How should China prioritize the deregulation of electricity prices in the context of carbon pricing? A computable general equilibrium analysis

Zhang, Kun; Yao, Yao; Liang, Qiao‐Mei; Saren, Gaowa

doi:10.1016/j.eneco.2021.105187

Cited by 15 publications

(6 citation statements)

References 33 publications

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“…Moreover, the data obtained from the CO 2 Emissions Accounts and Datasets (CEADs) team are regarded as China's CO 2 emissions [62] and the total CO 2 emissions of 250 cities in China, except Xinjiang, Tibet, Hong Kong, Macao, and Taiwan, from 2008 to 2020. The research shows that the use of electricity is up to 40% of the total energy consumption [63], and the carbon emissions of the power sector also take up a large proportion of the carbon emissions of fossil energy [64]. Accordingly, to compensate for the missing data on CO 2 emissions in 2020, this paper calculates the proportional coefficient of urban electricity consumption and CO 2 emissions in 2019.…”

Section: Variables 421 Dependent Variablementioning

confidence: 99%

Mechanism and Spatial Spillover Effect of New-Type Urbanization on Urban CO2 Emissions: Evidence from 250 Cities in China

Liu

et al. 2023

Land

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Exploring the effect of new-type urbanization (NTU) on urban carbon abatement is of great practical significance for promoting urban green construction and coping with the challenge of global climate change. This study used data from 250 cities in China from 2008 to 2020 and constructed the NTU evaluation indicator system from five dimensions. We used classical panel regression models to examine the effects of NTU on urban CO2 emissions, and further used spatial econometric models of SEM, SAR, and SDM to identify the spatial spillover effects of NTU on urban CO2 emissions. The main results are that China’s NTU and CO2 emissions are generally rising, and NTU has a significantly negative effect on urban CO2 emissions, with an impact coefficient of −0.9339; the conclusions still hold after subsequent robustness tests. Heterogeneity analysis reveals that NTU’s carbon abatement effect is more pronounced in resource-based cities, old industrial areas, and cities with lower urbanization levels and higher innovation levels. Mechanism analysis shows that improving urban technological innovation and optimizing resource allocation are important paths for realizing urban CO2 emission reduction. NTU’s effect on urban CO2 emissions has a noticeable spatial spillover. Our findings provide policy makers with solid support for driving high-quality urban development and dual-carbon targets.

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Section: Variables 421 Dependent Variablementioning

confidence: 99%

Mechanism and Spatial Spillover Effect of New-Type Urbanization on Urban CO2 Emissions: Evidence from 250 Cities in China

Liu

et al. 2023

Land

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“…Sjöstrand et al (2019) estimated the MAC using the expert‐based approach. The top‐bottom economic model, like the computable general equilibrium (CGE) model, can also be used to measure the marginal abatement for macro individuals (Jiang et al, 2022; Tang et al, 2020; Zhang et al, 2021). The distance function is used to estimate the MAC by calculating the shadow price (An et al, 2021).…”

Section: Literature Reviewmentioning

confidence: 99%

China's manufacturing firms' willingness to pay for carbon abatement: A cost perspective

Shi

Wang

et al. 2023

Bus Strat Env

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The existing studies of emissions reduction focus mainly on the technical potential and abatement costs while overlooking firms' willingness to pay (WTP) for emissions reduction. Yet WTP is a key parameter in a firm's decision to carry out emissions reduction while maximizing its profits. This paper estimates China's manufacturing industry (CMI) firms' maximum WTP for carbon abatement—defined as the cumulative product between the marginal abatement cost and corresponding abatement potential—using a large sample from a data envelopment analysis model. The results show that (a) the maximum WTP is significantly constrained by an isocost carbon abatement curve at RMB 8.65 million for the representative CMI firm; (b) the representative firms' WTP for carbon abatement varies among the sub‐sectors; and (c) profitability and production scales both positively affect firms' WTP for carbon abatement in all of CMI sub‐sectors, while innovation investment has a negative effect. The results suggest that the cost of carbon reduction technology for CMI firms should be below RMB 8.65 million for a representative CMI firm. The government should formulate subsidies or tax relief policies to help firms reduce their abatement costs. Further, the division of tasks in different sub‐sectors, between carbon emissions reduction on the one hand, and ongoing innovation on the other, should be clearly distinguished by policy bias to promote the transformation of industrial structure.

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“…However, if the game is played with only economic gains in mind, it may lead to new peak loads during lowtariff periods. The design of the incentive is a major factor influencing the effectiveness of the DR because end-use tariff in China is regulated, which makes it difficult to develop flexible tariffbased policies (Zhang et al, 2021). The DR score was introduced as an incentivization aid to quantify the capacity of the aggregator of residential customers to contribute to peak regulation based on the similarity between its curves of the electrical load and the regional grid load (Jebli et al, 2021).…”

Section: Basic Framework Of Communityintegrated Energy Systemmentioning

confidence: 99%

Master–slave game-based optimal scheduling of community-integrated energy system by considering incentives for peak-shaving and ladder-type carbon trading

Dai,

Jiang,

Chen

et al. 2023

Front. Energy Res.

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To alleviate the challenges posed by high energy consumption, significant carbon emissions, and conflicting interests among multiple parties in a community-level microgrid, the authors of this study propose a master–slave game-based optimal scheduling strategy for a community-integrated energy system (CIES). First, we analyze the decision variables and revenue-related objectives of each stakeholder in the CIES, and use the results to construct a framework of implementation. Second, we develop a model to incentivize peak regulation and a ladder-type carbon trading model that consider the correlation between the load owing to residential consumers, the load on the regional grid, and the sources of carbon emissions. Third, we propose a master–slave game-based mechanism of interaction and a decision-making model for each party to the game, and show that it has a Stackelberg equilibrium solution by combining genetic algorithms and quadratic programming. The results of evaluations showed that compared with an optimization strategy that considers only the master–slave game, the proposed strategy increased the consumption surplus of the user aggregator by 13.65%, the revenue of the community energy operator by 7.95%, increased the revenue of the energy storage operator, reduced CO2 emissions by 6.10%, and adequately responded to peak-cutting and valley-filling by the power grid company.

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How should China prioritize the deregulation of electricity prices in the context of carbon pricing? A computable general equilibrium analysis

Cited by 15 publications

References 33 publications

Mechanism and Spatial Spillover Effect of New-Type Urbanization on Urban CO2 Emissions: Evidence from 250 Cities in China

Mechanism and Spatial Spillover Effect of New-Type Urbanization on Urban CO2 Emissions: Evidence from 250 Cities in China

China's manufacturing firms' willingness to pay for carbon abatement: A cost perspective

Master–slave game-based optimal scheduling of community-integrated energy system by considering incentives for peak-shaving and ladder-type carbon trading

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