach generates the composite curves for easy visualization, while the algebraic approach is used for speed and accuracy. [Display omitted] • Pinch analysis for optimizing carbon credit trading. • Targets carbon credit import before pinch point. • Graphical and algebraic variants can be used. • Grand composite curve identifies the timing of imports and exports. [ABSTRACT FROM AUTHOR]

Although the carbon emission trading regulation proves its advantage of reducing abatement costs, the timing of operating activities makes overage or shortage of allocated emission allowances quickly happen in single-year compliance, thus increasing abatement costs. The provision of inter-period emission credits banking and borrowing in a multi-period compliance phase can give emitters flexibility in emission compliance, which practices world-widely. In this study, we investigate the impact of carbon trading with inter-temporal emission credits borrowing and banking on a production–inventory–distribution system's supply chain network decision-making and its compliance strategies by proposing a novel two-stage stochastic programming. A scenario-based robust optimization approach is presented with a post-optimization stage to obtain robustness-profit-environment balanced decision-making considering uncertain demand and stochastic carbon-trading price. The results suggests emitters should adopt specific greener techniques to reduce related emissions with priority under carbon-trading policies. The results also show the provision of carbon credits borrowing and banking has a positive influence on enhancing the efficiency in supply chain economic and ecological performance. Besides, given the flexible provisions, the manager can reallocate emission credits according to its business's operation, and transfer more emission credits to periods of higher carbon-trading price. This findings also suggest banking in early periods instead of carelessly borrowing from future, for uncertainty in future business might make it harder or impossible to comply with emission regulation at last. To regulators, it should prevent borrowing explicitly or allow it only to a limited extent. [ABSTRACT FROM AUTHOR]

This study introduces three production technology shocks (Energy manufactures, Brown enterprises, and Green enterprises) by constructing different models, namely, the environment sector (baseline) model, the carbon emissions trading scheme (ETS) model, and the carbon emissions rights trading mechanism. The fluctuation trend of China's macroeconomic and environmental quality before and after the establishment of carbon market is compared and analyzed. Additionally, the study examines the welfare of the implementation of carbon market policies. The carbon trading market policy can promote the synergistic efficiency of China's pollution reduction and carbon reduction using energy and green production technologies. From the perspective of social welfare, the optimal range of the initial carbon quota ratio issued by the government to enterprises is [0.7,0.8]. The findings of this study provide theoretical support and contribute toward understanding the impact mechanisms of carbon market and technological progress on synergizing the reduction of pollution and carbon emissions in China. [ABSTRACT FROM AUTHOR]

This study aims to explore the direct and indirect impacts of the Carbon Emission Trading System (CETS) on the green transition development (GTD) of Chinese cities. This paper constructs a GTD evaluation system from the perspective of prevention and governance at the source, in terms of carbon reduction, pollution reduction, green expansion and growth, and measures the GTD performance of 281 cities based on the EW-TOPSIS model. It is found that the average increase in GTD of the sample cities from 2006 to 2020 is 3.40 %, the GTD progress of the 281 cities has a considerable positive spatial autocorrelation, with the GTD progress of the CETS pilot cities being significantly bigger than that of the non-pilot cities. Further this paper adopts the spatial difference model (S-DID) to scientifically identify the influence mechanism and heterogeneity of the direct and spatial effects of CETS on city GTD, and the results show that CETS has a positive effect on the GTD of both local and neighboring cities. Propensity score matching (PSM) is used to further corroborate these findings. The study also shows that CETS improves local GTD by promoting green innovation, rationalizing industrial structures, and enhancing energy efficiency in cities. Nevertheless, the ensuing siphon effect hinders nearby cities' levels of energy efficiency, industrial structure rationalization, and green innovation. The policy effects of CETS are more significant in large cities, eastern cities, old industrial areas, and non-resource-based cities. CETS can work in synergy with smart city construction, low-carbon city pilot policies, and emission trading policies to accelerate the process of GTD. [ABSTRACT FROM AUTHOR]

Government-enforced regulations and incentives are primarily intended to promote sustainability. Consumers' growing concern about the environmental impact of the products they consume, including meat and dairy products, further drives this shift. As a result, livestock farming companies are consequently prioritizing environmental sustainability efforts. Strict environmental restrictions in Europe, Canada, and the USA make it challenging for industrial livestock farms to abide by them without jeopardizing their profitability. This work illustrates the business of a livestock farm operated under environmental regulations, including cap-and-price, cap-and-trade, cap-and-offset, and carbon tax policies. Under a quantity-based all-units and prepayment scheme, the company buys a single kind of newborn-growing items from a supplier and sells them after slaughter when they have gained the desired weight via feeding. The whole targeted live weight is not consumable after slaughtering due to instant weight loss during bleeding and the removal of various non-edible components from the growing items. Incorporating this attribute, the current work derives sustainable inventory and pricing decisions for a livestock farm for the first time. Furthermore, the consumption rate of the edible components of growing items is adopted as a power form of both selling price per weight unit and storage duration. To determine whether a single or a series of prepayment installment strategies is more cost-effective for the company, important criteria are defined. Finally, several salient recommendations for the farm are extracted to not only gain economically but also preserve the environment by lowering its carbon footprint. When the carbon tariff rate is higher than the reward rate, the cap-and-trade policy outperforms the cap-and-price, cap-and-offset, and carbon tax mechanisms in terms of profit. However, both cap-and-trade and carbon tax regulations perform equally better than the cap-and-price and cap-and-offset regulations in terms of released emissions. • This work illustrates the business of a livestock farm operated under environmental regulations. • Inventory model considers quantity discount, power demand pattern, prepayment and carbon policies. • The cap-and-price, cap-and-trade, cap-and-offset and carbon tax policies are studied. • Some recommendations are stated for the livestock farm for preserve the environment. [ABSTRACT FROM AUTHOR]

