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

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

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]

Against the backdrop of climate change becoming a global hot topic, global carbon emissions continue to grow. As the world's largest developing country, China is facing increasingly severe pressure to reduce emissions in its development. At the same time, in the current context of low-carbon transformation, the country has also begun to vigorously promote the carbon emission trading market. In the development process of China's carbon emissions trading market, there are still problems such as uneven data quality, insufficient data accuracy and standardization, which affect the normal operation of the carbon emissions trading market. Therefore, while the carbon emissions trading market is rapidly developing, it is necessary to establish a comprehensive carbon emissions data management system. This article analyzes the problems and future development directions of China's carbon emission data management system, and designs an overall design scheme for a carbon emission data management system based on multi-source data fusion. Through comparative experiments of UOS (ultimate Oscillator) indicators, it was found that the data transmission capacity of the carbon emission data management system designed in this paper with multi-source data can gradually improve the UOS value through continuous use. At the end of the experiment, it obtained a UOS value of up to 91.23%, far exceeding the efficiency of traditional data transmission. [ABSTRACT FROM AUTHOR]

The Chinese government aims to balance employment stabilization and emissions reduction when it initiates an emissions trading scheme (ETS) to control carbon emissions. However, the policymakers should not neglect the role of imperfectly competitive market structure and market power from incumbent firms. In view of this, classical framework of Berman and Bui's (2001) is extended in this paper to clarify the theoretical mechanism of employment effect of the ETS considering firm-level market power. In addition, based on the firm-level panel data from 2008 to 2019 of China, the employment effect of each pilot ETS is measured with the method of difference-in-difference-in-differences. Then a moderating effect model is established to verify the role of firm-level market power on the heterogeneous employment effect among the pilot ETSs. Moreover, the employment effect is further decomposed to evaluate the influential mechanism from the perspective of firms' strategic behavior. It is found that there is negative employment effect of China's ETS policy, due to the significant moderating role of firm-level market power. This decrease in labor demand is mainly dominated by a negative output effect rather than a positive substitution effect because strategic allowance sellers with stronger market power tend to hire fewer employees to reduce carbon emissions by controlling production scale. However, the heterogeneity of policy effects resulted by market structure is also identified in different pilot regions. Employment dividend has been found in Beijing and Tianjin where strategic allowance buyers manipulate the carbon market and hire more employees to consolidate their market power. Therefore, policymakers should improve the design of the ETS to overcome the adverse employment effect duo to the region-specific market structure. [ABSTRACT FROM AUTHOR]

Fossil-based natural resources are carbon-intensive, and over-reliance on them often leads to persistent high carbon emissions at national or regional levels, resulting in the carbon curse. Based on the panel data of 114 resource-based cities in China from 2007 to 2020, this paper examines the carbon curse and solutions for these cities from the perspectives of total and intensity of carbon emissions. The results show that: Firstly, due to the different stages of urban development, resource endowment, degree of resource dependence, and policy background, there is a heterogeneity of carbon curse in China's resource-based cities. Secondly, the carbon emission trading policy can effectively mitigate the carbon curse in China's resource-based cities, and the robustness tests demonstrate the validity of this finding. Thirdly, under the carbon emission trading policy, industrial structure upgrading and digital transformation can play a secondary moderating role in resolving the carbon curse in resource-based cities, further strengthening the inhibitory effect of the carbon emission trading scheme on the carbon curse. In contrast, green technology innovation exhibits no enhancement in the impact of the policy. These findings contribute to the existing research on the carbon curse, offering valuable insights and policy implications for effectively addressing this challenge. [ABSTRACT FROM AUTHOR]

• Carbon emissions trading, industrial structure upgrading and green development are integrated into a unified analytical framework. • Taking the carbon trading mechanism as the moderating variable can effectively combine the method of comparative static analysis. • Whether in the long term or the short term, the carbon pilot policy and the industrial structure upgrading policy implemented at the same time will have excess benefits. • When factor flow between cities is considered, excess benefits still exist significantly. Clarifying the influence mechanisms of carbon emissions trading scheme (ETS), industrial structure upgrading (ISU), and green development is of great theoretical and practical significance. Existing studies have only focused on the role of ETS or ISU on green development and have not included them in an analytical framework. The DID model and the moderating effect model are therefore combined in this work to to explore how the ETS will affect the link between ISU and green development throughout the period of 2008 to 2019 using panel data from 271 Chinese cities. Through a series of robustness and endogeneity tests, we find that: (1) ETS can significantly moderate the U-shaped relationship between ISU and green development, and this impact is significant in both the long and short term; (2) When ETS and ISU are implemented at the same time, the effect of the combined actions is greater than the sum of the effects of the two policies implemented separately, which means that the combined actions has excess dividends; (3) ETS and ISU have significant direct effects and spatial spillover effects on green development, and the excess dividends of combined actions also exist significantly at the spatial level. The research results of this paper provide an important theoretical and empirical basis for establishing the combined actions of ETS and ISU. [Display omitted] [ABSTRACT FROM AUTHOR]

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

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

This paper studies the role of expectations and monetary policy in the economy's response to climate actions. We show that in a stochastic environment, without the standard assumption of the perfect rationality of agents, there is more uncertainty regarding the path and the economic impact of a climate policy, with a potential threat to the ability of central banks to maintain price stability. Market beliefs and behavioral agents increase the trade-offs inherent to the chosen mitigation tool, with a carbon tax entailing more emissions uncertainty than in a rational expectations model and a cap-and-trade scheme implying a more pronounced pressure on allowance prices and inflation. The impact on price stability is worsened by delays in the implementation of stringent climate policies, the lack of confidence in the ability of central banks to keep inflation under control, and the adoption of monetary rules tied to expectations rather than current macroeconomic conditions. Central banks can implement successful stabilization policies that reduce the uncertainty surrounding the impact of climate actions and support the greening process while remaining within their mandate. • This work investigates how expectations can shape a green transition. • Without fully rational agents impacts of climate policy are more uncertain. • Carbon taxes and cap-and-trade's drawbacks are enlarged by non-fully-rational agents. • Delayed action and low credibility in central banks cause major inflationary pressure. • A reactive monetary policy can reduce uncertainty on climate policies' impacts. [ABSTRACT FROM AUTHOR]

