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This study incorporates fairness concern in a low-carbon supply chain coordination mechanism where a single manufacturer sells its product to consumers through a single retailer. We develop four different scenarios of the Stackelberg master-slave game utility model—both members are neutral (NN), the manufacturer (FN) or retailer (NF) has fairness concern, and both are not neutral (FF), where the Nash bargaining fairness reference is leveraged to capture the impact of fairness preference on low-carbon supply chain optimisation decision-making profits, level of carbon emission reduction, warranty period, and revenue-sharing. Finally, numerical studies are conducted to quantify the impact of the Nash bargaining fairness concern. Research shows that: (1) fairness concern made it worse for the retailer but beneficial for the manufacturer and the system. (2) fairness concern causes a reduction in the level of carbon emission reduction and warranty period. However, the reduction of carbon emission reduction trading price and a certain range of revenue sharing effectively reduces the impact of fairness concern on members. (3) The revenue-sharing contract effectively reduces the negative impacts of fairness concern on supply chain members. The paper is a guide for enterprises development and cooperation but also provides empirical evidence for the government. [ABSTRACT FROM AUTHOR]

We estimate the effect of carbon pricing policy on bank credit to greenhouse-gas-emitting firms. Our analyses exploit the geographic restrictions inherent in California's cap-and-trade bill and a discontinuity in the embedded free permit threshold of the federal Waxman-Markey cap-and-trade bill. Affected high emission firms face shorter loan maturities, lower access to permanent forms of bank financing, higher interest rates, and higher participation of shadow banks in their lending syndicates. These effects are concentrated among private firms, while credit terms of public firms are largely unaffected. Overall, we show that banks respond quickly to realizations of transition risk. [ABSTRACT FROM AUTHOR]

Strengthening carbon regulations and competitive pressures are forcing supply chains to provide environmental (e-) products to replace traditional (t-) products. However, cap-and-trade policy allows manufacturers, the main carbon emission emitters, to trade their emission permits freely. Considering manufacturers' power and key role in producing and carbon trading, we develop a duopoly model consisting of two competing manufacturers. Despite asymmetrical carbon emission reduction efficiencies, the two manufacturers can independently and simultaneously decide their respective t-/e-products outputs, emission reduction levels, and permits trade quotas. The unique Nash equilibrium is derived with the overall cap. We find that the low-cost manufacturer uses its cost advantage to invest more in emission reduction, then sells the excess emission permits to its rival, but makes its rival more competitive in product market. Interestingly, our results show that cap-and-trade policy triggers an industry collusion in which manufacturers reduce competition and improve the power and profits by reducing overall output and adopting differentiated product strategy. Furthermore, the cost advantage and high product substitution can accelerate low-cost manufacturer's transformation but hinder high-cost manufacturers. The impacts of cap-and-trade policy on consumer surplus and social welfare are also discussed to provide guidance for policy makers. [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]

This paper presents the development of a model incorporating two manufacturers in a competitive carbon emissions trading market with varying degrees of market competitiveness. Among them, the manufacturer is in a limited market leadership position, and the game process lies between the Stackelberg game and the Cournot game. Additionally, the Pareto solution sets at various model periods are investigated. In addition, the model examined the effect of dynamic government adjustments on carbon emission limitations. The paper conducts an analysis of the fundamental factors contributing to system instability and evaluates the influence of various factors on the model's stability. At the same time, we also discussed the influence of government adjustment strategy on retail decision‐making and stability. The results highlight that the instability of the system is mainly caused by the adjustment strategy of the market leader, whereby the system becomes increasingly unstable as the market leader's position becomes stronger. In addition, the government's implementation of carbon emission limits will promote market stability. [ABSTRACT FROM AUTHOR]

In this paper, we propose a novel approach to study the production of consumption goods within a price floor carbon emission trading scheme. A stochastic Stackelberg game is set up between the environment authority (Player 1), and the manufacturer/producer (Player 2). In such a hybrid emission trading scheme, the authority sets an emissions target and producers will choose to participate in carbon trading on this basis, subject to a stochastic demand with information delayed. When the stochastic demand is determined by the market sale price and the scale of carbon emission reduction, we apply the maximum principle to obtain both the optimal production and market price. We show when the demand is determined by both the market sales price and carbon emission reduction, manufacturers are persuaded to set the market sales price first (ex ante incentive) and then proceed to a carbon trading scheme, thus providing a backward-looking advantage to manufacturers. Consequently, the manufacturer and the environmental authority can find a subgame-perfect Nash equilibrium via backward induction. [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]