Under carbon cap-and-trade regulation, to control carbon emissions and improve the recycling efficiency of waste electrical and electronic equipment (WEEE) from the traditional offline recycling channel, more enterprises attempt to simultaneously combine the online recycling platform with the digital transformation of the supply chain. Based on a closed-loop supply chain (CLSC) with dual recycling channels and considering recycling advertising invested both in offline and online recycling channels, this paper attempts to explore the optimal recycling advertising mode which can both achieve economic and environmental performance under cap-and-trade regulation. Therefore, game models including a manufacturer and above either recycler are established, which are respectively correspond to four recycling advertising modes: manufacturer cooperates with neither recycler (MO mode), manufacturer only cooperates with the offline retailer (MR mode), manufacturer only cooperates with the online recycling platform (MT mode), and manufacturer cooperates with either recycler (MRT mode). Consequently, this paper solves the optimal decisions of the tripartite and focuses on the analysis of the impact of cooperative (competitive) recycling advertising under cap-and-trade regulation. By comparing the profits and total carbon emissions of the whole CLSC under four recycling advertising modes, the results indicate that: cooperative advertising between the manufacturer and two recyclers can achieve economic and environmental performance for the whole CLSC if the free-riding phenomenon occurs in recycling advertising. Otherwise, influenced by competitive recycling advertising, the above mode turns to the suboptimal one for the profits of two recyclers and the total carbon emissions of the CLSC. Moreover, driven by economic benefits, cooperative advertising will eventually become a consensus, but the total carbon emissions may not always be the least. [ABSTRACT FROM AUTHOR]

To mitigate climate change and achieve sustainable development, Chinese governments have introduced "1+N" "dual-carbon" policy system aimed at reducing CO 2 emissions, transforming energy structures and controlling pollution. An effective policy mix and synergy is crucial for achieving the emission reduction targets and for ensuring the effectiveness of the policies, and it is therefore of great practical importance to provide a pathway for policy synergy based on assessing policy effectiveness. This paper selects three policies, namely the carbon Emission Trading System (ETS), Coal Control and Clean Utilization (CCCU), and Green Financial Reform and Innovation Pilot Zone (GFPZ), sets up ten scenarios, adopts difference-in-differences (DID) models to evaluate the impact, and give a pathway for policy synergy. The results show that ETS, CCCU, and GFPZ policies have significant positive effects on carbon emission reduction, energy structure transformation, and industrial environmental pollution control, respectively; CCCU has synergistic effects with ETS and GFPZ policies in controlling coal consumption and increasing the completion of industrial pollution control investments, respectively; while GFPZ policies have conflicting effects with CCCU and ETS in reducing carbon emissions and coal consumption, the GFPZ policy has conflicting effects with CCCU and ETS in reducing carbon emissions and controlling coal consumption. Finally, the study proposes a phased policy support system around carbon emission reduction in the power generation industry, energy structure transformation, and industrial environmental pollution control before 2030 and from 2030 to 2060. [ABSTRACT FROM AUTHOR]

The carbon emission trading scheme (CETS) has been gradually introduced in China to control carbon emissions and boost economic and social development. The existing literature has evaluated the market potential of pilot CETSs or a certain industry, yet no study has focused on the industrial sectors to be covered in the national CETS to analyze trading flexibility and the sector inclusion sequence. This study presents an analytical framework for estimating market potential (i.e., potential gains and carbon emission reduction potential) and industrial sector inclusion sequences for China's national CETS using by-production models. Three simulation scenarios (i.e., no-trading scenario, power sector trading scenario, and multiple-industry trading scenario) and two trading modes (i.e., contemporary and intertemporal trading mode) are simultaneously considered. The novel evidences are: (i) There would be 39.93% (27.7 trillion CNY), 65.26% (273.0 trillion CNY) and 159.42% (666.7 trillion CNY) national aggregated potential gains of CETS in intertemporal power sector trading scenario, contemporary multiple-industry trading scenario and intertemporal multiple-industry trading scenario, and they would help save 3.60%, 5.18% and 6.05% of CO 2 emissions reduction, respectively. (ii) CO 2 emission permits would transfer from nonmetal minerals, ferrous metals, and electricity, to paper making, non-ferrous metals, petrochemicals, and chemicals under the intertemporal multiple-industry trading simulation. (iii) Based on the principle of potential gain maximization, it is recommended that the sector of smelting and processing of non-ferrous metals should to be included as the next sector in national CETS. The results show that national CETS has great market potential for achieving China's joint carbon control and economic growth goals. [ABSTRACT FROM AUTHOR]

The Emission Trading Scheme (ETS) is an essential instrument tightly interconnected with the stock and energy markets. This study innovatively incorporates the ETS, stock, and energy markets into an integrated framework to model the return and volatility spillovers. We utilize a dynamic Time-Varying AutoRegressive procedure grounded in both the temporal and frequency domains. Our findings certify time-varying effects in both return and volatility spillovers. Remarkably, extreme events such as the COVID-19 pandemic and New Zealand's ETS-led policies have contributed substantially to these spillovers. Specifically, for return spillovers, the price movements of the stock and the crude oil markets are distinctly influenced by the ETS and electricity markets. On the other hand, volatility spillovers in stock and energy markets are predominantly dominated by the ETS. Furthermore, return and volatility spillovers exhibit substantial heterogeneity across different frequencies, with long-term effects making up the most considerable portion of cross-market spillovers. These findings help gain a deeper understanding of dynamic feedback effects and offer valuable implications for policymakers and market participants. [ABSTRACT FROM AUTHOR]

