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To accelerate achieving carbon neutrality, the promotion of low-carbon development in the manufacturing industry has been facilitated by the government's implementation of policies such as carbon taxation and carbon emissions trading. These measures have been put in place to reduce carbon emissions and enhance sustainability within the manufacturing sector. Remanufacturing is an important direction for the low-carbon transformation of enterprises, and improving remanufactured product quality is crucial to the sustainability of remanufacturing enterprises. To elucidate the influence of policies aimed at reducing carbon emissions on the quality of remanufactured products, we developed a game model involving three key players: the original equipment manufacturer (OEM), the remanufacturer (IR), and retailers. This model was constructed based on the heterogeneous consumer demand for both new and remanufactured products. The study delved into the effects of various governmental policies aimed at reducing carbon emissions on the quality-related decisions made by remanufacturing enterprises. Our primary focus was on the implementation of two specific policies: a high-level carbon taxation policy and a carbon trading policy characterized by elevated carbon pricing. These policies create a favorable environment for remanufacturers (IR) to enhance the quality of their products. The sales of remanufactured products are influenced by the purchasing preferences of consumers, and carbon reduction policies can be effective in reducing the total environmental impact of manufacturing. Carbon trading policy is most conducive to environmental protection and achieves a win–win situation for economic and environmental benefits for OEMs and IRs when the carbon tax per unit is compared with the carbon trading price. Hence, this situation is favorable for the sustainable growth of existing remanufacturing businesses. Consequently, the government's requirement for subsidies to enhance the quality of remanufactured products and boost the competitiveness of IRs in the market becomes less pronounced. [ABSTRACT FROM AUTHOR]

Excessive CO2 emissions and increased total costs of liner shipping are the two main problems affecting the environmental and economic benefits of liner companies under the European Union Emission Trading System (EU ETS). To address the upcoming EU ETS, we propose a carbon and cost accounting model for liner shipping that accurately calculates CO2 emissions and total cost of liner shipping. We conduct a case study that a containership operates on the liner route from the Far East to Northwest Europe. The results show that the sailing stage plays a pivotal role in CO2 emissions from liner shipping, accounting for 94.70% of CO2 emissions. Among four types of fuel, CO2 emissions from liner shipping using MGO is the largest, while CO2 emissions from liner shipping using methanol is the smallest. Methanol, as an alternative fuel, proves to be a better choice than LNG for CO2 control of liner shipping. The relationship between sailing speed and CO2 emissions follows a U-shaped curve for the selected containership. Notably, speed reduction is effective in carbon control of liner shipping only when the sailing speed exceeds 8.29 knots. Under the EU ETS, sailing speed is a key variable affecting the total cost of liner shipping. Speed reduction may not always be cost-effective. When keeping the total cost of liner shipping unchanged, sailing speed should be reduced as the EU allowance (EUA) price rises within a certain range. For the selected containership using MGO and HFO, the most economical sailing speed is 8.29 knots, corresponding to the increase in EUA price of 304.95% and 261.21%, respectively. If EUA price continues to rise, speed reduction will become ineffective in controlling the total cost of liner shipping. This model can enhance the environmental and economic benefits of liner companies, meet compliance requirements of the EU ETS, and provide a new perspective for carbon and cost control of liner shipping. [ABSTRACT FROM AUTHOR]

Environmental rights trading (ERT) is considered one of the crucial instruments for environmental governance in China, accelerating urban low-carbon sustainable development. This study utilized the Chinese Emissions Trading System (ETS), which has been implemented most widely, longest, and most typical, to represent ERT and examine its contribution to urban carbon emission reduction. Through a quasi-natural experiment perspective, urban panel data were collected from 2003 to 2019, and a time-varying difference-in-differences model and moderating models were developed. The study indicates that ERT can significantly reduce carbon emissions in cities, with robust results. In addition, the carbon reduction effect of ERT varies by city region, type, and size. This phenomenon is more obvious in central and western cities and resource-based cities. Finally, a framework to strengthen the carbon reduction effect of ERT was creatively constructed. The strengthening effects of green innovation, industrial structure, and clean energy are evident. This helps provide evidence for ERT layout and extension, especially in countries with high carbon reduction needs such as China. ERT affects not only policymakers but also a greener future for every organization and individual in the city. [ABSTRACT FROM AUTHOR]

China has the world's largest carbon market in terms of greenhouse gas emissions, but its system needs to be improved and enhanced. In comparison, the European carbon market stands as the most mature and well-developed carbon market globally. Carbon trading prices, serving as a barometer for the carbon market, are significantly influenced by investor behavior. Therefore, it is necessary to analyze the characteristics of carbon trading prices in both China and Europe, considering the impact of investor trading intervals and psychological expected returns. This study utilizes the Zipf method to characterize the dynamic behavior of carbon trading prices between China and Europe, conducting a comparative analysis. The results show distinctive asymmetry in the behavior of carbon trading prices in both markets. In the Chinese market, when τ < 277, the absolute deviation da(τ, ε) value gradually changes but consistently indicates a bullish trend. However, when τ ≥ 277, the da(τ, ε) value surges rapidly, reflecting a pronounced bullish sentiment among investors toward carbon trading prices in China. In the European market, within the sample period, regardless of variations in τ and ε, the da(τ, ε) value shows a linear upward trend, indicating a significant overall bullishness in prices. This suggests a higher probability of long-term bullishness in carbon trading prices. Investors' investment time scale (τ) and expected returns (ε) both influence the behavior of carbon trading prices in both China and Europe. Generally, a longer τ implies a higher probability of bullishness. As for ε, higher values lead to more extreme judgments on price movements, resulting in greater distortion in carbon trading prices. Short-term investors (τ<1 month) anticipate extreme fluctuations, exhibiting random behavior when ε < 0.15 and converging rapidly to extreme values of 1 or 0 when ε ≥ 0.15. Long-term investors (τ>quarter) are less biased, expressing a bullish outlook on both Chinese and European carbon prices. With increasing ε, the probability of bullishness either increases or decreases rapidly until reaching the saturation point. Once saturated, there is no further distortion in carbon price behavior. Furthermore, the Chinese carbon market displays a positive trend in carbon trading prices and a higher probability of long-term bullishness. For the European market, lower expected returns contribute to considerable carbon trading price fluctuations, exacerbating risk and uncertainty. The results of this study contribute to understanding the diverse trading behaviors in Chinese and European carbon markets and provide guidance for avoiding extreme volatility in carbon trading prices. [ABSTRACT FROM AUTHOR]