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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]

Under the background of "carbon peak and carbon neutrality", the interconnection of multiple regional integrated energy systems has become an important way to coordinate multiple energy sources and save energy and reduce emissions. This paper proposes a low-carbon economic dispatch model for multi-regional integrated energy systems considering the joint demand response mechanism; first, the concept and model of joint demand response are proposed, and on this basis, the energy conversion model between multiple energy forms in the multi-regional integrated energy system is studied; secondly, green certificate trading and carbon trading mechanisms are introduced, and green certificate trading and carbon trading are combined through the green certificate emission reduction mechanism; finally, a low-carbon economic dispatch model is proposed with the goal of minimizing the sum of system energy purchase cost, green certificate trading cost, carbon trading cost and joint demand response compensation cost. The example results show that the introduction of joint demand response mechanism and green certificatecarbon trading mechanism in the multi-regional integrated energy system reduces the total system cost and carbon emissions by 14.03% and 26.04% respectively. [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]

In response to the international appeal of developing low-carbon economy and realizing carbon peaking and neutrality goals, China has been exploring the construction of the carbon emissions trading market for years. Without the guidance of advanced technology, there would not be a low-carbon economy in the first place. Based on panel data of 30 provinces and cities in China from 2005 to 2020, this paper takes Beijing—which is the first pilot city in China—as the only treated group and uses the Synthetic Control Method to study the impact of the pilot policy on low-carbon technology innovation. The results show that, firstly, the number of low-carbon technology patents in Beijing increases significantly after the implementation of the pilot policy, proving a positive influence on technology innovation. Secondly, the policy effect has a certain time lag and is sensitive to the shock from both domestic and foreign carbon market, but this effect is gradually stable over time. This paper confirms that technological innovation is the key means of promoting the development of the low-carbon economy and calls on various carbon trading markets to pay attention to the internal mechanism of promoting low-carbon technology innovation to stimulate the vitality of market entities. [ABSTRACT FROM AUTHOR]

Renewable energy innovations are imperative to tackle the climate change crisis. However, there is a gap in the literature regarding the effectiveness of environmental policies in promoting renewable energy innovations. To bridge this gap, we have adopted a systematic literature review process covering the period from 2005 to 2023. We identified and analysed 29 articles in our final sample. Further, we employ two levels of analysis (individual‐policy and policy‐mix levels) for analysing the extant research. Our findings show that fiscal incentives and emissions trading policies such as the European Union (EU) Emissions Trading System (ETS) consistently promote renewable energy innovations. In contrast, the effectiveness of feed‐in tariffs and quotas in supporting renewable energy innovations varies, reflecting diverse impacts across distinct regions and renewable energy technologies. Our analysis also suggests that combinations of various policy types can enhance innovation more effectively than individual policies. We contribute to the extant literature by developing a classificatory analysis of the effect of environmental policies on renewable energy innovations. Our review also provides research directions for future scholarship. [ABSTRACT FROM AUTHOR]

With the German Energy Efficiency Act, politicians are intervening directly in business activities by imposing energy-saving requirements. The act sets precise targets for future energy consumption in Germany as a whole and obliges companies above a certain energy consumption level to set up energy management systems or to draw up implementation plans for energy-saving measures identified as economically viable. Government bodies have an annual obligation to save energy; this is unnecessary, as the relevant signals for energy savings result from EU emissions trading. It is also dysfunctional, as it undermines entrepreneurial freedom of action and leads to a de facto planned climate economy. [ABSTRACT FROM AUTHOR]

The article analyses the Renewable Energy Sources Act (EEG) and the climate protection agreements, focusing on three aspects: Firstly, very high costs of CO2 avoidance that have to be paid over decades and limit the room for manoeuvre of future parliaments. Secondly, the promotion of technical progress in climate protection – possibly beyond the effect of permanently rising CO2 prices. Thirdly, lower CO2 emissions in Germany, which do not lead to lower global emissions through the EU-ETS. Overall, it is highly questionable whether Germany can play a leading international role in climate protection through the EEG and climate protection agreements. [ABSTRACT FROM AUTHOR]