Influenced by energy prices, macroeconomic factors and policy factors, the price of the European carbon emissions trading market has changed significantly. Effective measurement of price risk of the European carbon emissions trading market is of practical importance for market participants. Two measures Value at Risk (VaR) and Expected shortfall (ES) are used to assess price risk. Based on the dynamic score (DySco) model and skewed Student-t (SKST) distribution, the DySco-SKST model is constructed and used to predict the price risk. The unconditional/conditional coverage tests, dynamic quantile test, Actual over Expected ratio, mean and maximum Absolute Deviation, quantile loss and FZ loss are used to evaluate the VaR and ES prediction performance. The daily spot closing prices of EUAs from January 3, 2013 to November 23, 2018 are used. The empirical results show that the VaR and ES prediction performance of the DySco-SKST model is better than that of the DySco-N and DySco-ST models. The VaR and ES prediction performance is affected by the parameter re-estimation scheme, but not by the parameter re-estimation frequency. The DySco-SKST model is better at predicting VaR and ES under the rolling window than under the expanding window. [ABSTRACT FROM AUTHOR]

Currently, numerous studies are being conducted on various carbon reduction policies, but their synergies have been poorly investigated. This paper examines the synergistic effect of combining emissions trading schemes (ETS) and energy carbon-content taxes (ECT), using China as a case study. A computable general equilibrium model is used to identify the synergistic effect of these two carbon mitigation policies. The results show that the synergistic effect helps to reduce GDP loss by approximately 5.44 billion CNY, which accounts for 2.83% of the overall GDP losses caused by ETS and ECT. Additionally, the synergistic effect reduces an additional 5.25 million tons of CO 2 emissions and decreases the negative impact on social welfare resulting from the two policies. Although these achievements are commendable, there are costs associated with this synergy. The effect on energy security presents mixed results and leads to increased carbon leakage. Therefore, policymakers should take heed of the potential "cocktail effects" that may arise in their pursuit of carbon neutrality. [ABSTRACT FROM AUTHOR]

This study investigates the impacts of carbon pricing policies on firms' greenhouse gas (GHG) emissions. We include two carbon pricing policies: carbon tax and emission trading scheme (ETS) at national and sub-national (province) levels, measured as policy existence (binary variable) and carbon price (continuous variable). Firms' GHG emissions are measured as total emissions and emission intensity. Using unique recent firm-level data from 2010 to 2021 from three East Asia countries (Japan, the Republic of Korea (ROK), and the People's Republic of China (PRC)), we obtain the following key findings. First, the national carbon pricing policy significantly reduced firms' GHG emissions and GHG emission intensity in Japan and the ROK. The greater the carbon price, the greater the impact. Second, the subnational carbon pricing policies implemented in two provinces of Japan (Saitama and Tokyo) decreased firms' GHG emissions. Third, heavy industry sectors such as energy, utilities, and industrials experienced a substantial decrease in GHG emission intensity due to the carbon pricing policy. Finally, our main results are robust to different model specifications and various measures of firms' GHG emissions. Although literature studying the ex-post impact of carbon pricing on emissions at country and sector-level is abundant, this paper contributes to the existing literature providing empirical evidence of the impact of carbon pricing policies on firms' emissions using firm-level data, which is highly limited especially in Asia. [ABSTRACT FROM AUTHOR]

Under carbon cap and trade policy, engineering machinery firms have engaged in remanufacturing and invested in carbon emission reduction technologies. However, they often struggle with a lack of funding, but carbon quota financing offers a solution. Taking a capital-constrained engineering machinery remanufacturer as the research object, this paper first formulates four decision models, i.e. (no capital constraints, no financing), (capital constraints, no financing), (capital constraints, carbon quota repurchase financing) and (capital constraints, carbon quota pledge financing), then the equilibrium results are compared. Finally, the numerical simulations are performed to study the impact of carbon emission reduction and quality uncertainty of recycled products. The results show that if remanufacturers possess adequate carbon quotas, carbon quota pledge financing can always improve profits effectively, otherwise, the effectiveness of financing strategies depends on the difference between extra profits and financing costs. Both financing strategies can increase the output of new products and reduce that of remanufactured products. Increasing the quality threshold of recycled products is beneficial for remanufacturing, environmental protection and profits. Investing in carbon emission reduction benefits remanufacturing and the environment, however, it reduces remanufacturers' profits in the short term. [Display omitted] • Quality uncertainty of recycled products is considered in remanufacturing. • The importance of improving quality threshold is revealed. • Financing and carbon emission reduction investment are considered simultaneously. • The optimal carbon quota financing strategies are derived. [ABSTRACT FROM AUTHOR]

When seeking a low-carbon energy transition, market incentives are less costly, the most representative of which have been tradable green certificate (TGC) and carbon emission trading (CET). However, the coordination of these two incentives has been ignored, resulting in economic and environmental conflicts. Therefore, this study considered TGC and CET policies and proposed a multi-objective equilibrium model through a power generation and trading plan that minimizes carbon emissions and total costs. A case study from Guangdong, China, is given to demonstrate the practicality of the proposed model, from which it was found that an econo-environmental equilibrium plan could reduce carbon emissions by 13.2% with only a 2.3% increase in total costs. To explore the policy impacts, sensitivity analyses of quotas and five-scenario analyses considering different decision-makers' preferences were conducted. It was found that when the free CET quota varied from 0.95 to 0.25, there were carbon emissions reduction redundancies, and TGC quota changes exposed provincial disparities in wind and solar power generation and trading promotion. The mix policy decreased coal power generation and, depending on government preferences, conditionally promoted solar power generation and trading. Policy suggestions to better coordinate the market incentives are also given. [ABSTRACT FROM AUTHOR]

