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To achieve the goal of carbon reduction, China has been piloting the Carbon Emission Trading System (CETS) since 2013. As the economy faces a downward trend, it is significant to explore the impact of CETS on business development. There is still debate in academia about whether this policy can boost the level of business development. This paper, based on all A-share data of listed companies in China from 2009 to 2018, uses the Difference in Differences (DID) model to verify the impact of CETS on the input of capital and labor factors and the level of technology in enterprises and discusses the industry heterogeneity of this impact in detail. Placebo tests, propensity score matching, and triple differences ensure the robustness of the conclusions. In further research, this paper decomposes the policy effect of CETS. It regresses the impact of carbon quota prices and carbon market trading scale on business development. The final conclusion is that CETS has a positive impact on the input of capital and labor in enterprises and a negative impact on the level of technology. After distinguishing industries, this conclusion shows differences according to different characteristics of high emissions and low emissions. In addition, the increase in carbon quota prices hinders business development, while the scale of carbon market trading shows an inverted "U" relationship with business development. The article provides meaningful policy references for China and countries in the early stages of CETS construction. [ABSTRACT FROM AUTHOR]

In today's environmentally conscious world, carbon trading has emerged as a widely accepted economic instrument to mitigate the externalities resulting from deteriorating environmental problems. Consequently, the use of market-based mechanisms to address environmental issues has reached a global consensus. Many countries are implementing progressive steps by establishing carbon markets to promote low-carbon development and meet their carbon reduction targets. However, the inherent risks in carbon trading markets may hamper the formation of a reasonable carbon price signal, leading to inadequate stimulation of low-carbon technology investments and potential failure to achieve national emission reduction goals. Therefore, managing the risks associated with carbon trading markets is crucial. This study focuses on measuring the risk of China's carbon market, with the primary aim of exploring carbon price fluctuation patterns and precisely measuring market risks. The risks associated with China's carbon market are quantified and analyzed using the exponential generalized autoregressive conditional heteroskedasticity (EGARCH) model, extreme value theory (EVT), and the value at risk (VaR) method. Results show that (1) the effect of external shocks on each carbon market is asymmetrical, and positive shocks exert considerable leverage effects on carbon price fluctuations. (2) EVT can be used to effectively fit the risks in the carbon markets. The risks of each carbon market show different characteristics. The risk of Hubei and Guangdong carbon markets is relatively small, and the dynamic VaR is nearly ±0.2. (3) Compared with the performance of the Chinese carbon market, the performance of the European Union Emission Trading Scheme is more stable, and its dynamic VaR for most of the period is within ±0.1, which is considerably lower than the VaR of other Chinese carbon markets. This study also proposes suitable policy implications to ensure the healthy and sustainable development of China's carbon market. [ABSTRACT FROM AUTHOR]

Based on data from A-share listed companies in the Shanghai and Shenzhen markets from 2009 to 2020, this study used the PSM-DID (Propensity Score Matching-Difference in Differences) method to empirically examine the impact of carbon emissions trading scheme (ETS) on corporate financial performance and its effect mechanisms. The empirical results indicate that the implementation of ETS effectively enhances corporate financial performance among pilot companies. Additionally, the results indicate that carbon prices have a moderating effect between ETS and corporate financial performance, whereby higher carbon prices strengthen the impact of ETS on corporate financial performance. The influence mechanisms find that ETS improves corporate financial performance primarily driven by promoting corporate green innovation capacity and enhancing corporate social responsibility. Notably, only the sample group with higher carbon prices exhibits this effect. Overall, the implementation of the ETS contributes to improving the ecological environment and enhancing business operations, thus playing a pivotal role in reconciling environmental benefits with economic interests. [ABSTRACT FROM AUTHOR]

Emissions trading schemes (ETS) have spread across the globe to tackle climate change. However, limited attention has been given to how ETS characteristics and designs differ and why. We use the concept of institutional complementarity to explore how the EU ETS and South Korea's ETS (K‐ETS) adapt to complement established political economy. The EU ETS is characterized as a market with stakeholder ownership, while the K‐ETS is more regulatory in nature with government leadership. The EU ETS complements a decentralized political system with liberalized energy market, and the K‐ETS became compatible with the centralized majoritarian politics and a regulated electricity market. The ETSs have evolved incrementally, and they are not likely to link in the foreseeable future due to divergence. We suggest a strong focus on "how to adapt" an ETS to its own institution rather than adopting the established blueprint model in countries with a strong regulatory style of governance. Related Articles: Caliskan, Cantay. 2020. "The Influence of Elite Networks on Green Policy Making." Politics & Policy 48(6): 1104–37. https://doi.org/10.1111/polp.12382. Tanaka, Yugo, Andrew Chapman, Tetsuo Tezuka, and Shigeki Sakurai. 2020. "Multiple Streams and Power Sector Policy Change: Evidence from the Feed‐In Tariff Policy Process in Japan." Politics & Policy 48(3): 464–89. https://doi.org/10.1111/polp.12357. von Malmborg, Fredrik. 2023. "Combining the Advocacy Coalition Framework and Argumentative Discourse Analysis: The Case of the 'Energy Efficiency First' Principle in EU Energy and Climate Policy." Politics & Policy 51(2): 222–41. https://doi.org/10.1111/polp.12525. [ABSTRACT FROM AUTHOR]