China enacted and implemented a carbon emissions trading pilot policy in 2011, and whether this carbon emissions trading scheme (ETS) can promote the development of green finance is crucial to realizing a win–win situation for both environmental and economic performance. Based on the panel data of 30 provinces in China from 2007 to 2019, this study constructs a multi-period double-difference model (DID) to explore the impact of carbon ETS on the development of green finance and uses the spatial Durbin model (SDM) to test whether there is a spatial spillover effect of the carbon ETS on the development of green finance. The results show that (a) the implementation of carbon ETS significantly promotes the development of green finance, and this conclusion still holds through a series of robustness tests; (b) the promotion effect of the carbon ETS on the development of green finance is more significant in eastern and western provinces, non-resource–based provinces, and provinces with a high level of openness to the outside world; (c) industrial structural upgrading and green innovation play pivotal roles in achieving the desired outcomes of carbon ETS; (d) carbon ETS have spatial spillover effects on the development of green finance, with the indirect effects being more significant than the direct effects. The findings of this study can serve as a valuable reference for expediting the establishment of a unified national carbon market and the development of a robust green financial system. This holds immense significance in effectively implementing the "dual-carbon" strategy. [ABSTRACT FROM AUTHOR]

Deepening the carbon market allocation reform is a strong support for carbon peaking and carbon neutrality. China has been piloting carbon trading in batches since 2013. However, there is little literature on whether and how carbon emission trading (CET) improves total factor carbon emission efficiency (TFCEE). To fill this gap, this study first calculates urban TFCEE using an extended Epsilon-based model and then designs a quasi-natural experiment based on causal inference. The staggered DID model is adopted to investigate the impact of CET pilot policies on urban TFCEE and its impact mechanism. Our results show that (1) the CET policy has a significant promoting effect on TFCEE in pilot cities, and this conclusion is reconfirmed by adopting robustness tests. (2) The mediating effect models are employed to confirm the mediating role of green technology innovation, industrial structure upgrading, and resource allocation efficiency in CET policy promoting regional TFCEE. (3) The heterogeneity test of CET policy depicts a considerable positive impact on TFCEE in cities with abundant resources. Eastern and developed cities are more likely to experience better carbon efficiency promotion through this policy than other cities. This study provides evidence for the important role of CET in promoting the development of a low-carbon economy and carbon neutrality. [ABSTRACT FROM AUTHOR]

This paper presents a numerical algorithm for environmental/economic load dispatch (EELD) with emissions constraints, which takes into account the emissions trading system's effect on electricity generation cost and is implemented using a Python computer program. The developed program is applied to a power system of six (6) fossil-fueled electricity generating units with NOx, SO2 and CO2 constraints and proved to be significantly beneficial not only for the environment but also for the power company and the consumers. The proposed algorithm uses multi-objective optimization and incorporates both fuel and emissions allowances costs. The schedule of generating units is calculated and the testing of all possible weighting factor combinations with resolution of 0.01 is carried out showing that the proposed algorithm is fast, cost effective and environmentally friendly. [ABSTRACT FROM AUTHOR]

Global crude steel production is expected to continue to increase in the coming decades to meet the demands of the growing world population. Currently, the dominant steelmaking technology worldwide is the conventional highly CO2-intensive Blast Furnace – Basic Oxygen Furnace production route (also known as the Linz-Donawitz process) using iron ore as raw material and coke as a reducing agent. As a result, large quantities of special gases that are rich in carbon monoxide (CO) are by-products of the various stages of the steelmaking process. Given the challenges associated with satellite-based estimates of carbon dioxide (CO2) emissions at the scale of emitting installations due to significant background levels, co-emitted CO may serve as a valuable indicator of the carbon footprint of steel plants. We show that regional CO release from steel production sites can be monitored from space using 5 years of measurements (2018–2022) from the TROPOspheric monitoring instrument (TROPOMI) on board the Sentinel-5 Precursor satellite benefiting from its relatively high spatial resolution and daily global coverage. We analyse all German steel plants with blast furnaces and basic oxygen furnaces and obtain associated CO emissions in the range of 50–400 kt yr-1 per site. A comparison with the respective CO2 emissions on the level of emitting installations available from emissions trading data of the European Union Emissions Trading System yields a linear relationship with a sector-specific CO/CO2 emission ratio for the analysed steelworks of 3.24 % [2.73–3.89; 1 σ ] suggesting the feasibility of using CO as a proxy for CO2 emissions from comparable steel production sites. [ABSTRACT FROM AUTHOR]

The low-carbon transition is a systemic economic and social change that will inevitably have an impact on many areas of the urban system. Has China's ongoing low-carbon transition impacted urban resilience (UR) systems while achieving urban energy saving and carbon emission reduction goals? This paper uses the implementation of the carbon emissions trading pilot policy (CETPP) as a "quasi-natural experiment." It evaluates the impact of the policy on UR using a difference-in-differences model based on the data of prefecture-level cities from 2008 to 2020. The study shows that pilot carbon trading policies favor UR, and the market mechanism of carbon emissions has a heterogeneous cause influence on UR. The impact of pilot carbon trading policies on UR varies according to the respective moderating effects of institutional factors, green technology innovation, industrial structure rationalization, and output effects. [ABSTRACT FROM AUTHOR]

The carbon emission trading pilot policy is an important initiative to achieve synergistic economic-environmental development. Based on the data of 268 cities in China from 2006 to 2020, this paper analyzes the impact of carbon emission trading pilot policy on urban innovation capacity by using a time-varying difference-in-difference model. The study shows that, first, the implementation of the CETP improves the innovation capacity of cities, and the robustness test confirms the above findings. Second, the effect of the policy on enhancing urban innovation capacity is heterogeneous between the type of innovation and city type: the promotion of innovation capacity is stronger for utility model patents and non-capital cities. Third, there is a positive spillover effect of the implementation of the CETP on the promotion effect of the urban innovation capacity, which can lead to the improvement of the innovation capacity of neighboring cities. This paper has some reference value for building a unified carbon emission trading market and promoting low-carbon economic development within China. [ABSTRACT FROM AUTHOR]