The augmentation of transactional volume within carbon emissions trading systems (ETS) is widely acknowledged as an efficacious mechanism for ensuring the efficient distribution of resources and financial support to corporations, significantly influencing their financing limitations. Despite its relevance, this subject has garnered scant attention in scholarly discourse. This research utilizes a panel dataset comprising Chinese listed firms from 2009 to 2019, applying the difference-in-differences approach to examine the correlation between the magnitude of carbon emissions trading in regional ETS pilots and the evolution of financial constraints. Our analysis reveals that a 1% escalation in carbon transaction volume correlates with a 0.1885% reduction in the financial constraints encountered by companies. This phenomenon is particularly salient among smaller enterprises in the eastern provinces and second-tier urban centers, and those engaged in the primary and secondary sectors. Moreover, our principal results demonstrate resilience across various sensitivity analyses, encompassing common trend scrutiny and alternative methodologies like propensity score matching estimation. The research further delves into the underlying mechanisms by which carbon trading can mitigate a firm's fiscal pressures. Our examination identifies investment in intangible assets, improved carbon performance, and liquidity enhancement as key conduits. These findings carry substantial policy implications, advocating for governmental initiatives to bolster corporate engagement in ETS, thereby easing financial burdens while concurrently advancing environmental regulation and low-carbon transformation objectives. [ABSTRACT FROM AUTHOR]

Increasing strict carbon regulations enforced by regulators are encouraging companies to seek better ways to manage inventories with a desire to reduce carbon emissions from their operations. This work illustrates an inventory model to obtain the retailer's optimal replenishment policy for non-instantaneous deteriorating items with fixed lifetime and partial backordering under cap-and-price, cap-and-trade, and carbon tax regulations with the goal of maximizing a retailer's profit while simultaneously reducing total carbon emissions. To investigate the work from a more general perspective, the market demand structure of perishable products is considered deterministic in nature and is reliant on both the selling price and stock level, while the shortage of items is a decreasing function of waiting time up to the next replenishment. This study examines, for the first time, the best replenishment decisions for non-instantaneous deteriorating items with an expiration date after characterizing their properties theoretically under carbon regulations. Integrating all possible cases of the optimal solutions from theoretical outcomes, different numerical examples are demonstrated, and finally, several management insights are provided by investigating the changing pattern of the optimal strategies for variation in the system parameters. The derived outcomes highlight that the cap-and-price policy performs well both economically and environmentally for the inventory decision-maker when the penalty is less than or equal to the reward for each unit of carbon emission. Furthermore, in cap-and-price regulation, the total profit is increased by 3.14 % , 8.10 % , and 1.63 % from cap-and-trade, carbon tax, and without carbon regulation, respectively, and the total amount of emission is decreased by 5.38% from cap-and-trade and carbon tax regulation. [ABSTRACT FROM AUTHOR]

The interactive behaviors, such as competition and learning between local and neighboring cities, can lead to spatial spillover effects in policy implementation. Estimating the direct, indirect, and total effects of the carbon emission trading scheme (CETS) on green innovation is crucial to clarify its role and mechanisms. This paper applies the spatial difference-in-differences model to estimate these effects using data from 278 cities in China from 2009 to 2019. The results demonstrate that the CETS implementation catalyzes green innovation in pilot cities, which supports the Porter hypothesis. However, it has a negative impact on green innovation in neighboring cities of pilot cities, with this negative impact diminishing as distance increases. Notably, the total effect of the CETS is significantly negative, indicating that the CETS's average impact on green innovation in all cities is negative. Mechanism analysis reveals that the direct and indirect effects of the CETS on green innovation are strengthened in cities with higher levels of financial development, lower financial pressure, and easier economic growth targets. Notably, in cities with high-level industrial structures, the CETS not only enhances its contribution to green innovation but also mitigates its negative impact on neighboring cities. Furthermore, this paper explores the heterogeneous effects of the CETS from the perspective of its implementation measures. [ABSTRACT FROM AUTHOR]