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

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

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

While carbon pricing, in general, and carbon taxes, in particular, are popular with economists, they are subject to considerable misunderstanding among policy-makers and the public. In this paper I consider and refute five myths about carnbon taxes: (i) that a carbon price will hurt economic growth; (ii) that carbon pricing will kill jobs; (iii) that a carbon tax and cap-and-trade programme have the same economic impacts; (iv) that we can't achieve carbon reduction targets with a carbon tax; and (v) that carbon pricing is regressive. I then discuss implications for policy-making. [ABSTRACT FROM AUTHOR]

This paper examines a sample of 167 publicly listed enterprises covered by eight regional pilot emissions trading markets in China from 2013 to 2023. Our empirical findings indicate that the carbon price returns negatively affect the stock returns of enterprises covered by the regional markets, with the Shenzhen and Guangdong regions suffering a more pronounced effect. Furthermore, high-carbon-intensity enterprises are more susceptible to this negative impact than their low-carbon-intensity counterparts. The robustness of the negative relationship is evident even after the national emissions trading market opened on July 16, 2021. This study provides insightful guidance for policymakers to regulate emissions trading markets. [ABSTRACT FROM AUTHOR]

The emissions trading scheme (ETS) has piqued substantial interest among economists and policymakers. China officially launched the electricity sector's national carbon emissions trading market in 2021, making it the world's largest compliance carbon market. In contrast to the cap-and-trade (C&T) system prevalent in other economies, China's national carbon market employs a rate-based mechanism that implicitly subsidizes the output of regulated entities; however, is it effective? This study uses a market-design theoretical framework to explore whether China's national carbon market functions effectively and, more critically, what leads to its (slight) underperformance. We discover that policy design, policy conflicts, policy uncertainty, inexperienced market regulation, and excessive or inappropriate government intervention are the primary constraints on this emerging market, resulting in shrinking market thickness, congested market transactions, and lack of safety. For China to establish a better national carbon market, stronger market-oriented rules, appropriate market regulation, improved policy coordination, and greater electricity market reforms are required. [ABSTRACT FROM AUTHOR]

To reduce industrial carbon emissions, various industries have been seeking ways to reduce their own emissions. Implementing carbon trading system measures is one way to effectively control industrial carbon emissions. However, in different industrial sectors, carbon trading systems have different impact. The 14-year provincial panel data (2005–2019) were analyzed by using the propensity score matching and the difference-in-difference model to evaluate the role of the emission trading system (ETS) in reducing emissions from different industries. According to the study, ETS has reduced carbon emissions from the agricultural production sector by 1.6876%. Secondly, it also had a significant inhibitory effect on the manufacturing sector, about 24.0489. Mining, electricity production, wholesale and other industrial sectors are insignificant disincentives, and construction and transportation are insignificant facilitators. China's ETS, therefore, mainly acts as an inhibitory force for different industries, which can effectively reduce their carbon emissions. [ABSTRACT FROM AUTHOR]

Background: The classical mathematical formulation of the vendor-managed inventory (VMI) model assumes an infinite planning horizon, and consequently, the solution derived ignored the impact of the first cycle. The classical formulation is associated with another implicit assumption that input parameters remain static indefinitely. Methods: This paper develops two mathematical models for VMI for a joint economic lot-sizing (JELS) policy. Each model considers investment in green production, energy used for keeping items in storage, and carbon emissions from production, storage, and transportation activities under the carbon cap-and-trade policy. The first model underlies the first cycle, while the second underlies subsequent cycles. Results: The re-start-up production time for subsequent cycles commences only at the time required to produce and replenish the first lot, which implies further cost reduction. Mathematical formulations are perceived as important both for academics and practitioners. For example, the base model of the first cycle (subsequent cycles) generates an optimal produced quantity with 18.42% (4.35%) less total system cost when compared with the pest scenario in favor of the existing literature. Moreover, such a percentage of total system cost reduction increases as the production rate increases. Further, the proposed models not only produce better results but also offer the opportunity to adjust the input parameters for subsequent cycles, where each cycle is independent from the previous one. Conclusions: The emissions generated by the system are very much related to the demand rate and the amount of investment in green production. Illustrative examples, special cases, model overview, and managerial insights are given. The discussion related to the contribution of the proposed model, the concluding remarks, and further research are also provided. The proposed model rectifies the base model adopted by the existing literature, which can be further extended to be implemented in several interesting further inquiries related to JELS inventory mathematical modeling. [ABSTRACT FROM AUTHOR]