Collaborative reduction of carbon and air pollutants can more efficiently achieve green technological change, industrial low-carbon transition, and high-quality economic and social development. As a typical environmental policy in China, the pilot carbon Emission Trading Scheme (ETS) has obvious advantages in achieving the collaborative reduction of carbon and air pollutants. Therefore, an evaluation of China's pilot carbon ETS from the perspective of collaborative reduction of carbon and air pollutants is performed in this paper. Compared with previous studies, first, this study innovatively uses the coupled coordination degree (CCD) model to measure the collaborative reduction level of carbon and air pollutants under different scenarios based on the panel data of China's 30 provincial-level regions during 2004–2018. Second, this study uses the DID method to evaluate the impact of China's pilot carbon ETS on the collaborative reduction of carbon and air pollutants and conducts some robustness checks and regional heterogeneity regressions. Third, this study uses the synthetic control method (SCM) further to examine the policy outcomes of the pilot carbon ETS. Scenario analysis shows that attaching importance to reducing air pollution will improve the collaborative reduction effect of carbon and air pollutants. Furthermore, the implementation of China's pilot carbon ETS exerts an effect of roughly 24.7% on reducing carbon, roughly 10.1% on reducing air pollutants, and roughly 22.0% on the collaborative reduction of carbon and air pollutants, ceteris paribus. Regional heterogeneity analysis shows that the impacts of the pilot carbon ETS are significant in all regions, except that the impact on reducing air pollutants in the central region is not significant. In addition, results from SCM indicate that the impacts of the pilot carbon ETS on the collaborative reduction of carbon and air pollutants are significantly efficient in Beijing, Tianjin, Shanghai, Hubei, and Chongqing, while not much efficient in Guangdong and Fujian. The main policy implications include strengthening the top-level design of the ETS in the collaborative reduction of carbon and air pollutants, attaching importance to the governance of air pollution, making the regional governance more targeted, and improving energy efficiency. [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]

As part of its 'Fit for 55' package to realize a previously agreed upon 55% reduction in greenhouse gas emissions by 2030 (as compared to 1990 levels) along with a net-zero by 2050 target, the European Commission has proposed a Carbon Border Adjustment Mechanism (CBAM) that phases out free allowances by 2035. Although most initial commentary has focused on potential conflict with the EU's international trading partners from this renewed effort to price carbon while managing 'carbon leakage', policymakers may face greater challenges in their efforts to withdraw the highly visible benefit of free permits from domestic industry. This Perspective analyzes key policy dynamics relating to the imposition of burdens on powerful producer interests, and identifies where obstacles to policy change in the issue-area of carbon border adjustments (CBAs) are most likely to arise. Policy conflict over CBAM appears likely to follow unfamiliar geopolitical or sectoral lines. Internationally, several major trading partners have signaled a willingness to align their own emissions trading policies more closely with those of the EU and may even end up 'racing to the top' in harmonization efforts. Domestically, EU industries have expressed relatively undivided reservations about the CBAM proposal. Targeted domestic sectors will likely be privately assured that burdens are minimal, or compensated by new subsidies or side payments, despite potential violations of international trade law principles of non-discrimination and national treatment. Nonetheless, if CBAM simply disregards exporting countries' carbon prices, or effectively subsidizes domestic heavy industry by providing them with free allowances at the same time that importers are charged with the adjustment, then international conflict is more likely. [ABSTRACT FROM AUTHOR]

In this paper, the consequences of recognition of carbon emission allowances as financial instruments under the EU financial markets law including Directive 2014/65/EU of 15 May 2014 on markets in financial instruments (MiFID II) and the EU environmental law are analysed. We try to answer the question in what way the recognition of carbon emission allowances as financial instruments affected the functioning of the European Union Emission Trading Scheme (EU ETS). In particular, we ask whether it is beneficial or detrimental in terms of the environmental and economic effectiveness of the EU ETS. [ABSTRACT FROM AUTHOR]

Regime-switching process reflects mechanistic transition states and forecasts extreme carbon price volatility; this article tends to investigate the regional regime-switching behaviors of China's carbon price using the Markov switching model. Our empirical results demonstrate that carbon prices in Beijing, Shanghai, Shenzhen, Guangdong, and Hubei exhibit significant regime-switching for the period from January 2, 2014 to April 30, 2022; our results are similar with the regime-switching behavior of European Union's carbon and energy price. Shenzhen's carbon prices generate greater market fluctuations than those of Beijing, Shanghai, Guangdong, and Hubei. The switching probabilities of carbon prices from low-variance to high-variance state in Shanghai and Beijing are greater than those of Guangdong, Shenzhen, and Hubei. Annual compulsory allowance submissions, allowances allocation corrections, phase-switching between regional and nationwide ETS pilots, and sophisticated energy markets are the main driving factors of regime-switching behavior in China's carbon prices. [ABSTRACT FROM AUTHOR]

Carbon emissions trading constitutes an important instrument in reaching global climate goals and enhancing energy transition. This brief provides an illustration of the EU ETS and Voluntary Carbon Markets (VCMs), focusing on their main features and some of their current challenges from a regulatory point of view. Issues pertaining to systems' linkage and carbon leakage in the framework of the EU ETS as well as ensuring the overall project quality in the framework of VCMs have to be successfully faced for such schemes to be effective. The special issues of the interaction between the EU ETS and VCM schemes and their impact on the energy sector are ultimately highlighted. [ABSTRACT FROM AUTHOR]

The article examines the relationship between international trade and CO2 emissions, focusing on the case of the EU. The authors consider CO2 emissions as a determinant of trade flows. The study concludes that EU exports and imports tend to increase with partner countries whose CO2 emissions are rising, highlighting the importance of this relationship for the expected effects of the Carbon Border Adjustment Mechanism (CBAM).