The existing research on carbon emissions embodied in trade has been concentrated between net importing countries and net exporting countries. Few study has been conducted to analyze carbon emissions embodied in trade between net exporting countries. To fill the research gap, this work systematically investigated the net carbon emissions embodied in trade between the largest net exporter of developing countries (China) and the largest net exporter of developed countries (German) based on the non-competitive input-output analysis. And the structural decomposition analysis was used to study the driving factors effecting the change of net embodied carbon emissions in Sino-German trade. The results show the net carbon emissions embodied in Sino-German trade increased significantly with the sharp increase of net trade volume after China's accession to the World Trade Organization. Carbon transfer through trade was mainly concentrated in the carbon-intensive industrial sectors in Sino-German trade. This phenomenon was attributed to the differences in the trade structure and the production efficiency between China and Germany. The decomposition analysis shows China's intermediate input structure effect and the country structure effect of Germany's final demand were the leading contributors to growth in net carbon emission in Sino-German trade, which mainly was offset by China's carbon intensity effect. Finally, some policy implications are offered. Summarizing the reasons for China's trade volume and trade embodied carbon surplus status in terms of embodied carbon coefficient, trade structure and the decomposition results of driving factors. (take the "Electricity, Gas and Water Supply" as an example). Image 1 • China has a surplus of trade volume and embodied carbon emissions in Sino-German trade. • The CO 2 transfer is mainly concentrated in the carbon-intensive industrial sectors. • Germany's dependence on the carbon emissions embodied in Sino-German trade has increased. • The reduction of China's carbon emission coefficient was conducive to improve the "CO2 transfer" problem. [ABSTRACT FROM AUTHOR]

A pilot scheme for a carbon emissions trading market has been launched in China. Some problems within the market include insufficient incentives, inefficient emissions reduction, and inequitable distribution. While previous studies adopted a state or provincial level perspective to examine such issues, little research has focused on enterprises at a business level. This article proposes a new incentive model that aims to resolve these problems. This model was developed while considering the carbon emission intensity of enterprises and cooperative game theory. According to the advanced value and average value of carbon emission intensity, the model classifies enterprises into three regions. The quota in the second year is related to its own emission intensity and the number of enterprises located in the region, which not only stimulates the enthusiasm of the enterprise to reduce emissions, but also serves to encourage more enterprises to participate in emission reductions. This article presents a study of 16 textile enterprises in Shandong Province. Depending on the model's calculation, the quota can be redistributed. Different emission intensity brings different emission reduction costs, which can intuitively show different responsibilities. The result is fairer and more reasonable than distributions that are based on a historical emissions quota. • Adopts a carbon emission intensity perspective to classify enterprises. • Applies cooperative game theory to carbon trading. • Designs a cooperative mechanism that encourages more enterprises to take the initiative to reduce emissions. [ABSTRACT FROM AUTHOR]

Scholars and policy makers put great emphasis on analyzing the mitigation effect of an emissions trading scheme (ETS), while empirical researches on the mitigation effects of China's pilot ETSs are both thin and with significant limitations. This paper tries to analyze this issue from the perspective of industrial sub-sectors at the provincial level. We first calculate the carbon emissions of 37 individual industrial sub-sectors in each of China's 26 provinces from 2005 to 2015, covering both direct and indirect emissions. Cautiously identifying the industrial sub-sectors covered by China's pilot ETSs, we explore the causal impact of China's pilot ETSs on reducing carbon emissions at the initial stage (2013–2015) and analyze the paths of achieved emission reductions, applying a difference-in-difference (DID) model and a combination of DID estimator and propensity score matching technique. Our results yield robust evidence that China's pilot ETSs have significantly promoted carbon emission reductions of the covered industrial sub-sectors, and this impact has presented an overall enhanced trend according to year-by-year analysis. The results also show that the pilot ETSs have failed to enable covered industrial sub-sectors to effectively cut carbon intensity and the impact on carbon intensity is not obvious in any of the first three years, and the carbon emission reductions have mainly been achieved through the decreased outputs of industrial sub-sectors. China's policy makers should tighten the free allowance allocation approaches in order to facilitate low-carbon technology innovations and reduce carbon intensity of industrial sectors. • We explore the causal impact of China's pilot ETS on reducing carbon emissions from the perspective of industrial sub-sectors at the provincial level. • China's pilot ETSs have significantly promoted carbon emission reductions of the covered industrial sub-sectors. • China's pilot ETSs have failed to cause covered industrial sub-sectors to effectively cut carbon intensity. • The carbon emission reductions have mainly been achieved through the decreased outputs of industrial sub-sectors. [ABSTRACT FROM AUTHOR]

Cap-and-trade is regarded as the most effective approach to control and reduce greenhouse gas emission. How to perform the reallocation in a fair way is very critical to control total amount of emissions and improve trade mechanism. It has been proved that data envelopment analysis (DEA) is an effective way for reallocation. The objective of the present paper is to develop a centralized DEA model to reallocate emission permits in the cap and trade system based on countries efficiencies. Presented model considers all decision making units (DMUs) together and improves whole efficiency of them by reducing total emission permit as undesirable outputs. Also, this model determines amount of emitted gases that can be reduced without reducing other outputs. To demonstrate the applicability of model, a case study is presented. Sensitivity analysis is carried out to investigate the impact of the some parameters on the results. [ABSTRACT FROM AUTHOR]

Market-based mechanisms, especially emission trading schemes, are proposed as a means to control system-wide aviation emissions. Although auctioning has gained some recent popularity, free allocation of emission allowances is still favored by many to incentivize airlines' participation in the outset of an emission trading program. However, current methods for free allocation – grandfathering method and benchmarking method – have their limitations, such as placing heavy workload on regulators and a lack of transparency and flexibility. To overcome some of the limitations, this paper proposes a multi-stakeholder dynamic optimization method from a system-of-systems perspective. The method delegates part of the regulators' responsibility to airlines, and grants airlines flexibility to plan, negotiate, and request for emission allowances. The inclusion of the regulators' allowance allocation decision-making and airlines' fleet allocation decision-making ensures a holistic understanding of the problem. Specifically, the method combines transfer contract coordination mechanism and approximate dynamic programming to coordinate the allowance consumption between the participants. We apply the method to a ten-route air transportation network where two representative airlines compete for the allowances. The results demonstrate that the total network-wise profit from each airline's independent decisions can approach the globally efficient solution in an ideal centralized case without violating the emission constraint. • This paper considers the emission trading system design as a system-of-systems problem. • This paper proposes a multi-stakeholder dynamic optimization method for free emission allowances allocation. • The proposed method aims to reduce workload of the regulators and bring transparency and flexibility to the airlines. • Results confirm that total profit from each airline's independent decisions approaches a globally efficient solution. [ABSTRACT FROM AUTHOR]