The carbon emissions trading scheme (CETS) in China is an important market-based environmental policy mechanism for decreasing carbon emissions. This paper calculates the total factor carbon productivity (TFCP) based on data from 275 cities in China from 2007 to 2020 using the DEA method and investigates the impact of the CETS on regional TFCP using the differences-in-differences (DID) method, all against the backdrop of carbon peaking and carbon neutrality. The research findings reveal that CETS has consistently improved TFCP in pilot cities, and this conclusion has held up following a number of robustness tests. Temporal heterogeneity experiments demonstrate that as implementation time increases, the enhancing effect takes on an inverted "U-shaped" structure with a 7-year effective lifetime. Spatial heterogeneity studies reveal that as one moves away from the pilot cities, the policy effect on surrounding cities' TFCP is inhibited, followed by facilitation. CETS policies can influence regional TFCP through the effects of green innovation and industry upgrading, according to mediation mechanism testing. We present policy recommendations based on the research findings for meeting the "dual" carbon goals and strengthening the carbon trading mechanism. [ABSTRACT FROM AUTHOR]

China has long sought to address climate change in line with other development goals. However, research supporting this alignment often employs data-driven models that downplay the policies and institutions needed to achieve the multiple benefits that studies feature in their analyses. This oversight is troubling because it neglects gaps between goals and the actual integration of climate and development or co-control of air pollution and greenhouse gases (GHGs). Additionally, this oversight may overlook growing implementation challenges as China pursues synergies between net-zero emissions, biodiversity, and circularity. This article illustrates these challenges by tracing the goals and policies/institutions in China over three phases: (1) integration (1979–2010), (2) co-control (2011–2019), and (3) synergies (2020–present). This article argues that China needs to strengthen the science–policy interface and ensure that new market-based policy instruments (such as emissions trading programs) as well as the leadership responsibility system incentivize reductions in overall GHG emissions while shrinking ecological footprints in the shifts to synergies. [ABSTRACT FROM AUTHOR]

Emission Trading System (ETS) is an innovative practice under the progress of green development in China. It is also an important method for China to achieve market-oriented environmental governance in ecological civilization construction. The ETS pilot policy has implemented for more than 10 years. However, the co-benefits of ETS pilot policy by the integration of energy consumption, carbon and sulfur dioxide emissions, and wastewater has not been evaluated. In order to fill this gap, we use the 2003–2017 annual data of 30 China's provinces (municipalities and autonomous regions), and utilize the Difference-in-Differences (DID) model and Propensity Score Matching (PSM-DID) methodology to evaluate the co-benefits of ETS pilot policy on energy conservation and emission reduction. We find that the ETS pilot policy significantly promote energy conservation and emission reduction. Eastern and central China have significantly benefited from the policy, while the western China has not due to the limited technology and innovation as well as an imbalance of the industrial structure. The results provide the policy reference for China's government and institutions as well as the governments and institutions around the world to fulfill their commitments to save energy and reduce emissions, and early achieve the carbon peaking and carbon neutralization. [ABSTRACT FROM AUTHOR]

Timely, continuous, and dynamics-based estimates of PM 2.5 emissions with a high temporal resolution can be objectively and optimally obtained by assimilating observed surface PM 2.5 concentrations using flow-dependent error statistics. The annual dynamics-based estimates of PM 2.5 emissions averaged over mainland China for the years 2016–2020 without biomass burning emissions are 7.66, 7.40, 7.02, 6.62, and 6.38 Tg, respectively, which are very closed to the values of the Multi-resolution Emission Inventory (MEIC). Annual PM 2.5 emissions in China have consistently decreased by approximately 3 % to 5 % from 2017 to 2020. Significant PM 2.5 emission reductions occurred frequently in regions with large PM 2.5 emissions. COVID-19 could cause a significant reduction of PM 2.5 emissions in the North China Plain and northeast of China in 2020. The magnitudes of PM 2.5 emissions were greater in the winter than in the summer. PM 2.5 emissions show an obvious diurnal variation that varies significantly with the season and urban population. Compared to the diurnal variations of PM 2.5 emission fractions estimated based on diurnal variation profiles from the US and EU, the estimated PM 2.5 emission fractions are 1.25 % larger during the evening, the morning peak is 0.57 % smaller in winter and 1.05 % larger in summer, and the evening peak is 0.83 % smaller. Improved representations of PM 2.5 emissions across timescales can benefit emission inventory, regulation policy and emission trading schemes, particularly for especially for high-temporal-resolution air quality forecasting and policy response to severe haze pollution or rare human events with significant socioeconomic impacts. [ABSTRACT FROM AUTHOR]