In 2013, the European Union's Emission Trading Scheme (EU‐ETS) entered Phase III. The majority of emission permits in Phase III are auctioned instead of being allocated for free as in Phases I and II. Using a difference‐in‐differences method, we show that this change has led to an increase in the financial distress risk of the EU‐ETS‐regulated firms when compared to unregulated firms, suggesting that the EU‐ETS imposes a significant financial burden on regulated firms. This result is robust to an array of validation tests, alleviating concerns that it is driven by unobserved factors. In additional analyses we show that the increase in distress risk of regulated firms during Phase III can be explained by, (i) an additional climate regulation cost to purchase pollution permits and (ii) a low average environmental score that possibly (via high sustainability risk) lowers investors expectations regarding firms' performance. Our findings also show that the distress risk increase is higher for regulated firms operating within countries with lower control of corruption, government effectiveness, political stability, regulatory quality, rule of law, and voice accountability before the EU‐ETS implementation. [ABSTRACT FROM AUTHOR]

Carbon market construction is a crucial tool in meeting sustainable development goals (SDGs). Based on data from prefecture-level cities in Fujian Province, China, between 2011 and 2020, the SBM model is employed to determine the carbon emission efficiency for each city. Additionally, the event analysis method is deployed to evaluate the influence of the carbon market construction on carbon emission efficiency in Fujian Province, and project carbon emission efficiencies for different scenarios. The findings reveal that: (1) The construction of the carbon market has led to an improvement in carbon emission efficiency in Fujian Province, the duration of this effect needs to be strengthened. (2) No significant difference has been observed in carbon emission efficiency between coastal and inland cities due to the carbon market construction. It is feasible to investigate the formation of a carbon market with distinct local features, ultimately achieving SDGs. [ABSTRACT FROM AUTHOR]

This research examines the market reaction to the publication of firm-specific environmental news for participating firms in the European Union's Emissions Trading System (EU ETS) during its third phase. Our sample of 123 publicly listed participating firms, located in 21 European countries, accounted for 45.43% of emissions in the EU ETS in 2020. Using an event study methodology during the period 2014–2021, we find that positive news was rewarded with increased returns for publication events related to the latter years of the phase (2017–2020) while it had an insignificant impact for earlier year (2013–2016). This indicates that the EU ETS is finally fulfilling its intended function of incentivising participating firms to reduce their emissions. Our study highlights the contextually contingent nature of the relationship between environmental and financial performance. [ABSTRACT FROM AUTHOR]

The number of cars is increasing every year and the environmental aspects of transport are becoming a hot topic. The spatial and temporal patterns of motor vehicle carbon monoxide (CO) emissions are still unclear due to the unbalanced economic development and heterogeneous geographic conditions of China. With the objective of realizing a reduction in motor vehicle CO emissions, his study explores the transport carbon emission reduction pathways of China from motor vehicle CO emission. Firstly, the entropy method is adopted to comprehensively evaluate the CO emissions from motor vehicles in each province; secondly, the development of a Geographically and Temporally Weighted Regression (GTWR) model facilitates the examination of the spatiotemporal dynamics pertaining to the influencing factors of motor vehicle CO emissions within each province.; finally, the characteristics of motor vehicle CO emissions in ETS pilot areas and non-ETS pilot areas are compared. The results show that: (1) After the completion of the six ETS pilot areas in 2011, the CO emission from motor vehicles is reduced by 18% compared with 2010.(2)The entropy method shows that the largest CO emissions from motor vehicles are from Beijing, Shanghai, Guangdong and other provinces with high economic levels.(3) The results of the GTWR model show that the positive effects of economic level, population size, road mileage intensity and motor vehicle intensity on motor vehicle CO emissions are decreasing year by year. The negative effect of metro line intensity on CO emission decreases year by year. This study can help decision makers to identify the high emission areas, understand the influencing factors, and formulate emission reduction measures to achieve the purpose of carbon emission reduction in transport. [ABSTRACT FROM AUTHOR]

In the context of trade protectionism impacting economic and environmental sustainability, a more comprehensive understanding of the impact of trade on carbon emissions is critical to economic and environmental sustainability. Existing literature mainly explores the impact of trade on carbon emissions from the perspective of trade openness, neglecting the perspectives of trade diversification and trade direction. This study aims to fill this gap by investigating the impact of trade openness (measured by trade volume, import, and export), and trade diversification (measured by import diversification and export diversification) on carbon emissions based on data from OECD and G20 countries between 1997 and 2019. The study further explores the heterogeneity, asymmetry, and mediation effects. The results demonstrate that (i) the impact of trade on carbon emissions is heterogeneous, with trade openness leads to an increase in carbon emissions, while trade diversification leads to a reduction in carbon emissions. Moreover, import diversification has the strongest effect on reducing carbon emissions. (ii) The impact of trade openness on carbon emissions is asymmetry. Trade openness increases carbon emissions at 10%–50% quantile levels and reduces carbon emissions at 80%–90% quantile levels. However, the impact of trade diversification on carbon emissions is consistent. (iii) The impact of trade openness on carbon emissions is mediated by technology effect and structural effect. On one hand, trade openness leads to an increase in carbon emissions by the industrial structure. On the other hand, it contributes to the reduction of carbon emissions by technological progress. These findings could serve to better understand the complexity of free trade's impact on economic and environmental sustainability. [ABSTRACT FROM AUTHOR]

The upscaling of novel carbon dioxide removal, such as bioenergy carbon capture and storage (BECCS), to gigatonne scales is an urgent priority if global warming is to be limited to well below 2°C. But political, economic, social, technological, environmental and regulatory uncertainty permeates BECCS projects and deters investors. To address this, we explore options to improve the robustness of BECCS deployment strategies in the face of multi-dimensional uncertainties. We apply Dynamic Adaptive Planning (DAP) through expert interviews and Robust Decision Making (RDM) through exploratory modelling, two decision making under deep uncertainty methods, to the case of Stockholm Exergi, an early mover aiming to deploy BECCS at a combined heat and power plant in the capital of Sweden. The main contributions of the research are to 1) illustrate how a quantification of robustness against uncertainty can support an investment decision to deploy BECCS 2) comprehensively cover uncertain vulnerabilities and opportunities of deploying BECCS, and 3) identify critical scenarios and adaptations to manage these uncertainties. The main conclusions are: investing in BECCS is relatively robust if assessing performance across many scenarios and if comparing the worst-cases of either investing, or not doing so. Not investing could miss out on up to € 3.8 billion in terms of net present value. The critical uncertainties of BECCS can be managed by strengthening biomass sustainability strategies and by gaining support for negative emission trading regulation on carbon markets, e.g., voluntary or Paris Agreement Article 6. Even in vulnerable scenarios of average electricity prices above 82 €/MWh, if trading regulation is implemented before 2030 and if negative emission prices exceed 151 €/CO2, investing in BECCS performs better than not doing so in 96% of cases. We suggest that facility-level parameters and cost-reductions are of little importance for BECCS investments and upscaling. It is regulatory certainty of operating revenues, e.g., through negative emission markets, that needs to be provided by policymakers. [ABSTRACT FROM AUTHOR]