The involvement of journalism-based professionally generated content (JPGC) in social economic development is important to further enhancement of low carbon economy. This research studied the spatial externality of journalism-based professional generated content (JPGC) on carbon emission efficiency, and analyzes the interplay effect of journalism-based professional generated content (JPGC) and digital economy on carbon efficiency based on spatial econometric model. This research further studied the causal effect of carbon emissions trading pilots on carbon emission efficiency based on cross-function of journalism-based professional generated content (JPGC) and digital economy by using quasi-natural experiment. This research develops a inter-disciplinary study to low carbonization in green economy from linguistic perspective in public administration supported by social media. [ABSTRACT FROM AUTHOR]

The international division of the value chain brings both opportunities and challenges to developing countries. Integration into the global value chain (GVC) has become a new driving force for economic growth in developing countries while simultaneously creating huge pressures for the reduction of carbon emissions. The existing literature focuses on the measurement of GVC embeddedness and embodied emissions, but rarely on the influencing mechanisms between them. From the perspective of value-added trade, this study recalculates the emissions embodied in exports of developing countries using the multi-regional input-output model (MRIO), and analyzes the influencing mechanisms between the GVC and embodied emissions arising from four transmission paths: export scale, industrial structure, technological progress, and environmental regulation. The results show that there is an inverted U-shaped nonlinear relationship between the degree of GVC embeddedness and the carbon emissions of developing countries. Consequently, a low degree of participation in the GVC is not conducive to the improvement of a country's ecological environment; conversely, when GVC participation exceeds the inflection point, it helps to reduce the scale of embodied emissions. Export scale and industrial structure play important positive transmission roles in the impact of GVC embeddedness on carbon emissions embodied in exports, and developing countries are locked-in at the low end of the GVC. Environmental regulation plays a non-linear intermediary role in the relationship between GVC participation and carbon emissions, while technological progress has no significant impact. Thus, developing countries should actively participate in the GVC, while focusing on learning opportunities arising out of advanced low-carbon production technologies from developed countries, thereby benefiting from the technology spillover effect. [ABSTRACT FROM AUTHOR]

As the world's largest energy consumer and carbon emitter, China accounts for approximately one-third of global carbon dioxide (CO 2) emissions. Launched in 2021, China's national emissions trading scheme (ETS) has become a well-established market-based instrument in the country's efforts to peak CO 2 emissions and achieve carbon neutrality. This study, viewed as a quasi-natural experiment, examines the impact of China's ETS pilots. We evaluate the carbon emissions reduction effects and associated mechanisms of China's pilots using a propensity score-matched difference-in-differences model (PSM-DID) and Chinese State Administration of Tax (SAT) data. The findings show that the ETS pilots have led to a 4.3% and 7.5% reduction in the carbon emissions intensity and total carbon emissions of firms, respectively. Firms in the ETS pilot regions reduce carbon emissions and intensity mainly by increasing firms' willingness and investment in R&D. Further investigation reveals heterogeneity in carbon emissions reduction among firms of different sizes, leverage ratios, and ownership. The findings suggest that in order to fully realize the emissions reduction potential of the ETS pilots, the government should expand the range of entities covered and improve the liquidity of the carbon market. [ABSTRACT FROM AUTHOR]

This article analyzes the recently decided EU-wide emission trading scheme for road transport and heating fuels. The so-called ETS2 is part of the 'Fit for 55' policy package, which also includes tighter vehicle emission standards, a reform of energy taxation, provisions to enhance advanced fuel infrastructure and a Social Climate Fund to alleviate financial pressure for low-income households. We argue that the ETS2 should be understood as an element of a broader policy mix, which considers multiple market failures, fairness both within and across EU member states within the institutional constraints of EU policy making. We conclude by discussing specific potential modifications to the design of the ETS2 that could help achieve the EU's climate target in an efficient and equitable way. These include linking ETS and ETS2, reducing price volatility, increasing the size of the Social Climate fund, and clarifying penalties for countries missing targets under the Effort Sharing Regulation. • Various measures complement EU carbon pricing in heating and transport. • Distributional concerns, within and across countries, are key to policy design. • Various measures aim to ensure prices in ETS2 remain limited. • Continued inclusion of ETS2-sectors in ESR ensures rich EU countries must mitigate. • We propose further evolution of ETS, including linking, price corridors, larger SCF. Highlights: Political and economic analysis of the policy mix to decarbonize road transport with a special focus on the role of the recently decided new emissions trading scheme for this sector. [ABSTRACT FROM AUTHOR]

Renewable Portfolio Standards (RPS) and carbon emission trading (CET) system are the top-level system design of China's energy low-carbon transformation, which have great strategic significance for realizing the "carbon peak in 2030 and carbon neutrality in 2060". At present, China's tradable green certificates market and CET market are still in the initial stage. The implementation single system may have diverse trials and errors in its initial stage, and the market activity and transaction frequency are low. Therefore, this paper aims to explore whether the synergistic effect between the two systems can effectively promote China's energy low-carbon transformation. This paper establishes the system dynamic model of the synergistic effect between the RPS and CET in China's electricity market to reveal the influence mechanism and the synergistic effect. The results show that: (1) There is a positive synergistic effect between the RPS and CET, which will change with the institutional parameters. (2) The simultaneous implementation of the RPS and CET can effectively stimulate market vitality and promote the development of the renewable energy industry. (3) Higher quota and lower benchmark price can optimize power source structure, and improve social welfare and institutional performance. [ABSTRACT FROM AUTHOR]