Carbon control in the thermal power generation industry is crucial for achieving the overall carbon peak target. How to predict, evaluate, and balance the allocation of inter provincial carbon emissions has a significant impact on the decision-making of reasonable allocation of inter provincial carbon emissions in the target year. Therefore, this paper uses Monte Carlo-ARIMA-BP neural network and ZSG-DEA model to conduct temporal trend prediction and carbon emission quota allocation research. We propose the "intra provincial and inter provincial" framework for carbon emissions trading in thermal power plants, which aims to break through the barriers in carbon emission rights exchange among provinces. The conclusions are as follows: (1) the growth trend of carbon emissions from thermal power is gradually slowing down and is expected to peak before 2030. (2) Inner Mongolia, Jiangsu, and Shandong have high input–output efficiency, and are all the main output provinces for carbon emission quota allocation. After being adjusted using the ZSG-DEA model, they can still be at the forefront of efficiency. (3) The "intra provincial and inter provincial" framework for carbon emissions trading can effectively predict and allocate the carbon emission demand of each province from time and space dimensions, balance the carbon emission rights and interests of each province, and provide forward-looking planning suggestions for inter provincial carbon emission rights exchange. [ABSTRACT FROM AUTHOR]

To be able to formulate any plausible strategies for sustainability, it is critical to establish a clear understanding of the international metals trade system complexity and the consequences in emergent embodied carbon emissions (ECE). For this purpose, we proposed a two-layer framework based on the multi-regional input-output model for calculating ECE: the intermediate production and final consumption trade layers. The proposed framework model combines the construction of a clustering index system and conducting cluster analysis from both the regional and sectoral dimensions. It is shown that developed regions transfer carbon emissions to developing regions via metals trading. This happens especially in the intermediate production stage at a level of 1.35 times higher than the final consumption stage. Furthermore, the metal sector suffers the most from carbon transfers from manufacturing, with the most carbon emissions transferred to mining. Moreover, considering environmental and technological factors to cluster regions and sectors into four and three clusters. China and Russia are in a cluster under greater pressure to reduce emissions as compared to other nations. Also, the construction and manufacturing form a cluster that their reduction of carbon emissions will effectively reduce the ECE of the metal sector. As a result, policy implications for reducing carbon emissions are investigated for each cluster in the international trade of metals contributing to the ultimate goal of global sustainable development. [ABSTRACT FROM AUTHOR]

In this paper, we propose meaningfulness as one important evaluative criterion in individual climate ethics and suggest that most of our greenhouse gas emitting actions, behaviours, and lives are the opposite of meaningful: anti-meaningful. We explain why such actions etc. score negatively on three important dimensions of the meaningfulness scale, which we call the agential, narrative, and generative dimensions. We suggest that thinking about individual climate ethics also in terms of (anti-) meaningfulness illuminates important aspects of our troubled ethical involvement with CC and can make a fresh and fruitful contribution to existing discussions, which tend to focus on moral responsibility and obligations. [ABSTRACT FROM AUTHOR]

The development of e-commerce and the green economy has prompted suppliers of green products to introduce internet channels by which products are directly sold to consumers. However, the emergence of "price wars" and "free riding" between the two channels after the introduction of online channels may affect the stability of the green supply chain. This paper uses optimization theory to investigate the impact of service spillover effects and different channel structures on the optimal decision of supply chain members in a Stackelberg game. By comparing the equilibrium outcomes of the single-channel and dual-channel supply chain in a setting with and without retail services, we observe that the supplier prefers to encroach on the market when services that retail locations provide largely spillover to and benefit the direct sales channel. Contrary to popular belief, a higher degree of service spillovers is beneficial for the retailer to achieve more returns under the dual-channel structure, whereas supplier encroachment will lead to a decline in the service level if the spillover degree is relatively low. In addition, the emission reduction level of products under supplier encroachment is always higher than that employed in the single-channel structure if consumers have both low-carbon preference and a high degree of service sensitivity. Finally, we expand our discussion by introducing the carbon cap-and-trade (CCT) mechanism to compare the conditions for achieving Pareto improvement under supplier encroachment. These results can provide helpful insights for decision-makers in supply chain management to implement effective channel selection and achieve sustainable development. [ABSTRACT FROM AUTHOR]