In April 2023, the EU institutions finally adopted an innovative international climate policy instrument: the Carbon Border Adjustment Mechanism (CBAM). As the long and winding road to a CBAM has included significant EU‐internal and EU‐external opposition, a “shifting Multi‐Level Reinforcement” (MLR) perspective is helpful for understanding this development. When France assumed initial leadership from 2007, skepticism to the WTO, generous amounts of free allowances, combined with a low carbon price, provided a strong oppositional force. Then, influential elements in the European Parliament called for a carbon border tax, which was subsequently included as a central ingredient in the “Fit for 55” package launched by the Commission, In the decisionmaking process, leadership involving all the previous forces resulted in an institutional reinforcement dynamic strong enough to counter EU‐internal as well as EU‐external challenges and ‘turbulence’. This case shows the relevance of an updated MLR perspective for understanding also other EU processes, taking into account the growing role of both policy packages and trilogues as decisionmaking tools, indicating a possible strengthened role for the Commission also in the decisionmaking phase. [ABSTRACT FROM AUTHOR]

The analysis of energy use not only sheds light on lightening the increasing pressures from energy systems but also improves the flexibility and reliability of power systems. As the highest carbon emission country in the world, detailed evaluation of China's carbon emission trading scheme (ETS) on the energy use is sensitive to energy sectors and highlights the importance of energy utilization in current society. Yet, because of the presence of a possible discontinuity caused by policy implementation, this study uses synthetic control method (SCM) to confirm whether there is a cutoff for energy use after the ETS implementation. Furthermore, threshold regression model is integrated to estimate the causal relationship when there is a discontinuity. SCM is used to verify which has caused the discontinuity for threshold regression model, and threshold regression model is used to quantify and estimate the causal relationship which SCM cannot evaluate. Through the data analysis, it is found that ETS makes effect on energy use deduction in most of pilot ETS regions while the effect is affected by economic development, population, industry, and research. Some suggestions on how to reduce energy use conclude this paper. [ABSTRACT FROM AUTHOR]

Green and low carbon transition is a broad and profound economic and social systematic change. Green innovation is a critical way to promote energy saving and emission reduction. Has China continuously promoted a carbon emission trading policy to significantly promote green innovation cooperation? Taking the implementation of the carbon emission trading pilot policy as a "quasi-natural experiment," this study answers this question by exploring the impact of the policy on green innovation cooperation. Based on data on 274 cities from 2008 to 2020, the multi-time difference-in-differences model is used to evaluate the impact of the policy on green innovation cooperation. The results reveal that the carbon emission trading pilot policy significantly improved inter- and intra-city green innovation cooperation through the upgrading effect of industrial structure and the coverage effect of digital finance compared with the non-pilot cities at the city level. In addition, there are significant differences in the policy effects among cities with different degrees of openness to the outside world and command-and-control environmental regulation. [ABSTRACT FROM AUTHOR]

The carbon emissions trading system (CETS) is a helpful policy instrument for separating carbon emissions from economic expansion, and it significantly impacts energy efficiency (EE). This study uses 30 Chinese provinces from 2007 to 2020 as its research samples, and classifies energy efficiency into single-factor energy efficiency (SFE) and total-factor energy efficiency (TFE), using the difference-in-differences model to examine the effect and mechanism of the CETS on EE. As an additional tool to assess the efficacy of the CETS, the corresponding evolution of the rebound effect of energy-related carbon emissions (RECE) is also calculated. This study shows that the CETS can significantly improve EE in China's pilot provinces. The influence mechanism indicates that the effect of the CETS on EE is influenced by the level of government governance, green innovation, and industrial structure optimization. Further study finds that after the CETS was carried out, the RECE in pilot provinces was higher than that in non-pilot provinces, and 31.4% of carbon emissions reduced by EE improvement rebounded. Therefore, the CETS has yet to realize its full carbon reduction potential. The study offers specific policy proposals for the enhancement of China's CETS in light of the aforementioned findings. [ABSTRACT FROM AUTHOR]

Several EU countries have targets for the reduction of CO2e emissions that go beyond the target set by the EU. We study what would be the optimal carbon tax policy in such EU frontrunner countries, focusing on two questions: 1) How should national climate policy be coordinated with the European Emissions Trading System (ETS), and 2) How should an EU frontrunner country address the risk of carbon leakage? We show that these issues are closely linked and that the answers to the two questions depend on the following factors: i) The shadow cost assigned to carbon leakage, ii) The rates of carbon leakage in the ETS and non-ETS sectors, and iii) The price of ETS emission allowances relative to the domestic marginal abatement cost of attaining the desired reduction of domestic emissions. Our analysis shows that it is preferable for an EU frontrunner country to implement a national ETS sector carbon tax that results in a higher total carbon price in the national ETS sector compared to the national non-ETS sector. We illustrate how our theoretical model can be combined with a modified version of the GTAP-E general equilibrium model of the world economy to estimate the parameters of the optimal national carbon tax scheme in an EU frontrunner country, using Denmark as an example. We find that the ETS sector should pay a total carbon price that is between 33 and 78 percent above that of the rest of the economy depending on the aversion to carbon leakage. Key policy insights It is generally optimal for an EU frontrunner country – one with a domestic emission target beyond that set by the EU – to implement a national ETS sector tax. The total national carbon price should be higher in the ETS sector compared to the non-ETS sector. Data for Denmark indicate that the total national ETS sector carbon price should be at least 33 percent higher than that of the national non-ETS sector. [ABSTRACT FROM AUTHOR]