The objective of the traditional dispatching optimization model is to find the most economical scheduling mode, while ignoring the efficient use of renewable energy. To properly arrange thermal power generation and renewable energy power generation, this paper constructs an optimization model of the combined wind–photovoltaic (PV)–thermal dispatching system under a carbon emissions trading (CET) mechanism. The contribution of this paper is twofold. First, a dispatching optimization model is proposed, which not only considers the total cost but also takes into account the impact of the renewable energy spillage rate on the dispatching system. As a factor affecting renewable energy consumption, a carbon emissions trading mechanism has also been introduced into the dispatching system. The second contribution is to develop a model for predicting the output of renewable energy generation. Then, the optimization model is applied to the auxiliary power dispatching system of the Tianzhong ±800 kV UHV DC transmission channel in Xinjiang. The results indicate that under a carbon emissions trading mechanism, thermal power generation will be limited by the carbon emissions cost, thereby reducing the total cost of the system. Optimizing the spillage rate increases the share of renewable energy in the dispatching system, resulting in a 3.5% reduction in the actual spillage rate. The proposed model alleviates the serious problem of electricity being abandoned in the existing scheduling mode and helps to realize economical low-carbon dispatching of the power system. [ABSTRACT FROM AUTHOR]

We investigate the bidirectional interactions between trading behaviors and carbon prices in the first carbon market, i.e., European Union Emissions Trading Scheme (EU ETS). The trading behaviors of the emitting companies are classified into 'compliance trading' and 'non-compliance trading' based on their positions, and the behaviors of financial intermediaries are quantified according to the changes in their inventories. We use two AR-EGARCH models and an ARMA-GARCH model to assess the bidirectional interactions between trading behaviors and carbon prices, and three empirical findings are derived. First, since emitting companies can predict their actual demand of a complete phase, 'compliance trading' is not affected by the annual nominal compliance demand of allowances, while 'non-compliance trading' is influenced by financial intermediaries' inventories and 'compliance trading'. Second, the allowance prices do have asymmetry effects on the volatilities of emitting companies' trading behaviors. Third, 'compliance trading' and the inventories of the financial intermediaries explain the trend of carbon prices, while 'non-compliance trading' explains the volatility of carbon prices. The findings could provide valuable managerial implications for managing the carbon markets. Image 1 • Bidirectional interactions between trading behaviors and carbon prices are analyzed. • 'Compliance trading' is not influenced by the nominal compliance demand in a year. • 'Non-compliance trading' is influenced by intermediaries and 'compliance trading'. • The volatilities of trading behaviors can be explained by carbon prices. • Carbon pricing is explained by participants' trading behaviors. [ABSTRACT FROM AUTHOR]

This paper argues that attempts to transform Australia's urban environment into a sufficiently sustainable one has been misdirected. The 'green rating tool,' industry's adherence to relevant standards and governmental policies represent the primary means of effecting the sustainability transition. However, only high-profile commercial building owners seem interested in being green-rated; the actual end-users of buildings are far less committed (e.g. employees ensconced in commercial buildings and residential home occupiers). Through a systematic review of 103 journal articles published on the topic of end-users and sustainability transition, original findings are presented. The findings reveal that most residential end-users do not purchase green homes and without their 'buy-in,' sustainability transition across Australia will continue to fail. This paper offers a critical analysis of the status-quo, identifying where the effort to generate a sustainable urban environment has been misdirected, what challenges prevail, and why residential end-users have been overlooked. In looking for a way forward that engages end-users, the paper proposes that financial incentives for the purchase of low-carbon buildings must be introduced into the residential real-estate market. And the modeling for this rebate is discussed in terms of emissions trading schemes or carbon tax. • Attempts to transform Australia's urban environment into a sufficiently sustainable one have not generated desirable outcomes. • A systematic review of 103 journal articles is conducted on the topic of end-users and sustainability transition. • Residential end-users do not purchase green homes and without their 'buy[HYPHEN]in,' sustainability transition will fail. • Financial incentives for the purchase of low-carbon buildings must be introduced into the residential real-estate market. • The modeling for the rebate is discussed in terms of emissions trading schemes or carbon tax. [ABSTRACT FROM AUTHOR]

Carbon market is a valid measure for promoting green and low-carbon development, and price is the core of market mechanism. In this work, combining directed limited penetrable visibility graph and coarse graining method, a new method is proposed to identify the potential periods and dynamic evolution characteristics of carbon price, which opens up a new perspective for government and investors to understand evolution characteristics and prevent risks. At the same time, a empirical analysis is conducted based on EU ETS daily price from September 29, 2009 to September 29, 2017, and the dynamic fluctuation characteristics of carbon price from high price period to low price period are obtained. [ABSTRACT FROM AUTHOR]