Emissions trading and nature‐based solutions, particularly REDD+, have lent themselves to the critical literature on the "socioecological fix" in neoliberal capital accumulation and state regulation. Prone to reversals, land conflict, and leakage, these mechanisms displace the burden of carbon emissions reductions to global South countries, promote new green commodities, and thus increase rather than curb the chance of capital accumulations by big polluters. Studies of existing REDD+ projects register the privatisation of forest management on the one hand and "aidification" on the other, suggesting impediments to fully commodifying forest carbon ranging from social movement resistance to technical issues. This case study of Brazil's national Amazon Fund points to global South protagonism in constructing and negotiating REDD+, challenging Northern and market hegemonies. Progressive Southern actors use the political space of the fix to defend rural communities' territorial rights and demand resources in line with historic responsibilities and climate justice. [ABSTRACT FROM AUTHOR]

Under neoclassical assumptions, this paper develops a model to illustrate the effects of government use of carbon allowances for carbon emission control. We find that control using the instrument of issuing long-term carbon allowances does not produce the same good results in the Decentralised Equilibrium as in the Planning Problem. Thus, while Coase's Theorem ensures that the Pareto optimum is maintained in an economy with multiple agents, it does not align the social development with the economic optimum of the planner. We believe this is due to the that the price of carbon allowances is determined by asset profiles of investors rather than externalities. The steady-state under the special pathway shows that consumption is determined by the rate of technological progress, the total amount of carbon dioxide at steady-state, the level of technology at which steady-state is reached and the total amount of carbon allowances remaining. The comparison with the optimal tax path reveals that the price of carbon allowances has increased too quickly, leading to excessive consumption of fossil fuels in the early stages. [ABSTRACT FROM AUTHOR]

Under the pressure of environmental performance appraisal and the public's environmental concerns, based on industrial symbiosis and using an evolutionary game, our paper investigates firms' abatement behavior. We explore whether implementing carbon taxation and cap-and-trade or dynamic carbon taxation and cap-and-trade can effectively induce firms to reduce carbon emissions through industrial symbiosis. Moreover, we propose a waste-dependent symbiotic chain between recycling suppliers and manufacturers. Our results indicate that carbon taxation and cap-and-trade can effectively facilitate the formation of a symbiotic chain. In addition, the government should enforce taxation rates and adjust market-oriented carbon trading prices so that the two players can realize a win-win situation through the symbiotic chain. Concerning the evolutionary stability trajectories of the two populations, a mixed strategy existed only under dynamic carbon taxation and cap-and-trade situations. Additionally, we find that the impact of dynamic carbon taxation on the two populations' intention to apply carbon emission reduction has the opposite effect. Further simulations prove that the taxation maximum does not affect the steady state of the recycling suppliers; however, as the taxation maximum rises, the proportion of manufacturers who adopt carbon emission reduction decreases. [ABSTRACT FROM AUTHOR]

Since the transportation industry produces remarkable carbon emissions worldwide, governments aim to curb these emissions by implementing different carbon regulations. However, little is known regarding how the heterogeneity of transportation systems should be exploited to design carbon regulations. To fill this research gap, the present article formulates carbon cap-and-trade and carbon offset regulations to reduce total carbon emissions produced by road and multimodal road-rail freight transportation systems (FTSs) in a duopoly market; the latter is regarded as a green, energy-efficient transportation mode. A novel procedure is suggested to allocate initial carbon caps that is a hybrid of both benchmark and grandfathering methods. The procedure allows the government to exploit the energy efficiency of the multimodal system, when targeting a reduction of total carbon. Then, a game-theoretic approach is adopted to implement the mentioned carbon regulations. A government, as a Stackelberg leader, maximizes a social welfare function containing economic, social, and environmental dimensions. Under the cap-and-trade regulation, a Nash bargaining process is proposed to trade carbon permits between the FTSs, as the followers, for updating their initial caps. The equilibrium outputs of the two mentioned carbon regulations and a carbon tax regulation are compared. The findings based on an experimental analysis suggest that the cap-and-trade (carbon offset) is the optimal and energy-efficient regulation from the social (economic or environmental) perspective. In terms of policy implications, our findings indicate that the development of a marketplace infrastructure for trading carbon permits is not justifiable under the economic and environmental perspectives of the government. [ABSTRACT FROM AUTHOR]

The carbon border adjustment mechanism (CBAM) of the European Union (EU) may become a significant global climate policy milestone. The EU trade partners most willing to accept CBAM could help it gain the critical mass necessary for survival and broader adoption. The cooperation of the world's major economies would be particularly important, while major recipients of EU development aid may be most likely to fall into line. The stances of countries will depend on their climate outlook and how CBAM affects them. This paper assesses which countries are likely to be most accepting the EU's CBAM by constructing an index with the following dimensions: export structure, national carbon policy, innovation capacity, trade agreements with the EU, and the carbon intensity of their economies. The CBAM Support Index is applied to three different groups of countries to identify a variety of possible allies.