This research develops an optimization model of supplier selection and order allocation with transportation mode alternatives under carbon cap and trade policy. The objective function of the model is to maximize the manufacturer's total profit. Total revenue comes from the selling of both good items and imperfect items. Total cost in this research consists of purchase cost, transportation costs from supplier to manufacturer and from manufacturer to retailer, transaction cost, holding cost, inspection cost and carbon emission cost. Transaction cost is applied for each selected supplier in each period without considering the type and quantity of the item. This research considers a supply chain with multiproducts, multiperiods, multisuppliers and multiretailers. We assumed that the manufacturer inspects all the products come from the suppliers and some of the products are defective. Those defect items are sold in a lower price at a secondary market. This research has a contribution in the inclusions of carbon emission and defect product in the model. Hence, the model is in line with the sustainability issue and closer to the real condition in terms of imperfect manufacturing. A mixed integer linier programming (MILP) model is developed in this research, and the model was solved using Lingo 15.0 software with branch and bound method. The result of sensitivity analysis shows that the objective function is sensitive to the changes of demand, selling price of good item, transportation cost, purchasing cost and holding cost. While the decision variables of order allocation and the number of transportation mode are sensitive to the changes of demand, transportation cost and purchasing cost. [ABSTRACT FROM AUTHOR]

Reducing greenhouse gas emissions is necessary to meet climate goals, but these emissions are not the only harmful bi‐products of fossil‐fuel combustion. This paper shows how a regional cap‐and‐trade program designed to regulate CO2 emissions affects the release of federally‐regulated toxins in the Toxics Release Inventory. We find that the program reduces toxic releases from coal‐fired electric plants by 78%, and that harmful metal releases (e.g., lead, mercury) have fallen by 54%. There is no evidence of spillovers into non‐adopting areas. This unintended beneficial effect of the carbon dioxide cap‐and‐trade policy provides compelling evidence of the co‐abatement of harmful compounds alongside greenhouse gas emissions. [ABSTRACT FROM AUTHOR]

This article proposes a two-stage stochastic profit-maximizing hub location problem (HLP) with uncertain demand. Additionally, the model incorporates several carbon regulations, such as carbon tax policy (CTP), carbon cap-and-trade policy (CCTP), carbon cap policy (CCP), and carbon offset policy (COP). In the proposed models, an enhanced sample average approximation (ESAA) method was used to obtain a suitable number of scenarios. To cluster similar samples, k-means clustering and self-organizing map (SOM) clustering algorithms were embedded in the ESAA. The L-shaped algorithm was employed to solve the model inside the ESAA method more efficiently. The proposed models were analyzed using the well-known Australian Post (AP) data set. Computational experiments showed that all of the carbon regulations could reduce overall carbon emissions. Among carbon policies, CCTP could achieve better economic results for the transportation sector. The results also demonstrated that the SOM clustering algorithm within the ESAA method was superior to both k-means inside ESAA and classical SAA algorithms according to the %gap and standard deviation measures. In addition, the results showed that the L-shaped algorithm performed better than the commercial solver in large-scale instances. [ABSTRACT FROM AUTHOR]

Closed-loop supply chain is an important path to realize the sustainable development of supply chain, and cap-and-trade and carbon tax policies further promote closed-loop supply chain to invest in low-carbon technologies. This paper combines Economic Production Quantity with Economic Order Quantity models and designs multiple carbon policies. Abatement rate and collection rate are the key variables used to explore the mechanism of the interaction between carbon tax and cap-and-trade, inventory dynamics of closed-loop supply chain and impact of multiple carbon policies on closed-loop supply chain. Construct and analyze benchmark model, investment model under multiple carbon policies, remanufacturing model under multiple carbon policies and mixed strategies model under multiple carbon policies, and the results show that there is a non-linear complementary relationship between carbon price and carbon tax, and both remanufacturing and low-carbon investment can optimize cost and carbon emissions when carbon price is distributed at a certain interval. Furthermore, mixed strategies combining remanufacturing and low-carbon investment can optimize cost and carbon emissions simultaneously. The main contribution of this paper is to build a low-carbon circular system, which can help balance cost and carbon emissions of closed-loop supply chain. [ABSTRACT FROM AUTHOR]

The information coordination of fresh agricultural products supply chain is conducive to improving the overall efficiency and competitiveness of the supply chain, and reducing carbon emissions. Under the carbon cap-and-trade policy, this paper constructed an evolutionary game model of supply chain information collaboration involving a fresh agricultural products supplier, a cold chain logistics service provider and a fresh agricultural products retailer, explored the selection of information collaboration strategies of each subject, and simulated it with system dynamics. The results show that: The stability strategy of the game system is related to the initial willingness of each subject. When any two parties participate in information collaboration, the other party will also choose to participate in collaboration. In addition, the choice of information collaboration strategy of the subject is also related to the collaborative planning ability, collaborative strategy formulation ability, consumers' preference, the initial cost of each subject, revenue sharing and cost sharing mechanism, government subsidies, government regulation and carbon cap-and-trade policy. It is worth noting that the collaborative planning capability is more conducive to promoting the subject to choose information collaborative strategy than the collaborative strategy formulation capability; the carbon trading price has a greater impact on the subject's participation in collaboration, while the total amount of carbon quota has no impact on the choice of the subject's information collaboration strategy. Furthermore, based on the research results, the corresponding management suggestions are put forward from the two aspects of the government and the participants. [ABSTRACT FROM AUTHOR]

The European Union (EU) began developing climate policy in the 1990s. Since then, it has built up a broad portfolio of mitigation policy measures and governance tools, including legally binding targets to reduce greenhouse gas (GHG) emissions, and policy measures addressing emissions trading, renewable energy, energy efficiency, and more. In 2019, the European Commission—the EU's executive arm—published the European Green Deal (EGD), an overarching policy framework to achieve the goal of climate neutrality by 2050. The EGD aims to push EU climate policy and governance far beyond incremental policy development. In this article, we ask: does the EGD represent a break from past patterns of EU climate governance? We argue that it maintains several past patterns, but nevertheless breaks from other established policy and governance trends. We review insights from politicization and new institutionalist theoretical lenses to help us understand these findings. We reveal certain tensions and challenges inherent in the EU's climate governance approach—around speed and coherence, effectiveness and just transition—that highlight future research needs, and raise questions about the EU's ability to implement its climate policy goals. This article is categorized under:Policy and Governance > Multilevel and Transnational Climate Change Governance [ABSTRACT FROM AUTHOR]

