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

With the global focus on climate and environmental issues, green and low-carbon development has become an important way to promote efficiency. However, more research is needed on whether the pilot carbon emissions trading policy can promote economic development while reducing emissions. The panel data of 30 regions in China from 2005 to 2020 are used to examine the impact of carbon emission trading policy on regional total factor productivity. The findings demonstrate that, while the carbon emissions trading pilot policy can enhance total factor productivity, its impact varies across regions. Notably, the policy fosters TFP growth in Beijing and Tianjin but hampers it in Hubei and Guangdong provinces, signifying regional heterogeneity in its effects. These results remain robust even after conducting placebo tests and DID model. Furthermore, the mechanism study reveals that the carbon emissions trading pilot policy affects total factor productivity through pure technical efficiency and scale effects. Given the more stringent environmental regulations brought by the "carbon neutrality" goal, understanding the impact of carbon emissions trading policies on total factor productivity lays the groundwork for establishing a national carbon emissions trading market. This promotes sustainable economic development by helping to achieve a win-win situation between environmental protection and economic growth. [ABSTRACT FROM AUTHOR]

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

In the face of global climate change challenges, China's implementation of the carbon emission trading (CET) pilot policy has provided new empirical research opportunities. Based on a dataset covering 281 Chinese cities from 2005 to 2021, this paper employs econometric models to conduct an in-depth analysis of the policy's impact on urban green innovation (UGI). The findings indicate that the CET pilot policy has significantly promoted green innovation activities in affected cities, with positive effects observed both directly in pilot cities and indirectly in non-pilot cities through spatial spillover effects. In addition, the policy has been found to encourage technological investment and enhance public environmental awareness (PEA), further advancing green innovation. The paper also unveils comprehensive policy effects, indicating that the Big Data Comprehensive Test Zone policy and the New Energy Demonstration City policy work synergistically with the CET pilot policy in advancing green innovation. These findings provide valuable experiences and insights for designing environmental policy tools at the national level, promoting green development, and constructing climate change response strategies. [ABSTRACT FROM AUTHOR]

In the context of the global response to climate change, the shipping industry is facing unprecedented pressure and challenges to reduce emissions. Under the unified leadership of International Maritime Organization (IMO), the international community has begun to take actions to promote the development of the shipping industry in a more environmentally friendly and sustainable direction. As an IMO category (a) member, China is promulgating a series of emission reduction policies to guide the green transformation of its shipping industry. This study first examines China's recent shipping emission reduction policy post "dual carbon" proposal, assessing its key focus and the current efficacy of China's shipping emission reduction governance. Based on this, the study examines the challenges China face in reducing shipping emissions. By drawing on global emission reduction practices, we suggest policy measures for China to enhance its efforts and help the shipping industry move towards achieving netzero emissions. [ABSTRACT FROM AUTHOR]

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

This study evaluates the efficiency of China's seven emission trading schemes (ETS) piloted in 2013. We evaluate seven pilots' overall technical and scale efficiencies and temporal dynamics during 2014–2023. We use a bootstrap correction data envelopment analysis (bootstrap-DEA), which guarantees a more accurate efficiency estimation than the traditional DEA model. The results show that the average overall (pure technical) efficiency of the seven pilot markets increased from 0.612 (0.844) in 2014 to 0.898 (0.990) in 2023. Furthermore, we document that seven ETS pilots differ remarkably in efficiency and transaction price, whilst all have shortages. Specifically, the small-scale market transaction is the main constraint effect on the average scale efficiency of the ETS. This study provides concrete recommendations for policy makers to consummate institutional designs to improve ETS efficiency. [ABSTRACT FROM AUTHOR]

In this paper, a two-stage robust optimization approach is employed to address the variability in renewable energy output by accounting for the uncertainties associated with wind and solar energy. The model aims to achieve a balanced system that is both low-carbon and economically efficient while also being resilient to uncertainties. Initially, a regional integrated energy system model is developed, integrating electricity, gas, and heat. The variability of wind and photovoltaic power outputs is represented using a modifiable uncertainty set. A resilient optimal scheduling model is formulated in two stages, with the objective of minimizing costs under worst-case scenarios. This model is solved iteratively through a column and constraint generation approach. Additionally, the scheduling model incorporates horizontal time shifts and vertical complementary substitutions for carbon trading costs and demand-side loads to avoid excessive conservatism and to manage carbon emissions and energy trading in the regional integrated energy system (RIES). Results show that the two-stage robust optimization approach significantly enhances the system's resilience to risks and minimizes economic losses. The inclusion of carbon trading mechanisms and the demand response prevents the system from becoming overly robust, which could impede economic growth, while also reducing carbon emissions. The proposed method effectively achieves balanced optimal scheduling for a robust, economical, and low-carbon system. [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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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]

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]

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]

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 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]

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]

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]

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.