We establish a general-equilibrium model to compare the efficiency of two emission regulation policies used worldwide: the carbon tax (CT) and the emission trading scheme (ETS). Assuming monopolistic competition and heterogeneous firms, we show that the ETS is better in an economy with a high degree of heterogeneity, and the CT is better otherwise. We also explore how the market distortions under these two regulation policies are different. Moreover, we find that the excessive input of an immobile resource in manufacturing production may result in market inefficiency. [ABSTRACT FROM AUTHOR]

While countries increasingly commit to pricing greenhouse gases directly through carbon taxes or emissions trading systems, indirect forms of carbon pricing—such as fuel excise taxes and fuel subsidy reforms—remain important factors affecting the mitigation incentives in an economy. Taken together, how can policy makers think about the overall price signal for carbon emissions and the incentive it creates? We develop a methodology for calculating a total carbon price applied to carbon emissions in a sector, a fuel, or the whole economy. We recognize that rarely is a single carbon price applied across an economy; many direct carbon pricing instruments target specific sectors or even fuels, much like indirect taxes on fossil fuels; and carbon and fuel taxes can be substituted for one another. Tracking progress on carbon pricing thus requires following both kinds of price interventions, their coverage, and specific exemptions. This inclusive total carbon pricing measure can facilitate progress in discussions on minimum carbon price commitments and inform assessments of the pricing of carbon embodied in traded goods. Calculations across 142 countries from 1991 to 2021 indicate that although direct carbon pricing now covers roughly one-quarter of global emissions, the global total carbon price is not that much higher than it was in 1994 when the United Nations Framework Convention on Climate Change entered into force. Indirect carbon pricing still comprises the lion's share of the global total carbon price, and it has stagnated. Taking these policy measures into account reveals that many developing countries—particularly net fuel importers—contribute substantially to global carbon pricing. Tackling fuel subsidy reform and pricing coal and natural gas emissions more fully would have a profound effect on aligning carbon prices across countries and sectors and with their climate costs. [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]

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 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]

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]

Facing the dual pressures of the exacerbation of global climate change and the deterioration of the domestic environment caused by pollution, China has clearly adopted environmental regulatory measures to improve the climate environment. One measure is the carbon emissions trading scheme (CETS), which serves as a notable example of the country's efforts to improve the climate environment. We gathered panel data from 285 prefecture‐level cities in China from 2005 to 2018 and used the Difference‐in‐Differences (DID) model to empirically examine the synergistic effects of the CETS on carbon emissions and air pollution. The results indicate that CETS have been effective in reducing urban carbon emissions by approximately 9.8%. Additionally, the schemes have caused a simultaneous reduction in particulate matter (PM)2.5 emissions by 11.7% and sulfur dioxide (SO2) emissions by approximately 9.7%, mitigating urban air pollution in China. It demonstrates that the scheme has significant synergistic effects on carbon emissions and air pollution. To achieve synergistic effects of CETS, effective measures include reducing energy intensity and upgrading the industrial structure. The implementation of CETS had heterogeneity in different conditions, and the synergistic effect of the scheme is more significant in eastern regions, large cities, and the final industrial stage. Our findings offer innovative solutions for the integrated management of carbon emissions and air pollution and provide valuable insights for policymakers to enhance China's CETS. Integr Environ Assess Manag 2024;20:1112–1124. © 2023 SETAC Key Points: The carbon emissions trading scheme (CETS) led not only to the significant reduction by approximately 9.8% in carbon dioxide (CO2) emissions, but also effectively mitigated sulfur dioxide emissions by approximately 9.7% and particulate matter (PM)2.5 emissions by approximately 11.7%.This policy highlights the synergistic impact of reducing carbon emissions and air pollution.The effective emission reduction measures of CETS are focused on reducing energy intensity and upgrading industrial structure; the proper implementation of these measures can achieve significant synergistic emission reduction.Based on the heterogeneous analysis of the pilot scheme, the synergistic effects of the CETS are particularly significant in the eastern regions, large cities, and the final industrial stages. [ABSTRACT FROM AUTHOR]