Energy efficiency (EE) plays an important role in achieving the dual-carbon goal, and improving EE is thus indispensable. This paper evaluates the impact of carbon emission trading policy (CETP) on EE based on a difference-in-difference (DID) method, using 16-year data of 30 provinces and cities from 2005 to 2020. Conclusions are as follows: (1) CETP significantly promotes EE, and this conclusion still appears valid after robustness tests. (2) The positive impact of CETP on EE is more effective in regions of high foreign direct investment (FDI) and high government intervention (GOVI). (3) The positive impact of CETP on EE is through impact mechanisms of energy structure adjustment (ESA), green innovation (GI), and industrial structure upgrading (ISU). The findings in this paper may enrich current research in CETP and offer more pragmatic suggestions for policy advancement as well. [ABSTRACT FROM AUTHOR]

Improving the carbon emission efficiency in the power industry is a crucial step to achieve China's "double carbon" goal. Carbon emission trading (CET) is an important tool for carbon emission reduction in the power industry. This paper collects data on the power industry of 30 provinces in China from 2005 to 2020 and applies an undesirable super-efficiency epsilon-based measure (EBM) model to measure the total-factor carbon emission efficiency of the power industry (CEEP). A spatial difference-in-differences (SDID) model is constructed to analyze the spatial spillover effects of China's CET on CEEP. Then, a spatial mediating effect model is employed to explore the influence mechanism of CET. The results show that (1) during the sample period, CEEP shows a trend of fluctuating growth, and the overall level of CEEP is still relatively low; (2) CET has a significant promotion effect on CEEP, resulting in an average increase of 6.02% in the efficiency value of the pilot areas; (3) the spatial spillover effect test proves that CET not only improves the CEEP in the pilot areas, but also promotes the improvement of CEEP in the adjacent areas; and (4) the influence mechanism test shows that CET can improve CEEP by reducing energy intensity, promoting technological progress, and upgrading industrial structure. This study provides a new perspective for the measurement of CEEP and expands the research on the emission reduction effect of CET in the power industry. Finally, based on the research results, this study proposes targeted suggestions to provide reference for the government to formulate emission reduction policies. [ABSTRACT FROM AUTHOR]

Using panel data for 277 Chinese cities, this paper applies a time-varying difference-in-differences (DID) model to empirically test the impact of China's carbon emissions trading scheme (ETS) on urban air quality, and further explores its heterogeneity and the mechanisms involved. The results show that ETS can improve urban air quality. This conclusion remains robust through a series of robustness tests, including PSM-DID estimation, varying window periods, exclusion of significant events, lag phase, and placebo tests. The dynamic effect test indicates that ETS has a continuous and effective effect on improving urban air quality. Mechanism analysis reveals that the degree of marketization can enhance the improvement effect that ETS has on urban air quality. Meanwhile, industrial structure upgrading and green technology innovation are important mechanisms by which pilot ETS policy improves urban air quality. Regional heterogeneity analysis finds that ETS only improves urban air quality in eastern and central regions. [ABSTRACT FROM AUTHOR]

Emission trading scheme (ETS) is one of the most important ways to mitigate carbon emissions. As the largest carbon emitter in the world, China implemented ETS policy in 2013. Whether ETS policy can boost enterprise green technological innovation (GTI) quality in China remains to be discussed after reviewing the previous studies. All 318 A-share listed enterprises of China's eight high-carbon emission industries from 2008 to 2021 are chosen to investigate the influence of the ETS policy on enterprise GTI quality by the difference-in-difference (DID) method. Furthermore, heterogeneous effects of ETS policy on the quality of enterprise GTI are analyzed from three aspects: enterprise life cycle, corporate environmental management, and industry classification. The findings indicate that China's ETS policy has a positive influence on the quality of GTI in eight high-carbon emission industries. Further heterogeneity analysis demonstrates (1) China's ETS policy has varying effects on the eight high-carbon emission industries; (2) China's ETS policy can improve GTI quality of enterprises in the maturity stage of their life cycle, but not for those in their growth stage. (3) Comparing the effect of China's ETS policy, GTI quality of enterprises with higher environmental management score is stimulated, while GTI quality of those with lower score is not. [ABSTRACT FROM AUTHOR]