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]

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]

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]

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]

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]

In the European Union, greenhouse gas emissions statistics indicate only a slight decreasing trend over the last number of years in emissions from agricultural sources. Unless drastic action is taken in other sectors, the European Union's 2030 and subsequent climate targets are unlikely to be met without greater reductions made in agricultural emissions. The policy instruments aimed at reducing agricultural emissions that are currently in place have proven to be ineffective; therefore, there is a need to look for new approaches towards bringing agricultural emissions down faster and farther. One obvious new approach is to integrate agricultural emissions into the European Union Emissions Trading System, which, so far, has proven very successful in reducing greenhouse gas emissions in the energy and industrial sectors. Hardly any attention has been paid in the scholarly legal literature to the question of integrating agricultural GHG emissions into emission trading systems. This article seeks to fill this gap. This paper presents the concluding findings of a Dutch Research Council-funded research project that aimed to assess whether and under what conditions the European Union Emissions Trading System could play a role in compelling the agricultural sector to reduce its greenhouse gas emissions. We answered this question by looking at lessons learned from existing examples in the world of market-based approaches to integrating agriculture into emission reduction schemes. To do this, we performed an ex-post assessment of three of the very few examples that exist in the world of such schemes in Canada, California, and Australia, followed by an ex-ante assessment of the prospect of including agricultural emissions under the European Union Emissions Trading System based on the practical experiences of those examples. In the ex-ante study, we evaluated how such inclusion could work, either indirectly, through allowing on-farm offset programs to reward increased carbon sequestration, or directly, by requiring farmers and/or other actors in the agricultural sector to surrender allowances for their direct emissions. As lawyers, we focused mainly on the legal considerations of such a proposition. Having conducted both the ex-ante and ex-post assessments, we conclude that introducing stricter legal instruments of one form or another that will reduce agricultural greenhouse gas emissions and increase carbon removal on agricultural land seems necessary for the European Union if it is serious about achieving its commitments under the Paris Agreement and meeting its obligations under its own Climate Law. The project makes a novel contribution to the legal scholarship in concluding that the most viable starting point for such stricter legislation would be to include methane and nitrous oxide emissions from livestock keeping and synthetic fertilizer use, respectively, under the European Union Emissions Trading System. To start with, this could be conducted by obliging meat and dairy processors and synthetic fertilizer producers to surrender allowances for the on-farm emissions associated with their products. This could be complemented by introducing a voluntary, but still highly regulated, carbon credits scheme that could encourage and reward farmers for reducing their own emissions and for transitioning to net-zero, and overall, more climate-resilient and environmentally friendly farming practices. Such credits could be offered for sale on the private carbon market as well as to Member State governments and the European Commission (through, for example, the Common Agricultural Policy, State Aid schemes, or the Innovation Fund). [ABSTRACT FROM AUTHOR]

This paper assesses the feasibility of India achieving its stated objective of getting to net zero carbon emissions by 2070 and outlines a possible strategy for the next 10 years consistent with this goal. It recommends a combination of price-based measures and several sector-specific interventions. The ideal price-based measure would be a carbon tax. This may not be feasible for various reasons, but in its absence a well-designed emissions trading system, as described in the paper, could make a major contribution in reducing emissions. On sectoral interventions, the critical areas over the next 10 years would be (i) accelerated expansion of various forms of renewable energy capacity, which will require several policy changes, (ii) electrification of transport, and (iii) a shift from private to public transport in urban areas and from road to rail for freight. Action will also be necessary in other sectors such as industry, agriculture, and buildings, but a detailed strategy for these may take more time to put in place. Since responsibility for action in all these areas is spread across different ministries in the central government and, in many cases, state governments, evolving an internally consistent and cost-effective strategy will present a major challenge. There is a case for setting up a high-level commission chaired by the Prime Minister to approve a national strategy. The paper estimates that the additional investment needed to make this transition will be about 2 per cent of India's GDP by 2030, much of which will have to come from additional public and private savings. In this context, some form of carbon pricing would help generate additional revenue. [ABSTRACT FROM AUTHOR]