To achieve the goal of low-carbon electricity transition, the carbon capture, utilization, and storage (CCUS) and a battery energy storage system (BESS) are considered as promising tools for fossil power and renewable power, respectively, to overcome the disadvantages of high carbon intensity and fluctuant output. The potential of these two technologies in the context of carbon trading was systematically analyzed and compared using the real option approach. The results showed that the positive effect of the carbon trading on the adoption of the CCUS was more significant than that of a BESS. Specifically, the influence of the emission quota policy on the adoption of CCUS is limited at beginning because its effects on cost perception and benefit perception are counteractive. In terms of the indirect impacts of the emission trading scheme, electricity marketization can promote the utilization of CCUS and BESS. The potential revenue from selling electricity and emission quotas embodied in the additional operation time can significantly encourage fossil power enterprises to upgrade in advance. Additionally, the carbon cost delivered to the electricity price can increase the revenues of renewable power enterprises and promote the utilization of the BESS. Based on these findings, some policy implications are provided. [ABSTRACT FROM AUTHOR]

With the severe situation of climate and environmental issues, carbon emissions have aroused great attention from the academic community and industry. Building and improving the carbon trading market has become the focus, among which the prediction of carbon emissions trading prices is crucial. However, randomness and instability make it a challenging task to predict price series accurately. To obtain accurate point prediction results, a combined prediction idea is constructed in the study. In addition, considering that the point prediction framework contains less data information, in order to bridge this gap, an interval prediction frame is developed in this research. The optimal distribution of data sequence is obtained by using distribution function and optimization techniques, and successfully achieve different levels of uncertainty prediction according to the point prediction results. Several comparison experiments were carried out using the daily price of carbon emission futures of the European Union Emissions Trading System and the forecasting performance of the proposed forecasting framework was verified through experimental analysis. Experiments and discussion demonstrate the superior performance of the proposed prediction scheme and its excellent forecasting ability for carbon emissions trading price prediction. [ABSTRACT FROM AUTHOR]

• This study aims to investigate the spatial spillover effect of CET policy. • A spatial difference-in-differences (SDID) model is developed. • The CET policy has promoted the carbon intensity reduction in the surrounding area. • Technological progress is a mediating variable for the spatial spillover effect. The carbon emissions trading (CET) market has been viewed as an effective way to improve CO 2 emissions performance against the background of achieving China's carbon neutrality before 2060. This study investigates the spatial spillover effects of the CET policy on industrial carbon intensity reduction by developing spatial difference-in-differences (SDID) models. Then, a mediating effect model is used to test whether technological progress is a mediating variable of the spillover effects of the CET policy. The results show that the CET policy has negative spatial spillover effects, implying that the local CET policy has significantly reduced the industrial carbon intensity in the surrounding area. Technological progress is confirmed to be a mediating variable by which the CET policy reduces carbon intensity in the surrounding area. Hence, we suggest establishing a unified CET system including all industries with high emissions in China, and upgrading the low carbon technologies as soon as possible. [ABSTRACT FROM AUTHOR]

China's approach to environmental regulation relies heavily on campaign-style enforcement and blunt-force regulation. While considered effective in the short run, this approach is often inefficient and generates unintended regulatory outcomes in the longer run. At the same time, China continues to experiment with the use of market-based approaches that are theoretically more efficient and have the potential to facilitate sustained reductions in carbon emissions. Arguably the most high-profile example is the Guangdong Emissions Trading Scheme (ETS), which was launched in 2013 as a national pilot scheme. We construct a synthetic control of Guangdong and analyse 51,076 party-led newspaper reports to show that while the ETS reduced emissions in the short run, these reductions were systematically associated with political signalling. Notably, emissions reduced substantially upon the announcement of the ETS in 2011 – a full two years before the scheme was scheduled to begin – before rebounding to near pre-ETS announcement levels by 2017. The presence of an anticipation effect and the systematic association between political signalling and emissions reductions mirrors findings on China's more direct approaches to environmental regulation. Our findings suggest that market-based mechanisms in China may not be qualitatively different from more direct forms of environmental regulation. • We use the Guangdong ETS to examine market-based approaches in the Chinese context. • No systematic evidence that the ETS functions according to the market mechanism • ETS performance is systematically associated with political signalling. • Findings are consistent with the wider Chinese environmental governance literature. • Market-based mechanisms may not be qualitatively different from direct regulation. [ABSTRACT FROM AUTHOR]

Carbon trading price is the core component of the carbon emission trading market. Accurate carbon trading price prediction is of great significance for forming an effective carbon trading market and achieving the "dual carbon" goal. Based on the carbon trading price data in China Emissions Exchange, this paper predicts the carbon trading price through the proposed hybrid model of SSA+LSTM. After comparing with the classical methods based on econometrics, machine learning and deep learning, it is found that the prediction model proposed in this paper achieves the optimal values of RMSE and MAE, and is a relatively effective carbon trading price prediction model. [ABSTRACT FROM AUTHOR]