Abstract Following the international commitment to tackle climate change issues, many countries have introduced climate change policies to reduce emission levels. Australia also expects to follow the international pathways to implement a climate change policy to curb its greenhouse gas emissions. In this context, the former Labor Government in Australia intended to switch its carbon tax policy to an emissions trading scheme (ETS) after 2 years of its initial operation to achieve an emission target of 5 per cent below the 2000 level by 2020. By employing a computable general equilibrium model and a social accounting matrix database, this article analyses the potential impacts of an ETS with various revenue recycling options on Australian households. Results show that an emission permit price of A$20 per tonne of CO2-e would help Australia to achieve the 2020 emission reduction target. This permit price is likely to have a small contraction in Australia's real GDP (i.e. about 0.3 per cent) and in real household consumption (i.e. about 0.19 per cent). The price of electricity is projected to increase by 13 per cent. The revenue recycling options seem to create an improvement in the macro-economy and there is a trade-off between economic efficiency and equity in the Australian economy with compensations. The personal income tax reduction policy results in an economic efficiency with a positive change in real aggregate household consumption whereas providing an equal lump-sum transfer brings benefits equally for all household groups. Increased government transfers based on recipients' current pension and allowance rates generate more welfare gains for middle-income household groups. Highlights • A CGE model for Australia is developed and applied to analyse the impact of a domestic emissions trading scheme (ETS). • The modelling results show that an emissions permit price of A$20 per tonne of CO 2 -e to achieve the emissions target. • CO 2 -e to achieve the emissions reduction target. • Three revenue recycling options are examined to improve the efficiency and equity. • Increased government payments generate more welfare gain for middle income household groups. [ABSTRACT FROM AUTHOR]

Abstract This study utilizes the data envelopment analysis technique with materials balance condition to evaluate the inherent trade-offs between environmental and cost outcomes among different types of energy consumptions in China's construction industry. Environmental and cost efficiency that is decomposed into technical efficiency and allocative efficiency are estimated, and the possible environmental impact and economic cost of reallocating energy inputs for improving efficiency are obtained. The estimation results show that: i) China's construction industry has the ability to produce its current level of industrial added value with fewer CO 2 emissions and fewer energy input cost through removing technical inefficiency and adjusting energy consumption structure. ii) There are 31.9% and 6.1% reduction potentials on CO 2 emissions if this industry attained the most environmentally efficient and the most costly efficient situation, respectively. iii) The average shadow cost of CO 2 emissions reduction in this industry is very low, suggesting that it should control CO 2 emissions through optimizing energy consumption structure and improving energy efficiency, instead of relying on end-of-pipe emission abatement technologies or emission trading systems. [ABSTRACT FROM AUTHOR]

Abstract Understanding carbon emissions embodied in trade is an important prerequisite for the effective formulation of climate mitigation policies. Based on input–output analysis and panel regression models, this study proposes a multi-step forecasting procedure to simulate carbon emissions embodied in bilateral trade. We calculate carbon emissions embodied in the trade between China and Australia during 2000–2014 and forecast the same for the period 2015–2022 under four different development scenarios. The results show that, during 2000–2014, net carbon outflow from China to Australia increased from 2.2 to 15.5 Mt CO 2 , concentrated in textile and heavy manufacturing sectors. The simulation results show that, the forecasts of "R&D focus" and "GDP focus" scenarios constitute the lower and upper bounds of embodied emissions, and the latter is more than two times of the former in 2022 both for embodied emissions in Australia's exports and China's exports. Finally, conclusions are drawn and policy implications are discussed. Highlights • A multi-step forecasting procedure of carbon emissions embodied in trade is proposed. • Carbon emissions embodied in China–Australia trade during 2000–2014 are analyzed. • A scenario analysis is conducted for emissions embodied in China–Australia trade. [ABSTRACT FROM AUTHOR]

Abstract To reduce CO 2 emissions, the Chinese government has established a carbon emissions trading scheme, with industrial enterprises being allocated free emissions quotas and buying permits on the carbon market for over-quota emissions. Enterprises, including container terminals, must also progressively reduce their carbon emissions intensities and will be affected by the costs associated with reducing emissions as well as by carbon trading expenses. Therefore, in this study, the costs of carbon reduction (e.g., equipment changes, management interventions, and carbon trading) are calculated, and a nonlinear programming model is developed to formulate an optimal strategy of measures for a terminal enterprise to meet its statutory emissions-reduction target while minimizing the associated expenditure. In addition, the specific effect of carbon trading (using the free emissions quota percentage or FEQP and the carbon trading price or CTP) on a terminal's optimal emissions-reduction strategy is examined. Using the case of Nansha terminal over a five-year period, the model results show that under the current FEQP and CTP, the carbon trading expenses constitute only 0.1% of the total expenditure on carbon-reduction measures. Therefore, the current values of the FEQP and CTP provide very little incentive for terminals to reduce emissions. Sensitivity analysis shows that under a decreasing FEQP, the terminal's expenses increase linearly but the emissions amount decreases stepwise. An increase in the CTP from 40 to 190 Yuan/t increases the terminal's expenses linearly and decreases its emissions stepwise, but emissions show no further decrease for a CTP of 190–370 Yuan/t. The findings have implications for policy-making as well as for terminals' carbon-reduction strategies and costs. Highlights • Develop a model for the optimal carbon-reduction strategy for container terminals. • Model analyzes effect of China's emissions trading scheme (ETS) on enterprise costs. • China's ETS gives insufficient incentive for enterprises to reduce carbon emissions. • Study effect of free emissions quota percentage (FEQP) and carbon trading price (CTP). • China's ETS should be divided into stages based on identified values of FEQP and CTP. [ABSTRACT FROM AUTHOR]

Abstract Reducing emissions to improve air quality is the cornerstone of China's current environmental protection efforts. Emissions trading as a market measure is internationally acceptable because of its cost-effectiveness. Traditional emissions trading research has usually ignored the effect of exchange rates and has adopted top-down methods to analyze how transactions proceed. These transactions may lead to environmental quality deterioration and cannot clearly reflect the transaction processes. Based on these two points, an agent-based model was used to study three regions' SO 2 emissions trading processes in China, and the cost-effectiveness was analyzed by the three policy scenarios of E missions T rading with the E xchange rate (ETE), E missions T rading without the exchange rate (ET), and C ommand and C ontrol regulations (C&C). The results show that the ETE system was more cost-effective than the ET and C&C systems. The average total SO 2 emissions of all three scenarios satisfied the cap's requirement, but the average SO 2 abatement cost in the ETE system can save 0.76 and 25.04 CNY/ton compared with the ET and C&C systems, respectively. Additionally, the ET system may lead to the "hot spots" issue, which means that during the process of emissions trading, the pollutant transaction may focus on some fixed regions (or firms) and cause their emissions to be higher. The ETE system can effectively avoid the problem of "hot spots" to a certain extent. Thus, it is suggested that the exchange rate should be considered in the future trading policy designs of China's pilot programs. [ABSTRACT FROM AUTHOR]