As carbon neutrality gains momentum, industries worldwide are navigating the challenges and opportunities posed by sustainability goals. This article delves into the strategies undertaken by airlines and maritime companies to achieve carbon neutrality by 2050 in the European Union (EU). The aim of the research is to explore how the aviation and maritime industries in Europe can effectively transition towards carbon neutrality by 2050, considering their similar technological challenges and opportunities. The objective of this research was to identify and compare currently utilized sustainability initiatives in aviation and maritime companies. The focus is on new insight from airline and maritime companies concentrating on their sustainability practices. Common hurdles, innovative solutions, and shared opportunities in the pursuit of environmental sustainability are explored. The selected research method was qualitative research, which was conducted with in-depth and semi-structured interviews and content analysis. Interviews were conducted with airline company and association representatives and maritime company, research, and education experts. The content analysis was based on sustainability reports and sustainability sections of annual reports. Key findings were synthesized into a theoretical framework and this research explores practical initiatives for a sustainable transformation process. The call to reduce carbon emissions has been initiated by the EU affecting the transportation sector, particularly aviation and maritime industries where the path to achieving carbon neutrality is constrained by significant technical limitations. Despite these challenges, both sectors share a unified objective according to EU climate targets. Both the aviation and maritime industries face challenges on the path to carbon neutrality. Airlines struggle with the limitations of current aviation technology, hindering the feasibility of large-scale technological advancements. Similarly, maritime companies confront regulatory complexities and infrastructure limitations in the adoption of alternative fuels and emission-reduction technologies since the commonly used tactics of reducing fuel consumption by optimizing speed, routes and scheduling are no longer adequate ways and the energy needs of the shipping industry cannot be met only with battery technology. These challenges offer opportunities for innovation and collaboration. Investments in research and development are driving advancements in electric and hydrogen aircraft, while the maritime industry is also trying to find hydrogen-based solutions for greener development, but the technologies are not widely available. This leads towards combining bio-oils and technological innovations related to the fleet. Case study 1 sheds light on airline sustainability in Europe, revealing strategies and initiatives that European airlines are currently utilizing in their sustainable transformation journey. Case study 2 explores different means of achieving carbon neutrality in the maritime industry, in particular the potential of common reed (Phragmites australis) as a carbon offset tool for reaching net zero. Both industries are making significant strides towards carbon neutrality through a combination of technological innovation, operational efficiencies, and strategic partnerships. Towards green horizons as transport industries converge on the path to carbon neutrality. [ABSTRACT FROM AUTHOR]

This study investigates the competitive issues of the newsvendor problem with product substitution under the carbon cap-and-trade system. Building on existing research, this paper introduces the carbon cap-and-trade system under uncertain market demand and considers that the original equipment manufacturer (OEM) can choose to procure raw materials from the contract manufacturer (CM), with both final products being substitutable. Furthermore, we explore the different substitution relationships between OEM and CM products under both pure competitive and co-opetitive modes. For this problem, decision models are developed for various scenarios, and optimal solutions satisfying given conditions are provided. We find that in one-way substitution, under pure competition, an increase in the OEM's (or CM's) green investment and substitution rate only leads to an increase in OEM's (or CM's) yields, while an increase in the OEM's (or CM's) green investment does not necessarily reduce CM's (or OEM's) yields. In the co-opetitive mode, an increase in the substitution rate and green investments of both manufacturers may lead to an increase in the yields of both manufacturers. Furthermore, an increase in carbon trading prices does not necessarily inhibit the manufacturer's yields. Moreover, we find that under the same competition mode, under certain conditions, two-way substitution between OEM and CM can bring better profits to both manufacturers and the entire supply chain. When the two modes are in the same substitution scenario, and the CM cannot substitute for the OEM, the optimal decisions and total supply chain profits of the two modes are equal. Finally, through numerical analysis, we find that neither mode is necessarily optimal when CM can substitute for OEM. Additionally, it is observed that when the same mode is in different substitution scenarios, total supply chain profits may be enhanced in the presence of product substitution. [ABSTRACT FROM AUTHOR]