Against the backdrop of addressing the dual challenges of tightening energy constraints and carbon emission reduction, this paper, building upon the construction of an urban-level Energy Trilemma Index, employs a Difference-in-Differences (DID) model to assess the impact of carbon emission right trading policy (CERTP) on the energy trilemma (ET). Key findings include: Firstly, compared to non-pilot areas, the ET in CERTP pilot areas decreased by 1.86 %; the policy's impact persists and is even greater in the long term, reaching 2.84 %. Secondly, CERTP stimulates green technological innovation, improves energy consumption structures, and alleviates ET levels. Furthermore, the study shows that CERTP, as a market-driven energy-environmental strategy, is further enhanced by the regulatory effects of marketization and government intervention. Lastly, the policy's impact is more pronounced in eastern China, resource-based cities, regions with stringent environmental regulations, and areas with high carbon prices. Based on these findings, the paper proposes a series of policy insights, not only aiding in understanding the causal relationship between CERTP and ET but also providing valuable references for designing carbon trading mechanisms to address ET. Importantly, the conclusions offer beneficial guidance for China's energy structure optimization, ensuring energy security and sustainable development goals. [Display omitted] • The energy trilemma index levels of Chinese cities have been calculated. • The impact of carbon emission right trading policy on China's energy trilemma has been analyzed, with a discussion on the short-term and long-term policy effects. • Two intermediary channels through which carbon emission right trading policy mitigates the energy trilemma have been discussed: green technological innovation and the energy consumption structure. • The positive moderating effects of marketization levels and government intervention have been analyzed. • The inhibitory effect of carbon emission right trading policy on the energy trilemma is more pronounced in regions with high carbon prices, in eastern China, resource-based cities, and areas with strict environmental regulations. [ABSTRACT FROM AUTHOR]

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]

The carbon emissions trading pilot policy in China serves as a crucial market-oriented regulation tool to achieve green development. This study explores the impact of this policy on Chinese green TFP (GTFP). We utilize the provincial panel data from 2000 to 2017 and employ the GNDDF-Luenberger model to characterize GTFP. The results show that the carbon emissions trading pilot policy significantly improves GTFP. The effects are more pronounced in regions with more foreign direct investment, smaller technological gaps and higher levels of marketization. The carbon emissions trading pilot policy improves GTFP by promoting practical innovation. Furthermore, the promotion of GTFP through the carbon emissions trading pilot policy primarily relies on the enhancement of technological efficiency, rather than technological improvement. Our study provides policy implications for establishing an effective carbon emissions trading market in China. • We study the impact of this policy on Chinese green TFP (GTFP) and employ the GNDDF-Luenberger model to characterize GTFP. • We find that the carbon emissions trading pilot policy significantly improves GTFP. • The effects are more pronounced in regions with more FDI, smaller technological gaps and higher levels of marketization. • The carbon emissions trading pilot policy improves GTFP by promoting practical innovation. • The promotion of GTFP by carbon emissions trading pilot policy relies mainly on technical efficiency improvements. [ABSTRACT FROM AUTHOR]

The top-down governance imperative in addressing climate change distinguishes climate policies from traditional environmental policies catering to bottom-up governance demand across most countries. This study aims to explore the effectiveness of China's climate policy mix, given its representation as a country with a top-down climate governance demand and influence on global climate governance outcomes due to its enormous economic aggregate and emission base. Utilizing a balanced panel dataset comprising 288 Chinese cities from 2001 to 2020, this study employs a two-way fixed effect model to examine the impact of the carbon emission trading scheme (ETS) and the carbon emission control policy (ECP) on carbon dioxide emissions, along with their heterogeneous effects and potential mechanisms. The findings indicate that both ETS and ECP have substantially reduced carbon dioxide emissions, although their synergistic effect has not yet manifested. Specifically, a 1 CNY increase in ETS prices or a 1 % growth in ECP targets leads to a decrease of 1.232 million tons or 0.814 million tons in carbon dioxide emissions, respectively. Moreover, the effects of the ECP are reinforced in resource-based cities or those receiving greater fiscal support, while diminishing with the rise in foreign direct investment. Conversely, the heterogeneous effect of the ETS is negligible. Further mechanism analysis reveals that technological innovation and energy structure transformation are the primary channels for reducing carbon dioxide emissions. These findings carry significant implications for climate policy formulation in China and other developing countries. Graphical abstract of this study. [Display omitted] • The top-down governance demand distinguishes climate policy from environmental policy. • The effects of the carbon emission trading scheme and control policy are assessed. • The emission trading scheme and emission control policy reduce carbon emissions. • The effects of climate policies display significant heterogeneities. • Technological innovation and energy structure transformation are likely mechanisms. [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]

Faced with the challenges posed by the Paris Agreement targets, biomass co-firing offers an efficient measure to decarbonize coal-fired power generation. Although economic burden of biomass co-firing has severely limited the large-scale application, effective CO 2 emission trading system has the capability to subsidize and incentivize. Existing studies related to biomass co-firing under CO 2 emission trading system fail to consider multiple decision makers and uncertain decision-making environment. To address these limitations, this paper proposes a bi-level model for coal power decarbonization via biomass co-firing considering CO 2 emission trading system in an uncertain decision-making environment. It considers the interactive relationship between multiple decision makers. The upper-level model focuses on the formulation of CO 2 emission trading system, and the lower-level model decides biomass co-firing and emission reduction. Fuzzy set theory is employed to describe the uncertain parameters and convert them into exact values. To calculate the model, a bi-level interactive method based on satisfactory solution is developed. A case study is conducted to illustrate the effectiveness and practicality of the proposed model. Results show that the price of initial quotas fluctuates between 38.01 and 48.7 CNY/tonne, and the lowest carbon intensity is 0.741 kg/kWh. Management recommendations are provided to support CO 2 emission reduction. • A bi-level model for biomass co-firing under carbon emission trading is developed. • The hierarchical decision process between multiple stakeholders is considered. • Fuzzy set theory is employed to effectively handle real-world uncertain information. • A case study in China is conducted to demonstrate the practicality of the method. • The method effectively achieves carbon reduction and reaches Stackelberg equilibrium. [ABSTRACT FROM AUTHOR]