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This paper estimates the influences of different industries on the carbon prices and selects the industries with high market power in the carbon market. To realize price discovery in the carbon market and improve the market efficiency, we suggest that industries with higher market power should be included in the market prior to other industries. Using the LASSO regression to analyze the data from the pilot markets of China's ETS and related industrial product outputs, we find that among all related industries, the petrochemical and chemical industries affect the carbon price the most and hence should be included in China's ETS with priority. The power generation industry, though regarded as the major entity of emission control, imposes weaker influences on the carbon price. Industries that may be incorporated in China's ETS later include the transportation equipment manufacturing and the mining and metal industries. [ABSTRACT FROM AUTHOR]

This study examines whether and how carbon trading policy impacts the financialization of non-financial firms, using China emission trading scheme as a quasi-natural experiment. We find that the carbon trading policy exerts a substantial and enduring inhibitory effect on corporate financialization. Our findings are robust to possible result bias and more precise control group. Additionally, we explore potential channels through which carbon trading policy can affect financialization, and find that it curbs financialization by reducing financing constraints. Finally, we demonstrate that the relationship between carbon trading policy and financialization of non-financial companies is moderated by company's ownership, region, and industry competition. [ABSTRACT FROM AUTHOR]

Carbon emission trading policies play a key role in reducing carbon emissions through market-based mechanisms. In the context of China's carbon neutrality goals and carbon peaking targets, it is important to predict and evaluate the effectiveness of such policies. The combined impact of carbon trading policies on carbon emission reduction and economic output has not been well investigated in previous studies. In this study, the impact of carbon emission trading policies on regional carbon emission performance was assessed through mechanism analysis and empirical tests. The mechanism analysis showed that carbon emission intensity reduction relied on three mediating effects: technological innovation incentives, industrial structure optimization, and energy substitution. For the empirical test, the multi-time difference-in-differences (DID) method was adopted to study the impact using panel data from 30 provinces in China between 2005 and 2019. Moreover, the specific impact mechanism was further tested using mediating effects. The results showed that China's carbon trading policy has significantly affected the carbon emission performance of the pilot regions, and factors such as GDP per capita, urbanization level, and capital-labor ratio have notably contributed to the reduction of carbon emission intensity. The proportions of the three mediating effects in the total effect were estimated to be 60.98%, 23.17%, and 10.14%, respectively. This study provides an empirical approach to the study of the impact of carbon trading policy on carbon emission reduction and economic output and can serve as a reference for addressing climate change and alleviating conflicts between the environment and economic growth in similar regions. [ABSTRACT FROM AUTHOR]

Establishing an efficient carbon emissions trading market is a priority to achieve the goal of carbon peaking and carbon neutrality. In the context of income inequality and emissions inequality, this study examined the efficiency of carbon trading in China from the perspective of resident income. First, this paper used the Cobb–Douglas (C-D) production function to incorporate carbon intensity into the production network model and obtained the expression of household income by solving the Walras equilibrium. Secondly, this study put forward a theory that Carbon trading affects the income level of individuals. Finally, in order to test the theory, the study used the differences-in-differences (DID) method, provincial panel data from 2005 to 2019, and the quasi-natural experiment of China's carbon emissions trading pilot. The results indicated that this policy could reduce the per capita disposable income level. Further heterogeneity research showed that although the emission reduction effect was significant, the pilot policy failed to save emission reduction costs and improve residents' welfare. The low efficiency of the carbon market was mainly attributed to the insufficient liquidity of the pilot carbon market. Therefore, it not only failed to achieve efficiency but also increased unnecessary costs, which had a negative impact on income. In addition, the consumption patterns of residents and the industrial-oriented economic structure exacerbated the decline in income. [ABSTRACT FROM AUTHOR]

The low‐carbon development of integrated energy systems is achieved via the sharing of multiple energy interactions by park‐level IES (PIES).However, coordinating profit distribution conflicts among complex interactive stakeholders in stochastic scenarios is challenging. Accordingly, this study proposes a novel tri‐layer framework that aggregates different game mechanisms to investigate the interactions between PIESs and coupled energy markets. First, a linkage trading mechanism is proposed by integrating carbon emissions trading and green certificate trading, which establishes a coupled electricity‐carbon‐green certificate market. Consequently, a park aggregation operator acts as an intermediary between PIESs and the coupled market, setting upper‐level purchase and sale prices to guide unit generation in each PIES using the Stackelberg game theory. Subsequently, the Nash game theory is applied to realize cooperative bargaining among PIESs for a fair revenue distribution. Further, the impact of uncertain environments is considered by utilizing stochastic scenario methods and the conditional value‐at‐risk theory. To protect the privacy of each participating agent while improving the convergence speed, a differential evolutionary method is combined with analysis target cascading to solve the framework. Finally, the proposed scheduling method is validated by utilizing a typical case to optimize conflicting PIES interests in multiple scenarios and realize decarbonisation. [ABSTRACT FROM AUTHOR]

Based on the data of listed companies in China's iron and steel industry from 2007 to 2020, the article investigates the impact mechanism and the path of action of China's carbon emissions trading pilot on the green total factor productivity of iron and steel enterprises by constructing a multi-period difference-in-difference model difference-in-differences. The study finds that: 1) China's iron and steel enterprises significantly improve their green total factor productivity driven by the carbon trading pilot, and the findings pass the corresponding robustness tests. 2) the mechanism analysis indicates that the carbon trading pilot promotes the green total factor productivity of iron and steel enterprises by forcing the technological progress of enterprises. 3) The heterogeneity analysis shows that the positive effect is more significant for large iron and steel enterprises with high social responsibility rating and high local government competition intensity, but not for small enterprises with low social responsibility rating and low local government competition intensity. 4) the dynamic effect shows that there is a certain lag in the promotion effect of the carbon emission trading pilot on the green total factor productivity of iron and steel enterprises, but its long-term effect is more obvious. This paper puts forward corresponding suggestions for accelerating the construction of a national unified green and low-carbon market system and actively promoting the deepening of the "dual-carbon" goal. [ABSTRACT FROM AUTHOR]