The goal of this paper is to discern whether environmental policy stringency discourages inbound tourism in the G7 countries. The analysis is based on second-generation panel data methods in consort with the panel quantile regression approach. The findings document that environmental policy stringency plunges inbound tourism across all quantiles. Moreover, the impact of environmental policy stringency is relatively strong at higher quantiles compared to middle and lower quantiles, while the analysis reports that per capita global GDP escalates inbound tourism at all quantiles, whereas both inflation and the real effective exchange rate plunge inbound tourism. Finally, this study proposes certain policy recommendations to promote tourism. The results also survive certain robustness tests. They also imply that the countries under consideration need to adopt special measures to promote tourism, apply strict environmental control measures, while tourists should be given incentives to offset the detrimental impact of environmental regulations. Finally, the tourism-related firms should be given higher emissions permits through an emissions trading scheme, which lowers the cost of tourism, as well as tax exemptions on their imports. [ABSTRACT FROM AUTHOR]

Global maritime emissions, a 3% contributor to greenhouse gases, anticipate a surge of 90–130% by 2050. Regulatory challenges persist due to international governance gaps. Legislative strides, including the EU Emission Trading System, highlight global efforts. In the U.S., despite legislative commitment, consensus hurdles impede cross-regional carbon management. Prevailing top-down emissions estimation methods warrant scrutiny. This paper unveils U.S. maritime emissions intricacies, focusing on carbon accounting, transfer, and compensation for cargo and tanker vessels. Leveraging AIS data (2018–2022), an activity-based/bottom-up approach navigates emissions calculations, aiming to reshape understanding and foster strategic reductions. The study bridges gaps in U.S. maritime emission research, promising insights into transfer and compensation dynamics. By concentrating on high-impact vessel types, it contributes to emissions mitigation strategies, steering towards a sustainable U.S. maritime future. [ABSTRACT FROM AUTHOR]

Investigating the impact of carbon emissions trading policy and elucidating the underlying mechanisms are crucial for enhancing policy effectiveness and refining related systems. This study examines the impact of carbon emissions trading policy by constructing a difference-in-difference model utilizing unbalanced panel data from China's provinces spanning the period from 2005 to 2019. Additionally, a mediating effect model is employed to delve into the underlying mechanisms. The key findings are as follows: Firstly, the implementation of carbon emissions trading policy has a notable inhibitory impact on carbon emissions. Secondly, both the upgrading of industrial structure and the reduction of energy intensity play mediating roles in carbon emissions reduction. However, the development of clean energy industries does not exhibit a significant mediating effect. In conclusion, this study offers policy recommendations aimed at facilitating carbon reduction. These include enhancing the market-based trading mechanism for carbon emissions, optimizing and upgrading industrial structures, fostering innovation in green and low-carbon technologies, and promoting the development and utilization of clean energy. [ABSTRACT FROM AUTHOR]

Sustainably managing municipal solid waste (MSW) is a global challenge since the existing MSW processing procedure releases greenhouse gases and is economically unfriendly. An emissions trading scheme (ETS) is a market-based approach for policymakers to reduce sectoral carbon emissions while maintaining economic efficiency. Hitherto, no waste optimisation framework links ETS to carbon reduction and identifies the trade-offs between the cost of carbon credit trading and waste expenses, rendering doubt of ETS's effectiveness in the waste sector. In this study, an MSW-ETS framework is developed to analyse the potential impact of ETS on the MSW management system incorporating multiple waste types, disposal and treatment facilities, and waste-based products. A multi-objective optimisation model is integrated with the MSW-ETS framework to achieve mutual environmental and economic benefits. Malaysia is selected as an illustrative case study considering its unsustainable MSW disposal and the recent carbon trading plans announced by the government. Simulation of the carbon prices alters Malaysia's MSW management configuration at 363 MYR/tonne CO2-eq, providing insights on developing the carbon price floor for a Malaysian ETS. Six MSW management configurations under different scenarios that can achieve up to 160% GHG emissions reduction were also proposed. The MSW-ETS framework integrated with the multi-objective optimisation model could be replicated by other countries planning to phase the waste sector into ETS coverage. [ABSTRACT FROM AUTHOR]