Exploring the synergistic control of carbon dioxide and pollutants is significant to the dual carbon target. This study first evaluates the effect of CET on the synergistic emission reduction of carbon dioxide and different pollutants. Moreover, this study investigates the mechanisms of synergistic emission reduction through the pathways of technology progress and structure adjustment. Technology progress is categorized into technology research and development, technology introduction, reverse technology spillover and technology purchase. Structure adjustment contains industrial structure and energy structure. Finally, the impact of CET on the synergistic emission reduction in the surrounding regions is analyzed. The results indicate that the CET could promote the synergistic emission reduction of carbon dioxide and pollutants, including air pollutants (SO 2 , PM 2.5), wastewater and solid waste. The synergistic emission reduction of CO 2 and SO 2 could be enhanced through reverse technology spillover, technology purchase and industrial structure adjustment. The synergistic emission reduction of CO 2 and PM 2.5 could be enhanced through R&D and reverse technology spillover. The synergistic emission reduction of carbon dioxide and ammonia nitrogen could be enhanced by increasing R&D, technology purchase and energy structure adjustment. The CET could improve the synergistic emission reduction effect of carbon dioxide and air pollutants in the surrounding regions. • Synergistic emission reduction effect of carbon dioxide and pollutants is evaluated. • The pollutants including air pollutants, wastewater, and solid waste are considered. • The impact of carbon emission trading on synergistic emission reduction are explored. • Impact mechanism through technology progress and structure adjustment is discussed. [ABSTRACT FROM AUTHOR]

This article presents skewed multifractal cross-correlations between price and volumes on the carbon emissions trading markets in China and Europe. The BEAST algorithm is first used to detect change points in financial time series and to divide series into two adjacent intervals. The study performs a skewed multifractal detrended cross-correlations analysis and further investigates the impact of the COVID-19 pandemic on multifractality and risk between price and volumes on both markets, from 30 April 2014 to 25 July 2023. The results demonstrate that the multifractality of cross-correlations in both markets underwent significant changes before and after the change points, indicating skewed multifractality. In both markets, the price-volume nexus exhibited increased anti-persistence, higher multifractal risks, and reduced market efficiency after the outbreak of the pandemic. This may be attributed to the pandemic-induced shifts in carbon emissions trading market trends and heightened volatility. In conclusion, the outbreak of the pandemic had increased the instability of the carbon markets and the Hubei market exhibited higher levels of multifractality and multifractal risk. • Skewed multifractal cross-correlations of Hubei and EU carbon markets is investigated. • The BEAST algorithm is first used to detect change points and MF-DCCA is used. • The outbreak of the pandemic has impacted multifractality of the two carbon markets. • The Hubei market exhibited higher levels of multifractality and multifractal risk. [ABSTRACT FROM AUTHOR]

Under the background of green certificate trading (GCT)‑carbon emission trading (CET) market, the application of P2P trading in regional integrated energy system (RIES) has not been fully explored, and it is urgent to design a reasonable prosumer P2P trading mechanism to adapt to the development of diversified electricity market. Therefore, this paper proposes a prosumer P2P cooperative trading model based on generalized Nash bargaining. Specifically, based on the differential modeling of various types of prosumers, this paper constructs a prosumer P2P cooperative trading model based on generalized Nash bargaining theory, and quantifies the bargaining power of prosumers through the contribution value of interactive operation. The GCT-CET collaborative mechanism is introduced to promote the consumption of distributed energy by transforming carbon quotas through green certificates. In addition, this paper designs a warm start and adaptive step alternating direction multiplier method decentralized algorithm (WAS-ADMM) to improve the solution efficiency and protect the trading privacy of prosumers. Through a case study, it analyzes the impact of prosumers' P2P cooperative trading on the consumption of distributed energy, prosumers' GCT-CET costs and comprehensive costs in the context of GCT and CET market. The simulation results show that the proposed trading model reduces the GCT-CET costs of the prosumers' alliance by about 24.98%. • A P2P cooperative trading model of integrated energy is constructed based on GNB. • A GCT-CET collaborative mechanism is proposed to promote the consumption of renewable energy. • An improved decentralized algorithm based on WAS-ADMM is designed to solve the P2P trading model. [ABSTRACT FROM AUTHOR]

Using a comprehensive dataset compiled to document all water quality trading programs in China, this paper presents a systematic evaluation of this market-based policy approach to pollution control. We offer new evidence on the question of whether quality improvements in surface waters with water quality trading have exceeded those in areas that were only subject to more traditional regulations during the same time period. Our research design compares ambient water pollution at monitoring sites downstream of areas that saw the establishment of water quality trading programs relative to pollution at sites without such upstream programs. The findings indicate that water quality trading does not have a discernible impact on ambient water quality. These results are robust to using alternative measures of the presence and extent of upstream water quality trading. Furthermore, event study graphs provide no indication that water pollution has decreased in the long run. [ABSTRACT FROM AUTHOR]