Abstract Several climate change policies, such as emissions trading schemes and carbon taxes, have been implemented in many countries and regions around the world. However, the current Coalition Government in Australia does not prefer such methods and has argued that these policies would substantially increase the electricity price, and weaken the Australian competitiveness and the whole economy. Subsequently, the Government replaced the carbon tax policy in July 2014 with its Emissions Reduction Fund, which fundamentally uses the government budget of A$2.55 billion to buy emission abatements from polluters. There are major arguments among the Australian public about the efficiency and the effects of this approach, but the economic effects are still unidentified. This study aims to examine the economy-wide effects of this policy on the Australian economy by employing a national environmental and economic general equilibrium model so that Australians and international audience would be aware of the impacts and how the reverse auction and carbon subsidy work as a policy to reduce emissions at large scales across all sectors in a country. Results show that Australia only experiences relatively small impact on its economy. Real GDP only declines by 0.3%–0.4% over all scenarios. Industrial and private sectors also experience relatively small unfavourable impacts, but the output and export level of the agricultural commodity will decline substantially. The renewable sectors are expanded to compensate output reductions in fossil fuel electricity generation sectors, though the expansion is insufficient to compensate for the losses. Highlights • This study examines the impacts of the Emissions Reduction Fund in Australia. • A detailed electricity computable general equilibrium model is developed. • Abatement sectors are assumed to use the funding for improving efficiency. • The Australia only experiences a mild contraction in the economy. • Renewable electricity sectors are expanded but at relatively small rates. [ABSTRACT FROM AUTHOR]

Abstract The Chinese Certified Emission Reduction (CCER) program registers and trades CCER credits compatible with the Clean Development Mechanism (CDM) endorsed by many other countries. This example of an Emissions Trading Scheme (ETS) has become a driving force for the regional expansion of the biogas economy in Hubei, China. Hubei is a notable case that demonstrates how China has begun to decentralize its policy approach to rural green-energy production. Hubei's rural energy agencies have taken a "learning-by-doing" approach to implementing projects under programs including CCER, which have provided both financial and technical support for implementing biogas solutions. This paper illustrates the potential of CDM tools to support the expansion of subnational biogas economies and highlights a pathway for international engagement in local projects that can provide funding, as well as the technological and human resources required for success. Highlights •.• It presents a case study with comprehensive analyses of Hubei's biogas expansion lessons. •.• It describes the significance of both CDM and CCER development in supporting biogas. •.• We address key barriers, including funding and technology risk, to biogas uptake. •.• We suggest that integrating local needs within global ETS initiatives can advance biogas [ABSTRACT FROM AUTHOR]

Abstract This study examined appropriate design of efficient climate taxes on consumption of food by constructing a simple theoretical model and exemplifying the results using the examples of tomatoes and beef in Sweden. The theoretical results showed that, for the tax to be efficient, i) existing taxes on greenhouse gases (GHGs) should be considered when calculating the climate impact in order to avoid double taxation, and ii) taxes should be differentiated between GHG (here carbon dioxide (CO 2) methane (CH 4) and nitrous oxide (N 2 O)) because of their differing climate impacts. The calculations of climate taxes on tomatoes and beef in Sweden indicated considerable differences in the tax level depending on whether conditions (i) and (ii) were considered or not. The commonly applied approach in the literature on climate taxes on food, i.e. taxing carbon dioxide equivalents (CO 2 e) using global warming potential over 100 years (GWP 100) and neglecting existing taxes on GHG emissions, results in a tax that is 1.4–2.8 times higher than the efficient tax for tomatoes and a tax that is between 30% lower and 20% higher than the efficient tax for beef. Despite the relatively low variations in the climate tax on beef, estimated reduction in emissions from beef ranged between 23% and 35% depending on choice of tax. The price increases on food due to a climate tax and associated effects on emissions can thus show large variation depending on the tax calculation method. [ABSTRACT FROM AUTHOR]

Abstract Energy intensive enterprises (EIEs) need to coordinate the production scheduling with carbon emission in consideration of the carbon market. In this paper, a mixed integer linear programming (MILP) based self-generation (SG) and load scheduling model with consideration of carbon emission permits and time-of-use (TOU) electricity tariffs is proposed to obtain optimal economical and ecological benefits, in which both the electricity cost and the carbon trading cost (CTC) are included in the optimization objective of the model. CPLEX is used to solve the model. Experimental results and analyses show that the proposed integrated model is effective in cutting down total system costs (TSC) and reducing carbon emission, besides that, with less carbon emission in future power grid, the proposed model appears to be better for making economical and ecological benefits. [ABSTRACT FROM AUTHOR]