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

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

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

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

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

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

The carbon–financial nexus helps firms evaluate susceptibility to carbon risk more effectively. This is the first research article to model the short- and long-run co-integrating association between European financial markets, the CBOE oil price volatility index (OVZ) and the European carbon emission trading system (EU-ETS) by using the daily returns from 1 October 2013 to 1 October 2023. We utilize co-integration test followed by the ARDL framework with an error correction mechanism (ECM). Moreover, we utilize the DCC-GARCH-t copula framework to estimate the hedge ratio and to select an optimal portfolio weight for carbon risk hedging. Overall, the findings suggested that EU-ETS (OVZ) has a consistent positive (negative) short-term influence on all the equity returns of Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, Spain and the stock indices of the whole Eurozone. However, in the long term, EU-ETS has a positive (negative) effect on the stock returns of France and the Eurozone (Belgium and Spain). Belgian and Spanish companies could implement long-term carbon reduction policies. Belgian and Spanish firms should focus on the utilization of green energy resources and the internalization of carbon emission-free mechanical processes as this may offer a safeguard against the additional pressure arising from escalating carbon prices. Finally, an optimal portfolio weight selection strategy based upon the DCC-GARCH-t copula approach aims for higher hedging effectiveness (HE) than the hedge ratio strategy when adopting short-term positions in Italian and Danish equity markets to reduce the risk of long-term EU-ETS volatility. [ABSTRACT FROM AUTHOR]

Under the overarching principle of sustainability, the reliance solely on expanding the landmass to meet the demand for high-quality economic growth is unsustainable. To address the need for harmonious ecological–economic development, this paper examines the influence of carbon emissions trading (CET) policies on the urban land green utilization efficiency (LGUE) from an environmental regulation perspective. Harnessing municipal panel data from 278 cities across China between 2011 and 2020, the study initially employs a super-efficient SBM model to estimate the urban LGUE. Further, a progressive difference-in-differences methodology is utilized to delve into CET's impact on the LGUE. The main results are as follows. (1) Through the visual analysis of the time–space evolution trend, the LGUE displays pronounced spatial agglomeration, with the LGUE values being higher in the central and western regions compared to the east, and in the south versus the north. Over time, it follows a "U-shaped" change pattern. (2) The CET policy exerts a statistically significant positive influence on the LGUE, although this effect is accompanied by a temporal lag. Following a number of approaches to validate the results, the impact remains significant. (3) Regarding the heterogenous effects, the CET policy appears to have a greater impact on resource-based cities and those in the eastern part of China relative to non-resource-based and central–western cities. This research offers empirical evidence and countermeasure recommendations for the further refinement of the CET policy to enhance the urban LGUE. [ABSTRACT FROM AUTHOR]

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

Emission trading is an efficient measure to combat climate change, which is one of the biggest threats to the international community and human health. The shipping industry has previously been considered an energy-saving industry but the growth rate of its emissions far exceeds that of other industries. On 10 May 2023, the EU enacted Regulation (EU) 2023/957, which officially included the shipping industry in the EU-ETS. Therefore, this may lead to investor-state disputes regarding emission trading in the marine industry due to the conflicts between the obligation to combat climate change and the obligation to protect investments of the host states. This has resulted in the breaching of International Investment Agreements. In this context, this study aimed to propose practical recommendations for global marine market practitioners to avoid the potential risks of disputes by reflecting on the existing practice regarding climate changerelated investor-state dispute resolutions and identifying the trends and problems of the current dispute resolution mechanism. These included inconsistency in the review standard, inconsistency in the review scope, and broad interpretation by the tribunal. Finally, this study proposed that by setting public purpose and exception clauses in the preambles of the International Investment Agreements and incorporating the specific obligations of the foreign investors and the regulatory power of the hosting states in the drafting stage, the potential risks for disputes regarding the new EU directive in the global marine industry could be effectively reduced. [ABSTRACT FROM AUTHOR]

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

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

This paper studies when and under what conditions the actions undertaken by the power plants involved in China's emission trading scheme (ETS) pilot became cost effective. Based on unique plant-level panel data and the difference-in-differences strategy, we identify that an insignificant initial reduction in cost efficiency occurred at the announcement stage for power plants in the pilot provinces; however, the cost efficiency of the pilot plants increased significantly following formal policy implementation. Additionally, the by-stage treatment effects differed across the pilot provinces due to localized market and non-market variations. Localized conditions of higher marketization, stricter policy enforcement, and lower carbon dependence enhanced this positive effect. The synthetic control results confirmed this variation in the policy effects. The carbon trading pilots resulted in improved efficiency in power plants in Shanghai, Guangdong, and Tianjin during the period 2013--2017, with an associated total cost saving of approximately 29.75 million RMB. To enhance the efficacy of the ETS policy, our findings suggest that the design of the policy should consider localized external factors. [ABSTRACT FROM AUTHOR]