• Focusing on the impact of geographical environment on the ETS in reducing PM2.5 concentrations. • Heterogeneity analysis according to topographic factors such as basins, coastal cities and plains. • Comparing clustered standard errors at the provincial level and clustered standard errors at the municipal level on the assessment of air pollution policy effects. The dispersion of PM2.5-related pollutants in the atmosphere is intricately connected to the natural geographical environment. Nevertheless, previous evaluations of environmental policies regarding urban PM2.5 concentrations have rarely taken into account the influence of the natural geographical environment. Utilizing panel data and DID models for 266 prefecture-level cities in China from 2006 to 2019, this study thoroughly examines the impact of geographical environment on the China's Carbon Emissions Trading Scheme (ETS) in reducing urban PM2.5 concentrations. The results suggest that (1) Neglecting the impact of natural geographical environment, although the ETS effectively reduces the PM2.5 concentration in the pilot cities from an overall perspective, there are anomalies in the robustness test and the heterogeneity analysis, which are mainly reflected in the decrease in the significance of the PSM-DID results, and the positive haze-enhancement effect of the ETSs of Fujian, Beijing, Shanghai, etc. (2) Considering the influence of geographic environment, combined with the spatial correlation between China's topographic distribution and PM2.5 concentration, four control groups of Basin, Coastal, etc. are screened for group regression, and the results show that geographic environment factors significantly affect the emission reduction effect of each ETS on PM2.5 concentration. (3) The regression results of the three types of spatial econometric models all indicate that there is a significant spatial spillover effect of ETS to reduce PM2.5 concentration. Considering the influence of geographic environment on the spatial spillover effect and the fact that China's provincial division is mostly based on geographic environment factors, in order to more reasonably assess the effect of the policy on the PM2.5 concentration, the researcher should select sample cities with no spatial correlation of PM2.5 and clustering robust standard errors to the provincial level. [ABSTRACT FROM AUTHOR]

In response to the growing imperative of addressing environmental concerns and aligning with governmental regulations in supply chain management, this study navigates the optimization landscape of closed-loop supply chains through the lens of carbon cap and trade policy. The optimization model aims to account for the impact of consumer demands, distribution networks, and retail operations on the overall closed-loop supply chain dynamics. The innovative approach introduces an optimization model designed to grapple with the challenges posed by imprecise information within an intuitionistic type-2 fuzzy framework. The bi-objective mixed-integer model integrates pivotal objectives, including carbon emissions reduction, total cost minimization, and trade policy compliance. For a nuanced comprehension of the proposed model, we present three numerical examples, offering clarity on its complexities. Following this, a sensitivity analysis visually depicts the impact of fluctuations in demand and capacity on the defined objective functions. Furthermore, these conclusions unveil promising avenues for future research and exploration within the ambit of this study. • Proposing a multi-period closed-loop retailing strategy for consumer services. • Developing a supply chain model that incorporates carbon cap and trade policy. • Analyzing a mixed-integer linear bi-objective model under mixed uncertainty. • Applying defuzzification technique based on a ranking function for decision-making. • Demonstrating the impact of carbon cap and trade policy through two applications. [ABSTRACT FROM AUTHOR]

The optimization of regional power generation mix is important to achieve the carbon peaking and neutrality goals. This study proposes a multi-objective optimization model for regional long-term electricity system planning considering both the carbon cap-and-trade mechanisms and renewable portfolio standards. Baseline scenario, strict policy scenario and loose policy scenario are designed to compare the optimization results of power generation mix. Furthermore, a green transformation comprehensive index (GTCI) is proposed to evaluate the effect of green transformation in power sector. The case study of Guangdong province in China is conducted, and the results indicate that, in the baseline scenario, the share of renewable energy generation would reach to 34.97 % in 2035, and the carbon emission would peak in 2030; in the strict policy scenario, the share of renewable energy generation would reach to 37.28 % in 2035, and the carbon emission would peak in 2025; in the loose policy scenario, the share of renewable energy generation would reach to 33.05 % in 2035, and the carbon emission would peak after 2035; the value of GTCI reflects that the power system of Guangdong province has good trend of green transformation. This study could support important reference for the power system transformation at regional level. [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]

Green energy transition from fossil fuels to wind and solar is inevitably driven by environmental and climate policy. How the emission trading scheme (ETS) influences energy transition in China deserves to be analyzed in the context of carbon neutrality. This study analyzes the impact of ETS on neutral and biased technological progress of China's power generation sector by decomposing the power sector by generation technology in a translog cost function. It then analyzes how the ETS pilot policy brings about biased technological progress between different generation technologies using difference-in-differences and synthetic control methods. The results show that ETS pilot policy contributes to green energy transition by bringing about neutral technological progress of China's power generation sector, utilization rate decrease of thermal power capacity and stimulating generation units' upgradation of the thermal power sector. Although China's energy transition is remarked by substitution of thermal power sector with variable renewable energy sector, there is no evidence that ETS pilot policy has contributed to this trend. However, it inhibits innovation of variable renewable energy in pilot regions. It is necessary for the government to take measures to strengthen ETS policies' impact on energy transition through supporting innovation and expansion of the VRE sector. • ETS pilot policy leads to neutral technological progress of power sector in China. • ETS is biased to save input cost of solar and wind power generation. • ETS stimulates investment and upgradation of thermal power generation sector. • Pilot regions with higher carbon prices are inhibited in green innovation due to profit loss. [ABSTRACT FROM AUTHOR]

Air pollution caused by high transport-related emissions is already a serious problem, whereas user heterogeneity results in most of the existing emission reduction instruments cannot being applied in practice, despite reducing social inequity. In this paper, we propose an emission trading scheme (ETS) based on a dual-market mechanism in a multimode network with heterogeneous users in value of time (VOT), in order to primarily achieve the objective of emission reduction while taking equity promotion into account. Specifically, emission permits are issued in the primary market and travelers trade permits freely in the secondary market by bearing transaction cost which are assumed to be asymmetrically split between buyers and sellers. The High-Occupancy-Vehicle-based cyclic carbon emission permit (HOV-based CCEP) scheme is applied in the ETS as permit charges to better achieve the objectives. Unlike the previous studies of charging scheme, the compensatory permit rates in our model could be charged from private car (PC) passengers, waived for customized bus (CB) passengers and subsidized for public transit (PT) passengers. The market trading processes considering transaction cost and travel choice behaviors are formulated as a variational inequality problem (VIP). The multimode equilibrium solution of which is obtained by developing a relaxation algorithm with a multi-round iteration strategy. Finally, we conduct numerical experiments based on Braess and Sioux Falls networks to demonstrate the merits of the proposed model and reveal the results that highlight the importance of ETS and multiple public transport modes in the heterogeneous system for emission reduction and equity promotion. • An emission trading scheme is proposed in networks with heterogeneous users. • A multimode network with private car, customized bus and public transit modes is constructed. • A variational inequality for both user equilibrium and market equilibrium is formulated. • The proposed method is demonstrated in the Braess and Sioux Falls networks. [ABSTRACT FROM AUTHOR]