The impact of trade openness on environment is of increasing concern to environmental practitioners, industrialists, and researchers. Unlike previous studies that only focus on the impact of trade openness on carbon dioxide (CO2) emissions, this study explores the relationship between trade openness and carbon productivity. To this end, we construct a dynamic nonlinear panel model using a panel sample of 76 countries for the period 1990–2021. Furthermore, we conduct a mediation effect analysis to examine the underlying impact mechanisms between trade openness and carbon productivity. Finally, by dividing the total sample into four subsamples, we analyse possible regional heterogeneity in trade openness and carbon productivity relationship. The empirical results show that: (1) Trade openness has a significant impact on carbon productivity, with a U-shaped relationship between the two variables. In other words, carbon productivity first declines and then rises after a certain threshold level of trade openness is reached. (2) Energy intensity and energy consumption structure are two important mediators between trade openness and carbon productivity. (3) The impact of trade openness on carbon productivity is heterogeneous across countries. Based on the main findings, we propose several policy implications to improve trade quality as well as global carbon productivity. [ABSTRACT FROM AUTHOR]

Achieving sustainable development necessitates proactive measures to mitigate the economy's negative impact on environmental standards. A new empirical association between renewable energy patent innovation and net international trade on carbon emissions in ASEAN countries from 1990 to 2021 is presented, along with its significance. Using present panel data techniques, this study investigates the connections between these factors. Second-generation cointegration and unit root tests, as well as a novel method of Moments Quantile Regression, are used in the econometric procedure. Compared to standard quantile regression, this method is more resistant to outliers and provides an asymmetric relationship between the variables. The findings show that trade increases carbon emissions in countries with medium to high emissions, that patent innovation contributes to increasing emissions, and that renewable energy mitigates carbon emissions in countries with low to medium emerging economies. Our results are consistent with other specifications, including quantile regression canay (Canay 2011), fully modified, dynamic, and fixed effect regressions, proving the EKC hypothesis. These countries need to prioritize greener products and adopt advanced manufacturing technologies to reduce carbon emissions from consumption. However, as prosperity increases, it also leads to higher consumption-based carbon emissions, worsening ecological damage in the region. Implementing policies like trade synchronization and increasing investment in patent innovations are proposed in this study to lower the current level of carbon emissions. [ABSTRACT FROM AUTHOR]

Maximizing socioeconomic and environmental benefits with minimal investment in urban land resources is a key concern for sustainable urban development. The emission trading system is an important strategy of the Chinese government to control environmental pollution and promote green development, but whether it improves urban land green use efficiency is still unclear. Combining the concept of green development with urban land use efficiency, this paper uses the super-efficiency slack-based measure (SBM) model with undesirable outputs to measure the land green use efficiency of 261 prefecture-level cities in China from 2003 to 2017. In addition, the propensity score matching difference-in-differences (PSM-DID) method and the mediating effect model were used to test the impact of the China's emission trading system on urban land green use efficiency and behind the mechanism. According to the findings, China's emission trading system has significantly improved urban land green use efficiency, compared with that in nonpilot cities, urban land green use efficiency in pilot cities has increased by 10.40%. Moreover, the policy effect of the emission trading system is more significant in resource-based cities and cities with a high intensity of environmental regulations. Further mechanism analysis reveals that green technology innovation and industrial structure upgrading are effective transmission mechanisms for China's emissions trading policy to improve urban land green use efficiency. The findings provide policy implications for promoting the sustainable use of urban land resources and advancing the coordinated development of urban socioeconomic and ecological environments. [ABSTRACT FROM AUTHOR]

The consensus mechanism is a critical technology in the power trading blockchain distributed power trading platforms, which are gradually being applied and promoted to achieve the "dual carbon" goal. Green-certificate trading and carbon emission trading systems help mobilize power generation enterprises to increase the generation of and investment in renewable energy, thereby becoming important factors in distributed power trading. Therefore, they should also be considered as factors in the consensus mechanism. This article first evaluates the green-certificate weight based on whether nodes possess green certificates, evaluates the carbon emission weight based on the carbon emission settlement of nodes in the previous cycle, and constructs a mechanism to evaluate a node's weight. An improved Raft consensus algorithm based on node weight is then proposed. Nodes with greater weights are more likely to become leading nodes, promoting active compliance and green consumption by nodes and reducing carbon emissions. A simulation shows that the improved Raft consensus mechanism enhances the reliability of leading nodes, improves the efficiency of the distributed power transaction, increases the generation of renewable energy, and encourages the consumption of new energy. [ABSTRACT FROM AUTHOR]

Although blockchain technology has received a significant amount of cutting-edge research on constructing a novel carbon trade market in theory, there is little research on using blockchain in carbon emission trading schemes (ETS). This study intends to address existing gaps in the literature by creating and simulating an ETS system based on blockchain technology. Using the ciphertext-policy attributed-based encryption algorithm and the Fabric network to build a platform may optimize the amount of data available while maintaining privacy security. Considering the augmentation of information interaction during the auction process brought about by blockchain, the learning behavior of bidding firms is introduced to investigate the impact of blockchain on ETS auction. In particular, implementing smart contracts can provide a swift and automatic settlement. The simulation results of the proposed system demonstrate the following: (1) fine-grained access is possible with a second delay; (2) the average annual compliance levels increase by 2% when bidders' learning behavior is considered; and (3) the blockchain network can process more than 350 reading operations or 7 writing operations in a second. Highlights: Novel cooperative management of an ETS platform based on blockchain is proposed. The data access control policy based on CP-ABE is used to solve the contradiction between data privacy on the firm chain and government supervision. A learned auction strategy is proposed to suit the enhancement of information interaction caused by blockchain technology. This study provides a new method for climate change policymakers to consider the blockchain application of the carbon market. [ABSTRACT FROM AUTHOR]