Abstract Ecological performance of an energy supply chain (ESC) is an important yet understudied field, which differs from the traditional manufacturing supply chain. This research proposes a novel two-stage data envelopment analysis (DEA) model that employs frontier-shift methodology to measure ESC ecological efficiency when carbon permits are tradable. The proposed frontier-shift DEA (FSDEA) approach uses the carbon trading quantitative information to determine to whom the trade should be made and how much to trade. In addition to estimating ESC efficiency performance, this research also stipulates the efforts required for a particular decision-making units (DMU) to become efficient and discuss the benefits that derived from the proposed exchange. It also reveals why certain DMUs are more likely involved in trading than others. Under the two-stage ESC, this research shows that either stage can improve the overall efficiency, which can be optimally derived if and only if both stages obtain the optimal solutions. In an application study of cities in one of the Chinese provinces, the proposed FSDEA model compares each city's potential percentage efficiency improvement with minimal possible efforts (carbon reduction), which differs from existing DEA models that rank solely by efficiency scores. Results show that on average the amount of carbon credits a city should trade to its competitors is 392.21 tons, resulting in a 6.61% improvement in efficiency. Among cities, Xuancheng and Fuyang is ranked in the first and the last place, respectively, according to their effectiveness in potential efficiency improvement with possible reduction efforts. Our findings offer valuable insights into ESC efficiency and help businesses make advantageous ecological decisions. Highlights • A two-stage frontier-shift DEA model is proposed. • The model is used to measure energy supply chains' ecological performances. • The model considers that carbon permits are tradable. • The ecological efficiency of 16 cities in Anhui, China are examined. [ABSTRACT FROM AUTHOR]

Abstract: In practice, carbon tax is an effective supplement to emissions trading system, and is also a key to achieving China's emission reduction targets. Although much research has been done to study the internal mechanism and macro impact of carbon tax, prior literature paid little attention on whether carbon tax affect the strategy and performance of low-carbon technology sharing among enterprise. A differential game model is developed in this paper, which assumed that enterprise low-carbon technology stock is jointly determined by both the efforts of the enterprise low-carbon technology innovation and the external enterprise low-carbon technology sharing. This paper constructs dynamic models under decentralized decision-making with cost-sharing, without cost-sharing, and centralized decision-making respectively, obtain enterprise optimal feedback equilibrium strategies, low-carbon technology stocks and the trajectory of optimal value function of benefits. The results demonstrate that carbon tax can promote enterprise low-carbon technology innovation and sharing to some extent. Meanwhile, this paper found that under the scenario of centralized decision-making, the more the efforts of enterprise low-carbon technology innovation or sharing, the higher the system emission reduction benefits than non-cooperation scenarios. Some factors, such as cost coefficient, cost sharing ratio, etc., will affect the enterprise's decision-making and emission reduction benefits. Finally, the validity of the model is verified through numerical simulation and the sensitivity of the relevant parameters in the scenario of cooperative innovation are analyzed. The results may provide important policy implications for promoting low-carbon technology sharing among enterprises, so as to faciliate the achievement of China's emission reduction targets. Highlights • We explore the effects of carbon tax on effort level on LCT innovation and sharing of enterprise. • We analysis the enterprise LCT stocks and the trajectory of optimal value function of benefits, under different scenarios. • Some relevant parameters of enterprise LCT stocks and reduction benefits under the centralized decision-making are discussed. [ABSTRACT FROM AUTHOR]

Abstract Human activities cause massive CO 2 emission, and the Emission Trading Scheme (ETS) is currently one of the most effective methods of emission reduction. Few studies focus on the impact of different transfer payments in ETS on rural and urban population. This paper establishes a dynamic recursive Computable General Equilibrium (CGE) model and constructs 3 counter-measure scenarios (i.e. payment methods based on income, direct tax and population, respectively), following China's pilot ETS pattern, to analyze and provide insights on the best option for the government to transfer ETS revenues to rural and urban population. The results show that commodity consumption, energy consumption, direct tax, and social welfare will be significantly impacted by ETS transfer payments, while commodity price and household savings will be less affected. For rural population, more transfer payments will lead to an increase in consumption levels in the ETS transfer payments scenario based on population, despite the rise in commodity prices. Moreover, the payments based on population can also reduce by 15.09 billion tons of CO 2 emission during 2017–2030. Therefore, this paper suggests that the ETS transfer payments method should be based on population. Highlights • A dynamic recursive computable general equilibrium model is established. • Fossil energy consumption of households is strongly influenced by transfer payments. • Population-based ETS transfer payments should be adopted. • Consumption elasticity of rural residents is larger than that of urban residents. [ABSTRACT FROM AUTHOR]

Abstract The objective of traditional fleet optimization models has been to find the economic life of the assets, neglecting their environmental impacts. However, due to the effect of carbon pricing schemes, in addition to the international concerns about global warming and carbon emissions, it is essential for affected fleet owners to incorporate environmental burdens into their asset management systems. The contribution of this paper is twofold. First, a fleet optimization model is proposed, which factors in the environmental impacts of a fleet of assets over a finite horizon, in addition to its total cost of ownership. As an indicator of environmental impacts, the greenhouse gas (GHG) emissions associated with the fleet ownership is considered. GHG emissions are converted into a monetary value, using the expected price of carbon in the Western Climate Initiative (WCI) market. Thus, the second contribution of this study is to develop a model to predict the price of carbon in this market. The optimization model is then applied to a fleet of excavators located in Ontario, Canada, and the price of carbon in the WCI market is forecasted over the planning horizon of the optimization model. [ABSTRACT FROM AUTHOR]

Abstract This paper investigates the issue of remanufacturing in a dual-channel supply chain. The manufacturer can produce/remanufacture the products and sell them at the same price through his own direct channel or a retail channel. Based on the cap-and-trade regulation, we construct two models with and without remanufacturing to obtain the optimal levels of carbon emission reduction and pricing strategies. The results indicate that remanufacturing can effectively improve the level of carbon emission reduction, and it is profitable to the manufacturer and the retailer. Furthermore, with remanufacturing, we investigate the effect of product promotion where the manufacturer can promote via direct channel (manufacturer's promotion), and the retailer can promote via retail channel (retailer's promotion). With the manufacturer's promotion, the results show that both the level of carbon emission reduction and profit of the manufacturer increase, but the retailer's profit decreases. On the other hand, the retailer's promotion can improve the profits of the retailer and the manufacturer when more consumers prefer the retail channel. Finally, we provide more managerial insights in the sensitivity analysis and extension parts. [ABSTRACT FROM AUTHOR]