The current study emphasizes the inherent shortcomings of laws and policy approaches that are based on the premise that by increasing wood production, much more emission credits can be achieved by using wood in alternative uses. The article aims to exploit the financing of emission reductions, discuss how carbon sinks held in forest resources can be activated, traded, and financed, and explain how Turkiye's forest carbon potential can be exploited. To make a comparative analysis of the situation of Turkiye at global level, Russian's potential for carbon sequestration and its trade have been dealt with as a comparison by following quantitative research methodology. In this research, the calculation method has been used to determine the number of houses that are likely to be built in rural areas using wood materials, e.g., the construction of 100,000 houses with a construction area of 100 m² per year. Consequently, the forest carbon generated by alternative scenarios contributes positively to the emission balance sheet, as well as climate change mitigation through carbon emission trade despite all legal and technical constraints. Although both countries have similar shortcomings of obtaining carbon credits and its trade, of course Russia has a promising situation in comparison with Turkiye with respect to the amount of carbon sequestered and the likelihood of its trade potential at global level. [ABSTRACT FROM AUTHOR]

Emission trading policies can provide environmental incentives for businesses, leading to a reduction in pollution emissions and promoting sustainable environmental development. Previous research indicated the significant impact of market-based environmental regulations on emission reduction by businesses, however, there is a lack of in-depth examination from the perspective of overall corporate management efficiency. In this study, we conducted research using the 2007 SO2 emission trading pilot program as a quasi-natural experiment to investigate the mechanisms and effects of emission trading systems on corporate resource allocation efficiency. The study found that the implementation of emission trading systems significantly improves corporate resource allocation efficiency. Furthermore, through market regulation and administrative supervision mechanisms, corporate resource allocation efficiency can be further enhanced. However, emission trading systems have heterogeneous effects on resource allocation efficiency, with a stronger promotion effect on optimizing resource allocation in cases of greater financing constraints and higher levels of corporate governance. This study provides important policy insights for further promoting market-based environmental regulation reforms and improving corporate resource allocation efficiency. [ABSTRACT FROM AUTHOR]

The carbon budget compatible with the Paris Agreement temperature target is rapidly depleting. Sufficient net CO2 removal can rein in excess temperature increase. Where legislators opt for economic instruments to enable net CO2 removal, which assumptions about decision-making behaviour should they apply? Though traditional law and economics suggests that subjects of the law are typically rational maximisers, puzzling evidence from emissions trading systems suggest that we may have to consider alternative assumptions such as those offered by behavioural law and economics. Based on the idea that loss aversion may have affected firms subject to emissions trading, this article explores what the existence of loss averse preferences could mean for the efficacy of offering either charges or subsidies to incentivise CO2 removal. It argues that where decision makers exhibit loss averse rather than rational maximising preferences, charges may present more effective incentive than certain subsidies. This finding is of particular relevance for facilitating net negative emissions because legislators are currently opting for subsidies to incentivise CO2 removal. Predicting decision-making behaviour is, however, fraught with uncertainty, implying a risk for the environmental effectiveness of relying on pure economic instruments. Legislators should account for that behavioural uncertainty when choosing the proper legislative tool to enable net CO2 removal. [ABSTRACT FROM AUTHOR]

Using a multi-level perspective approach combined with top-down macroeconomic models, we analyze the situation of the GCC countries in the perspective of a global transition to zero-net emissions before the end of the century. Based on these analyses, we propose strategic and political options for these oil and gas exporting countries. We show that it would be unwise for GCC member states to adopt an obstructionist strategy in international climate negotiations. On the contrary, these countries could be proactive in developing international emissions trading market and exploiting negative emissions obtained from CO2 direct reduction technologies, in particular direct air capture with CO2 sequestration, and thus contribute to a global net-zero-emissions regime in which clean fossil fuels are still used. [ABSTRACT FROM AUTHOR]

Negative carbon emissions options are required to meet long‐term climate goals in many countries. One way to incentivise these options is by paying farmers for carbon sequestered by forests through an emissions trading scheme (ETS). New Zealand has a comprehensive ETS, which includes incentives for farmers to plant permanent exotic forests. This research uses an economy‐wide model, a forestry model and land use change functions to measure the expected proportion of farmers with trees at harvesting age that will change land use from production to permanent forests in New Zealand from 2014 to 2050. We also estimate the impacts on carbon sequestration, the carbon price, gross emissions, GDP and welfare. When there is forestry land use change, the results indicate that the responsiveness of land owners to the carbon price has a measured impact on carbon sequestration. For example, under the fastest land use change scenario, carbon sequestration reaches 29.93 Mt CO2e by 2050 compared to 23.41 Mt CO2e in the no land use change scenario (a 28% increase). Even under the slowest land use change scenario, carbon sequestration is 25.89 Mt CO2e by 2050 (an 11% increase compared with no land use change). This is because, if foresters decide not to switch to permanent forests in 1 year, carbon prices and ultimately incentives to convert to permanent forests will be higher in future years. [ABSTRACT FROM AUTHOR]

