Distortion effects of emissions trading system on intra-sector competition and carbon leakage: A case study of China

Zhang, Peng; Yin, Guangzhi; Duan, Maosheng

doi:10.1016/j.enpol.2019.111126

Cited by 22 publications

(5 citation statements)

References 18 publications

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“…We find that the main reason why trade contributes to the destruction of environmental resources is that the cost of environmental resources is not reflected in the market price. Our conclusion is consistent with the literature regarding pollution haven (Ji [25]) and carbon leakage (Zhang et al [26]). Compared to Ji [25] and Zhang et al [26], we all conclude that unintended transfer payment causes competition distortion which leads to environmental pollution and carbon leakage.…”

Section: Conclusion and Policy Implicationssupporting

confidence: 94%

“…Our conclusion is consistent with the literature regarding pollution haven (Ji [25]) and carbon leakage (Zhang et al [26]). Compared to Ji [25] and Zhang et al [26], we all conclude that unintended transfer payment causes competition distortion which leads to environmental pollution and carbon leakage. The cost of exploitation of natural resources and environmental damage is not adequately reflected in market prices of goods or services; is one of the main reasons trade contributes to the destruction of environmental resources.…”

Section: Conclusion and Policy Implicationssupporting

confidence: 94%

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Modeling the Linkage between Vertical Contracts and Strategic Environmental Policy: Energy Price Marketization Level and Strategic Choice for China

et al. 2022

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The lower price of energy leads to higher coal consumption in China. The idea of an “environment-for-trade policy” could be used to achieve an international competitive advantage, which, in turn, has important implications. To address the issue, we develop properties to examine the link between the low price of energy and strategic environmental policy in China and investigate the choice of policy instruments in a strategic environmental policy model with vertical contracts. In addition, to contribute to the literature on strategic environmental policy, this paper also develops properties to investigate different choices of instruments for the environmental policy and includes the degree of energy marketization for the wholesale price in the study. To do so, we assume that the wholesale price of the polluting input increases with the market price. By using this assumption, this paper analyzes the effects of two instruments of the environmental policy on social welfare and concludes that there is no reason to expect both downstream and upstream firms to establish a high wholesale price. Due to the low level of marketization, when the government selects an emission tax as the policy instrument, the optimal tax rates should be higher than the marginal damage of emissions. However, the optimal resource tax is uncertain when its effect on environmental damage is taken into account. In other words, the resource tax is ineffective as a policy instrument. Our results can be used to draw some practical policies for countries to use their energy effectively. To promote energy sustainability, governments should liberate resource prices and reform the system to get efficient environmental policies.

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Section: Conclusion and Policy Implicationssupporting

confidence: 94%

Section: Conclusion and Policy Implicationssupporting

confidence: 94%

Modeling the Linkage between Vertical Contracts and Strategic Environmental Policy: Energy Price Marketization Level and Strategic Choice for China

et al. 2022

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“…Meanwhile, for farmers, the income will be lower because the selling price received is much lower. The amount of the trading margin is determined by the size of the costs incurred and the risk borne by the trading system (Zhang, et. al., 2020).…”

Section: Literature Reviewmentioning

confidence: 99%

Pekanbaru City Livestock Marketing With Android-Based Applications

Darmayunata

Siswati

Aryanto

2021

JAETS

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This research was conducted to provide solutions to cattle breeders in Pekanbaru City, especially in Rumbai District. Cattle breeders always have difficulty selling cows due to middlemen and coupled with the pandemic period due to the Covid 19 virus, thus making cattle sales decline every year. In increasing the sale of cattle during this pandemic is to use technology as a marketing solution. The technology used in the research is android based. With an Android base, consumers and producers will be integrated with each other so that the buying and selling process becomes easier. The purpose of this study is to help cattle sellers in marketing cattle so that the buying and selling process becomes easy. The method used is Unified Modeling Language (UML) in designing this system. The results show the success of designing applications for cattle sellers, applications can help farmers market their cattle, information about cattle prices to be compared in livestock groups can be seen so as to minimize fraud because buyers can directly see the price of the cattle.

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“…China's ambitious dual carbon targets mirror its dedication to active participation in global climate governance [22]. Central to this mission is the assessment of the role of China's forest carbon sinks within its carbon emission trading market, with a particular emphasis on the broader issue of carbon leakage and its worldwide impact [23]. This assessment is pivotal in refining China's forest carbon policies and in reinforcing its strategic role in global climate discussions.…”

Section: Introductionmentioning

confidence: 99%

How Does Carbon Trading Impact China’s Forest Carbon Sequestration Potential and Carbon Leakage?

Qiao,

Zhang,

2024

Forests

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This paper presents an in-depth analysis of the impact of forest carbon sink trading in China, examining its effects from 2018 to 2030 under various carbon pricing scenarios. Using the Global Timber Market Model (GFPM) along with the IPCC Carbon Sink Model, we simulate the potential shifts in China’s forest resources and the global timber market. The study finds that forest carbon trading markedly boosts China’s forest stock and carbon sequestration, aligning with its dual carbon objectives. China’s implementation of forest carbon trading is likely to result in a degree of carbon leakage on a global scale. During the forecast period, our study reveals that the carbon leakage rates under three different forest carbon trading price scenarios, which at estimated at 81.5% (USD 9.8/ton), 64.0% (USD 25/ton), and 57.8% (USD 54/ton), respectively. Notably, the leakage rate diminishes as the forest carbon sink price increases. Furthermore, analysis also suggests that regional variations in the average carbon sequestration capacity of forests, alongside the structure of China’s timber imports, emerge as significant factors influencing the extent of carbon leakage.

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Distortion effects of emissions trading system on intra-sector competition and carbon leakage: A case study of China

Cited by 22 publications

References 18 publications

Modeling the Linkage between Vertical Contracts and Strategic Environmental Policy: Energy Price Marketization Level and Strategic Choice for China

Modeling the Linkage between Vertical Contracts and Strategic Environmental Policy: Energy Price Marketization Level and Strategic Choice for China

Pekanbaru City Livestock Marketing With Android-Based Applications

How Does Carbon Trading Impact China’s Forest Carbon Sequestration Potential and Carbon Leakage?

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