We study how the implementation of emissions trading systems (ETSs) impacts emissions reductions and the usage of renewable energy using a panel sample of the largest 100 countries worldwide. Exploiting cross-country variations in ETS implementations, we show that ETS adoption materially reduced greenhouse gas (carbon dioxide) emissions by 12.1% (18.1%). Moreover, ETSs reduced overall emissions by cutting the usage of fossil fuels such as coal by 23.70% while boosting the usage of renewable energy by 61.59%, on average. In contrast, introducing carbon taxes has a less effective impact on emissions reduction. It fails to boost the usage of renewable energy, though elevating tax rates and expanding tax coverage may help enhance the efficacy of carbon taxes. This paper was accepted by Victoria Ivashina, finance. Funding: H. Ru thanks the financial support from the Nanyang Technological University, and Ministry of Education, Singapore, under its Tier 1 RG134/20. Supplemental Material: The online appendix and data files are available at https://doi.org/10.1287/mnsc.2023.03143. [ABSTRACT FROM AUTHOR]

The legal tools to avoid the potential disasters of climate change are already available, at least according to economists. Economists overwhelmingly prefer carbon pricing tools like carbon taxes and cap-and-trade programs to combat climate change and guide the energy transition. Carbon pricing is more cost effective at lowering carbon and other greenhouse gases (GHGs) than other legal options such as efficiency standards, renewable portfolio standards, subsidies, and tax credits and deductions. Unlike those other options, carbon pricing targets both the supply of and the demand for GHG-emittingproducts and services; moreover, it gives firms and consumers flexibility in how best to respond to the tax or the cap, whether by conserving more or switching to alternatives. For the most part, however, U.S. lawmakers have eschewed carbon pricing in favor of the less-effective and more-costly non-pricing alternatives. The preference is due in large part to concerns over the distributive implications of carbon pricing, namely that it would result in an unjust energy transition. Many scholars, policymakers, and environmental justice advocates worry that since carbon pricing by design raises energy prices, it will disproportionately burden the poor, who spend a greater share of their budget on energy. They also worry that carbon pricing will disproportionately benefit the rich, such as through capital tax su)aps or grandfathered emissions permits. Numerous recent economic studies have addressed the distributional implications ofpricing and non-pricing climate policy instruments, yet those studies haue received limited attention from legal scholars . Nor hat)e economists compared and contrasted the distribution of pricing with non-pricing policies. This Article therefore surveys those economic analyses to show that ajust transition is possible with carbon pricing. First, the United States currently relies on nonpricing policies that are themselves unjust: performance standards add costs that impose a disproportionate burden on the poor while subsidies and tax expenditures primarily benefit the rich. Carbon pricing can displace many of these laws and thereby eliminate their unjust impact. Second, the cost burden and regressivie of carbon pricing are overstated, so the impact on the poor will likely be much lower than commonly assumedand might even be progressive for the poorest households because of the indexing of government transfers. Third, the ways in which revenues raised from carbon pricing are recycled play an important role: lowering other distortionary taxes like those on capital while allocating some money for government transfer programs and lump-sum rebates to the poorest households can balance efficiency and equity. This Article therefore argues that concerns over a just transition should not be a barrier to implementing carbon pricing, which is the most efficient and effective means for lowering GHGs and thus avoiding the harms of climate change. [ABSTRACT FROM AUTHOR]

There is still considerable resistance against carbon pricing — i.e. carbon taxation or cap-and-trade — in the social and policy sciences. We review its main arguments and conclude that they are not supported by the theoretical and empirical literature on instrument performance. Critics are also unable to offer alternative and feasible instruments that limit free riding in climate solutions and perform better on main evaluation criteria, namely effectiveness, efficiency, equity, and global-harmonization potential. Their argument that carbon pricing meets strong political resistance is countered by its widespread implementation already and by its ability to compensate inequitable impacts. We argue that overcoming unsubstantiated criticism on carbon pricing will lead to more consistent advice from policy experts to politicians, thus improving the feasibility of, and accelerating progress towards, globally harmonized and stringent climate policy. All in all, it might be more widely acknowledged that the remarkable feature of carbon pricing is that, if well implemented, it has a great number of advantages and few disadvantages. Rather than weakening political support by criticizing carbon pricing, critics would contribute more productively to effective global climate policy by defending proper and uniform implementation of it. [ABSTRACT FROM AUTHOR]