A recurring theme in Thomas Tietenberg's research is that pragmatism should guide the design of economic policy instruments for reducing environmental pollution. Tietenberg was among the first to argue that incentive-based policies that are informed by economics research on practical implementation problems, while not perfect, are the most effective policy tool for controlling pollution. The wisdom of his position has been borne out in many emissions trading programs that have been implemented successfully in the past 40 years. Nevertheless, there have been setbacks. For example, the nation's first cap-and-trade program for controlling local air pollution (RECLAIM) has been terminated. This fate was not because RECLAIM's history revealed some fatal flaw in emissions trading, but instead was the consequence of decisions about the program's design and operation that ignored the practical prescriptions that Tietenberg and his contemporaries had proposed decades earlier. [ABSTRACT FROM AUTHOR]

This article reviews some of the foundational insights brought by Tom Tietenberg into academic research on environmental economics, along with some of the most highly cited works that credit these insights as inspiration. It follows three waves of environmental regulation: legal, command-and-control regulation of the 1970s; market-based regulations developed in the 1980s; and voluntary approaches expanded in the 1990s. Following Tietenberg's early work, the article begins with the costs of rigid regulation, the benefits of moving towards incentive-based approaches, and the role of legal liability in regulatory compliance. Having made a compelling case for market-based environmental policies, Tietenberg inspired an abundant literature on emissions trading opportunities and design issues. Among these, the roles of transaction costs, market power, banking and borrowing, and spatial differentiation in emissions trading are highlighted. Finally, attention is turned to the effectiveness of voluntary and information-based mechanisms and Tietenberg's contributions to understanding the channels through which publicly disclosed information can be acted upon. It concludes noting the continued relevance of all these strands of research as environmental economists confront the epochal challenge of climate change. [ABSTRACT FROM AUTHOR]

The promotion of innovation by the market transaction mechanism is affected by the perfection of the market system, the support of government policies, and companies' operational strategies. However, few empirical studies explore this subject. In this context, we investigated how China's carbon emission trading (CET) policy promotes companies' total factor productivity (TFP) from the perspective of operational strategies, technological innovation, and market environment. Using the micro-data of listed companies from the Chinese stock "A" markets, we employed the difference-in-differences method to identify the CET policy's effect on companies' TFP. The benchmark regression results reveal that the policy has significantly boosted companies' TFP. Furthermore, the mechanism analysis shows that companies could enhance their TFP by promoting technological innovation instead of operational strategies. Meanwhile, the government can facilitate this improvement effect by optimizing the market environment. Moreover, the heterogeneity analysis of market failure demonstrated that it would affect the performance of the CET mechanism. Additionally, the CET scheme's effect on companies' TFP is heterogeneous in terms of industry, ownership, and region. The results suggest that the Chinese government should continue to improve the market and institutional systems, increase R&D technology subsidies for innovation activities, and enhance the level of financial development. [ABSTRACT FROM AUTHOR]

China has pledged to peak carbon emissions by 2030 and to become carbon neutral by 2060. Achieving the targets would need great improvement of its emissions trading scheme (ETS) that covers half of the country's emissions. Lessons from the European Union have shown that the ETS is not only a product of the changing circumstances, but its implementation and revisions are also continuously affected by the evolving context. Using a political economy perspective, we examine whether the changing environment is also affecting China's ETS. Our analysis centres on two recent contextual dynamics with relevance to the ETS: (1) the change in the ETS authority in 2018; and (2) the impacts of the deteriorating economic environment on the climate‐energy policy complex. We find that China's ETS and its broad climate ambitions are still constrained by the tensions between the long‐term socio‐economic benefits of low‐carbon policies and the short‐term economic interests behind the government's policy motives, which led to conflicting interests and priorities among regulatory agencies and local governments. The analysis contributes to the political economy debates on emissions trading and China's environmental governance. It also provides practical insights to the policymakers with an in‐depth inquiry into the structural barriers to China's net‐zero targets. [ABSTRACT FROM AUTHOR]

The impact of the carbon emission trading system (ETS) on firms' market competitiveness has been a controversial issue with no consistent theoretical conclusions. The aim of this paper is to explore the impact of the carbon emission trading system on firms' markups using the latest robust staggered difference-in-difference estimation method. The results show that China's carbon emission trading system greatly contributes to the enhancement of firms' market power, as evidenced by a series of robustness tests. In addition, the analysis of the impact mechanism shows that the carbon emission trading system enhances the market power of firms through the low-carbon innovation effect and the market integration effect, while the impact of the environmental cost effect is not obvious. Moreover, the heterogeneity analysis shows that the impact of China's carbon trading system policy on firms' market power is more pronounced, especially for those firms that are actively involved in low-carbon transformation and upgrading, have a stronger cost-shifting capacity, and are more efficient in production. This study provides empirical evidence on how environmental regulations affect firms' market power and offers theoretical guidance for the construction of China's carbon market. [ABSTRACT FROM AUTHOR]