Technological change represents a fundamental means to achieve carbon neutrality. However, considering the dual externalities of low-carbon technologies (LCTs), timely and appropriate government intervention is imperative. This study explores the mechanisms and trajectories of low-carbon technology adoption and diffusion in the emission trading scheme (ETS). The proposed agent-based model, using the most recent data from 1057 thermal power firms, created a virtual ETS operation, especially considered the complexities, including various abatement options, heterogeneity among firms and technologies and different trading strategies. The results show that the firms prefer to adopt LCTs with low abatement cost, rather than those with high abatement potential. Meanwhile, the strength of ETS mechanisms is positively correlated with the diffusion of LCTs. This study overcomes the limitations of previous macroscopic studies that fail to explain the diffusion of specific technologies and examines for the first time the dynamic diffusion trends of LCTs with different mechanism designs. • This study analysed the working mechanisms and trajectories of low-carbon technology (LCTs) adoption and diffusion. • This study proposed a multi-agent hybrid decision-making model to simulate a virtual emission trading scheme (ETS). • This estimation results capture the heterogeneous impacts of different ETS designs on the adoption and diffusion of LCTs. • Firms usually prefer to adopt LCTs with low abatement cost rather than those with high abatement potential in the ETS. • The strength of ETS mechanisms is positively correlated with the diffusion of LCTs. [ABSTRACT FROM AUTHOR]

Carbon cap-and-trade policy based on market mechanism becomes an important means to restrain shipping logistics enterprises' carbon emission reduction. This paper studies the new requirements of shipping enterprises under the pressure of carbon emission reduction. Considering the logistics service supply chain composed of two competing providers and one integrator under the constraint of carbon cap-and-trade policy, this paper explores the optimal pricing and revenue decision of shipping logistics service supply chain through vertical cooperation, horizontal cooperation between providers and revenue sharing cooperation among integrators. This paper obtains feedback strategies under different cooperation modes by constructing a game model. In the vertical game, the shipping logistics supplier is the Stackelberg leader, and the shipping logistics integrator is the follower; there is a Nash equilibrium in the emission reduction decisions among suppliers in the horizontal game. On this basis, the results of different cooperation modes are compared, and the influence of competitive strategies on the optimal results is discussed. We found that the vertical cooperation of the shipping logistics service supply chain has a higher carbon emission reduction rate and a lower sales price, and the horizontal cooperation of shipping logistics suppliers can improve their own profits but reduce the income of the shipping logistics integrators and consumer welfare. When the revenue sharing contract provides the shipping logistics integrator with a share proportion in a certain range, the revenue sharing contract can generate higher supply chain profits than the integration of two chains, which can urge shipping logistics suppliers to forfeit the horizontal cooperation and help the shipping logistics service supply chain achieve win-win results. [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]

The benefits and costs of carbon pricing policies (CPPs) are not equally distributed across regions, and the specific CPP options would inevitably affect their ancillary benefits and costs and how they are distributed across different regions. This brings up challenging and ongoing questions within CPPs—how policymakers weigh the overall efficiency across policies with the potential equity trade-offs at hand. Here, we bridge an economy-energy-enviro-health assessment model and combine it with 5000 Monte Carlo simulations to comprehensively evaluate the economic, climate, and health outcomes of China's CPPs, including regional emission trading scheme (ETS), national ETS, and carbon tax (CT). We find that switching regional to national ETS—much like China's policy progress over the past decade—can increase the net benefit by 143 (135–151, 90% confidence intervals) billion RMB, yet these ancillary net benefits distribute unevenly across regions. Fossil fuels supplying provinces (e.g., Shanxi), for instance, are particularly burdensome under national ETS. Allocating more generous CO 2 caps to economically developing provinces may improve regional equity under the national ETS but come at the expense of reduced policy efficiency. Moreover, we find that carbon tax can generate the largest net benefits among our focused CPPs, up to 303 (294–311) and 159 (159–160) billion RMB higher than regional and national ETSs in 2030. Differentiating from ETS, economically disadvantaged regions can gain more net benefits under the CT policy, thus decreasing the Gini coefficient over regional net benefits from 0.26 (national ETS) and 0.23 (regional ETS) to 0.20. These spatially explicit analyses uncover differential aggregated and distributional outcomes by different CPPs, which are highly policy-relevant, such as how and where to introduce compensation schemes or which carbon pricing options are more economically optimal. • Despite a 143 billion RMB increase in net benefits, regional inequity under national ETS is larger than regional ETS. • Allocating more CO 2 caps to economically developing provinces may improve regional equity but reduce efficiency. • The net benefits under CT are 303 and 159 billion RMB higher than regional and national ETSs. • The net benefits are more evenly distributed across regions under CT than ETSs. [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]