Using an international sample of firms from 36 countries over the period 2002 to 2018, we investigate whether short sellers take firms' climate risk into consideration when making investment decisions. Our empirical results show that short sellers increase their short-selling interest in firms with high carbon emission intensity but shun good carbon performers. Furthermore, the effect of climate risk on short-selling interest is more pronounced for firms operating in countries or regions that have adopted an emission trading scheme (ETS) as well as in countries characterized by higher regulatory quality and greater media pressure. We also document that short sellers in countries with stringent carbon regulations, higher environmental awareness, and superior environmental performance are more sensitive to climate risk. Our channel analyses highlight that stock overvaluation and an opaque information environment are two potential motives for short-selling interest in carbon-risky firms. [ABSTRACT FROM AUTHOR]

This article examines a supply chain network that considers both economic and environmental factors. The network faces challenges related to multi‐item products and non‐homogenous vehicle types with different costs. Additionally, the production process involves multiple energy sources that emit different levels of air pollution. The main objective is to maximise profits while adhering to different carbon policies. To achieve this goal, the paper presents several supply chain models that are compared under different schemes: no carbon policy (basic one), carbon tax policy, carbon emission policy and carbon trading policy. These models were coded and solved to demonstrate their effectiveness for different conditions and scenarios. The results provide valuable insights for supply chain managers, enabling them to make well‐established decisions for executive planning. [ABSTRACT FROM AUTHOR]

We examine how environmental pressure influences board gender diversity. Drawing from resource dependence, strategic adaptation, and gender socialization theories, we develop and test the prediction that firms with worse environmental performance have a higher likelihood of increasing their board gender diversity following a rise in environmental pressure. Focusing on the third phase (2013–2019) of the European Union Emission Trading System (EU ETS), we exploit the unexpected increase in emission prices after the European Council's (EC) intervention in 2017 as a quasi‐natural experiment bringing heightened environmental pressure to firms. Our baseline sample consists of 182 polluting firms in 20 different EU ETS‐covered countries. In line with our main hypothesis, we find that board gender diversity increases with firms' industry‐adjusted levels of pollution in the post‐EC intervention period, with the effect being particularly pronounced for firms with a higher exposure to emission prices and lower diversity levels. Inconsistent with a window dressing explanation, highly polluting firms replace incumbent male board members with highly qualified women. Our findings, which survive several robustness tests, suggest that more stringent environmental regulation drives social and governance changes at top corporate levels. [ABSTRACT FROM AUTHOR]

With the increasing requirements for environmental protection, authorities have enacted different carbon policies to promote sustainable practices. This study considers the competition among different manufacturers and multiple demand markets in the supply chain network. We examine and compare their equilibrium decision conditions under three common carbon policies: carbon cap, carbon cap‐and‐trade, and carbon tax. Results suggest that under lower carbon caps, manufacturers greatly reduce their carbon emissions by reducing production quantities, which causes a decrease in profits. However, an appropriate carbon cap size can not only motivate manufacturers to reduce carbon emissions but also improve their profits. Under a certain price for carbon credit, the effectiveness of a carbon cap‐and‐trade policy is similar to that of a carbon cap policy, but it has more flexibility. Carbon tax is effective, but it brings more tax burden to manufacturers. We provide implications for companies to optimize their production methods to achieve sustainability. [ABSTRACT FROM AUTHOR]

The Low Carbon Fuel Standard (LCFS) plays a critical role in California’s efforts to reduce greenhouse gas (GHG) and air pollutant emissions from transportation. The LCFS incentivizes the use of fuels with lower life cycle GHG emissions by using a credit market mechanism to provide incentives for low-carbon fuels, using revenue generated by charges applied to high-carbon ones. Maintaining an approximate balance between LCFS credit and deficit supplies helps support a stable LCFS credit price and the broader transition to low-carbon transportation. The Fuel Portfolio Scenario Model, presented here, evaluates bottom-up fuel supply and LCFS compliance to inform LCFS policy decisions. We considered two key fuel demand scenarios: (1) the Low Carbon Transportation scenario, reflecting the expected transition to low-carbon transportation in California over the next 15 years, and (2) the Driving to Zero scenario, featuring a significantly higher consumption of petroleum gasoline. In both scenarios, 2030 LCFS targets around 30% resulted in a near-balance between credits and deficits, with some banked credits remaining. Several additional scenarios were modeled to explore the impact of target trajectory timing, alternate post-2030 targets, greater biofuel use, and other parameters. This fuel portfolio scenario modeling work can meaningfully inform policy development.