Sustainability in food supply chains (FSCs) is crucial due to its impact on environmental, economic, and social dimensions. This review analyses closely the complex interaction between carbon price and sustainability in the entire food supply chain. It gives a thorough assessment of the intricate linkages between carbon pricing mechanisms and ethical business practices in the food sector. Through interesting case studies on carbon emission reduction, the first portion investigates regional implementations of carbon pricing mechanisms, such as carbon taxes and cap-and-trade systems. It also discusses ecologically friendly ways of food production, processing, packaging and transportation, illustrating how carbon prices have a considerable impact on plans for emission reduction and drive innovation. This study also analyses the social and economic consequences of carbon pricing on the food sector by assessing consumer behavior, job creation possibilities, and economic restrictions. Concerns about equality and social justice brought up by carbon pricing measures are also addressed. In addition, this provides a full review of extant policies, their efficacy, highlights the vital function of carbon price, advocates group activities and proposals for enhancing sustainability in the business. It also focuses on key challenges, recent technical advancements, and prospective directions in both research and policy. • Carbon-pricing plays a crucial role to ensure sustainability in food supply chain. • Effective carbon pricing incentivizes companies to adopt sustainable practices. • Government initiatives promote sustainability and reducing carbon emissions. • Efficiency of current policies and regulations related to carbon pricing were discussed. • Policy recommendations to address sustainability challenges in the food sector were covered. [ABSTRACT FROM AUTHOR]

In this paper, we provide a novel application of synthetic control methods by offering two major modifications to the existing methodological framework. We provide the first complete ex-post evaluation of the causal impact of carbon pricing on aviation supply, expressed in terms of airline output (i.e., number of seats supplied at the airline-route level). We investigated the policy change in the European Union Emission Trading System (EU ETS), the first large greenhouse gas emissions trading scheme in the world. We distinguish between low-cost, regional and full service airlines, short and medium/long-haul routes, routes towards (or from) hub airports versus non-hub airports, monopolistic versus non-monopolistic routes. The analysis shows that the EU ETS does not have a substantial impact on the average aircraft size, while it has caused a reduction of total airline seat capacity and flight frequency, with the percentage of airline seat capacity reduction reaching above 20% at its peak. The overall effect of the policy has a remarkable impact on low-cost and regional airlines, short-haul routes, spoke–spoke markets and monopolistic routes. Our results are the first empirical confirmation to the theoretical prediction in the aviation literature that emission charges will reduce flight frequency and increase load factors while having no effect on aircraft size. [ABSTRACT FROM AUTHOR]

The EU has established the world's first cross-border emission-trading systems (ETS) for greenhouse gas (GHG) emissions, currently covering aviation, emission-intensive sectors, and electricity (EITE). The EU Commission has offered to apply emissions trading in new sectors where emissions from maritime transport will be incorporated into the current EU ETS, while a separated emissions trading system will cover emissions from road transport and the building sector. This paper employs a multi-regional multi-sectoral computable general equilibrium (CGE) model with two simultaneous international emission permit markets. After examining the abatement costs for the EU regions, various policy scenarios are implemented to study the welfare effects of forming an ETS covering the sectors other than EITE (NEIT) and its linking with the EITE sectors under two different baselines and four emission reduction targets. The results provide several important insights: (i) Marginal abatement costs in Germany and the Eastern European Union region (EEU) are significantly lower than in the rest of the EU regions. (ii) The carbon price in the emission permit market covering NEIT is significantly higher than the carbon price in the emission permit market covering EITE. (iii) Germany and EEU appear as notable suppliers of emission permits in both markets. (iv) There is a significant aggregate welfare gain under the scenario in which the ETS covering NEIT co-exists parallel with the ETS covering EITE. (v) The aggregate welfare in the EU under the full integration of EITE and NEIT may fall below its value under the scenario with two parallel emission permit markets. [ABSTRACT FROM AUTHOR]

Carbon emissions trading schemes are an essential market-oriented mechanism for carbon reduction. This study assumes China's emissions trading scheme (ETS) policy as a quasi-natural experiment to examine its impact on green technology innovation using panel data of cities in China from 2008 to 2018. The moderating effects of effective governance and enterprise viability are further investigated from the perspective of new structural economics. The results indicate that China's ETS policy can significantly promote green technology innovation in pilot cities. Further findings demonstrate that environmental regulation and development strategy can substantially enhance this positive effect, confirming the effectiveness of Chinese policies. A lower proportion of state-owned enterprises and higher total factor productivity is also found to strengthen such impact, indicating that viability can advance the effectiveness of market environmental regulations. Moreover, we identify significant regional heterogeneities indicating that the cities in the western region or old industrial bases do not fully leverage the advantages of the green innovation effect of ETS. Our findings provide insights for policymakers in developing countries regarding the role of efficient markets and effective government interventions for advancing carbon reduction and green technology innovation through policy optimization. [ABSTRACT FROM AUTHOR]

Accurate carbon price forecasting is crucial for effective carbon trading policies that mitigate climate change. The volatility and uncertainty of carbon prices pose significant challenges. Traditional frameworks that use a single model for all intrinsic mode functions (IMFs) fail to leverage the diverse strengths of different models. In this paper, we propose DecEnsInt, a novel framework that utilizes an ensemble of models tailored to distinct frequency domains. By using Complete Ensemble Empirical Mode Decomposition with Adaptive Noise (CEEMDAN) to decompose historical prices into IMFs and optimizing ensemble parameters through Sequential Least Squares Programming (SLSQP) for each frequency domain, DecEnsInt enhances forecasting performance. Extensive experiments on four Emissions Trading System (ETS) datasets, evaluated using RMSE, MAPE, MAE and R 2 , demonstrate DecEnsInt's superiority, achieving relative improvements in key metrics by 10.58% to 17.72% over runner-up ensemble methods. DecEnsInt also achieves better robustness and stability across different forecasting steps, proving its effectiveness in handling the complexities of carbon price forecasting. • Different models show distinct forecasting ability in different frequency domains. • Ensemble technique with Intrinsic Mode Function boosts overall predictive accuracy. • Optimizing ensemble parameters by solving individual optimization problems. • The framework significantly enhances carbon price forecasting in four data sets. [ABSTRACT FROM AUTHOR]