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]

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]

Facing the double constraints of the "double carbon" target and high-quality economic development, carbon trading policy is an important tool for realizing the emission reduction commitment; based on the perspective of microenterprises, the specific mechanism and spatial effect of carbon trading policy still need to be evaluated. Taking China's carbon emissions trading pilot as a quasi-natural experiment, this paper empirically investigates the impact of carbon trading policy on the carbon emission intensity of pilot enterprises and its mechanism of action, and its impact on the carbon emission intensity of neighboring enterprises, based on the multi-temporal double-difference model, moderating effect model, and spatial Durbin model with the A-sharelisted enterprises in the period of 2009-2019 as the samples. It is found that: 1) Carbon trading policy will reduce the carbon emission intensity of enterprises to different degrees, and there are significant differences under different ownership types, degrees of marketization and the level of digitization. 2) Under the influence of environmental uncertainty, ESG disclosure will weaken the effectiveness of carbon emission reduction in the pre-pilot stage of the policy; with the gradual improvement of the carbon trading policy and ESG disclosure mechanism, ESG ratings will positively regulate the inhibitory effect of the carbon trading policy on the carbon emission intensity of enterprises through multiple paths. 3) Carbon trading policy effectively reduces multiple negative spillovers through the demonstration effect and competition effect of neighboring enterprises, driving the carbon emission reduction behavior of non-pilot enterprise. The research in this paper enriches the research paradigm of carbon emission intensity influencing factors, provides reference suggestions for the government to improve its policies, and better contributes to the realization of the "dual-carbon" vision in China as soon as possible. [ABSTRACT FROM AUTHOR]

The Chicago Climate Exchange (CCX), which operated from its launch in 2003 to its sale to the Intercontinental Exchange (ICE) in 2010, was the world's first and still only cap-and-trade system covering all six major greenhouse gases (GHGs) Membership in CCX was voluntary, but all emissions reduction commitments, auditing and trading rules were mandatory via a legally binding civil contract, a first in history. The goal was to use a market-based solution to reduce carbon emissions at the lowest possible cost, and CCX drew more than 400 members to its system at the time when there were no mandatory greenhouse gas reduction policies in place in the United States or abroad. The question is why did major emitters, market participants, cities, states and other entities choose to act to use emissions trading to mitigate climate change when there was no requirement for them to do so? This paper examines the question, suggesting that the CCX model embodied aspects of theories put forward by economists such as Knetsch, Buchanan and Coase and that CCX could serve as a bridge between theory and practice for economists interested in further study of markets and public goods. The paper also highlights the influence of CCX as a rules-based single coherent entity that significantly influenced the development of what has become known as the "voluntary carbon market" (VCM), while being quite different from the VCM. In the process of building its operations, CCX also generated a number of firsts, including creating the world's first GHG registry, and inventing the world's first carbon-based tradeable unit, the carbon financial instrument (CFI), equivalent to one hundred metric tonnes of CO2e, and spearheaded a landmark joint venture in China that created China's first pilot carbon market, the Tianjin Climate Exchange (TCX). Given the start-up nature of CCX, its significant global membership and international coverage is notable. The paper suggests the evolution and growth of CCX represents perhaps the largest ever experiment in behavioral economics relevant to contemporary climate change and environmental issues, yet one of the least understood and studied other than by those who had been involved. The paper will explore the origins, rationale, structure, framework, rules and legacy of CCX, including recommendations based on lessons learned, as the world faces the compounding crisis of climate change and the urgency of meeting the objectives of the Paris Agreement to stem climate change, the myriad of disparate Net Zero pledges to reduce emissions, and additional international environmental agreements aimed to protect biodiversity and other natural systems and processes. [ABSTRACT FROM AUTHOR]