Integrated model for robust emission trading under uncertainties: Cost-effectiveness and environmental safety

Ermoliev, Y.; Ermolieva, T.; Jonas, M.; Obersteiner, Michael; Wagner, Fabian; Winiwarter, Wilfried

doi:10.1016/j.techfore.2015.01.003

Cited by 12 publications

(3 citation statements)

References 19 publications

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“…Considering EPU as the spiller and financial markets as the receiver, Stolbov and Shchepeleva (2020) emphasized that EPU transmits uncertainty to specific financial markets or the real economy through macro-fundamental channels, thereby, affecting commodity prices and the market structure (Ermoliev et al, 2015). Ma et al (2019), using the GARCH-MIDAS method, suggested that EPU significantly and positively affects oil return fluctuations.…”

Section: Literature Reviewmentioning

confidence: 99%

Exploring the bidirectional causality between green markets and economic policy: evidence from the time-varying Granger test

Wang

Ren

et al. 2022

Environ Sci Pollut Res

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The vigorous development of green markets and the effective mitigation of economic policy fluctuations are current hotspots that intrigue our interest in exploring the causal relationships between green market returns and economic policy uncertainty (EPU). Green bonds, corporate environmental responsibility, green technology investment, and the carbon trading market are our research objects to comprehensively understand the interaction among them, from both macro and micro perspectives.Considering the importance of temporal heterogeneity and spillover direction in causation, we employ the time-varying Granger causality method to obtain bidirectional real-time identification. We find that green market returns exhibit a timevarying bidirectional causality with EPU over most of the sample period. In contrast, green markets are more a risk spillover than a recipient. Notably, this causality is vulnerable to exogenous financial risks, especially structural changes caused by the COVID-19 pandemic. Overall, this paper provides insights into the deep-seated causes of price fluctuations, volatile market uncertainty, and the interaction mechanism between them, as well as implications for market participants and policymakers.

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Section: Literature Reviewmentioning

confidence: 99%

Exploring the bidirectional causality between green markets and economic policy: evidence from the time-varying Granger test

Wang

Ren

et al. 2022

Environ Sci Pollut Res

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“…The use of detailed sectoral and regional models instead of their aggregated simplified versions also enables us to account for critically important local details. Similar computerized decentralized "negotiation" processes between distributed models (agents) have been developed for the design of robust carbon trading markets (e.g., [30] and references therein) and for the allocation of water quotas (e.g., [31]). The linkage procedure can be considered as a new machine learning algorithm, namely, as a general endogenous reinforced learning problem of how software agents (models) take decisions in order to maximize the cumulative reward (total welfare) [32].…”

Section: Introductionmentioning

confidence: 99%

Linking Distributed Optimization Models for Food, Water, and Energy Security Nexus Management

Ermoliev,

Zagorodny,

Bogdanov

et al. 2022

Sustainability

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Traditional integrated modeling (IM) is based on developing and aggregating all relevant (sub)models and data into a single integrated linear programming (LP) model. Unfortunately, this approach is not applicable for IM under asymmetric information (ASI), i.e., when “private” information regarding sectoral/regional models is not available, or it cannot be shared by modeling teams (sectoral agencies). The lack of common information about LP submodels makes LP methods inapplicable for integrated LP modeling. The aim of this paper is to develop a new approach to link and optimize distributed sectoral/regional optimization models, providing a means of decentralized cross-sectoral coordination in the situation of ASI. Thus, the linkage methodology enables the investigation of policies in interdependent systems in a “decentralized” fashion. For linkage, the sectoral/regional models do not need recoding or reprogramming. They also do not require additional data harmonization tasks. Instead, they solve their LP submodels independently and in parallel by a specific iterative subgradient algorithm for nonsmooth optimization. The submodels continue to be the same separate LP models. A social planner (regulatory agency) only needs to adjust the joint resource constraints to simple subgradient changes calculated by the algorithm. The approach enables more stable and resilient systems’ performance and resource allocation as compared to the independent policies designed by separate models without accounting for interdependencies. The paper illustrates the application of the methodology to link detailed energy and agricultural production planning models under joint constraints on water and land use.

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“…Since 2000, both climate change mitigation and appropriate handling of toxic chemical substances have been subject to strong international demand (Ermoliev et al, 2015). These policy trends are reflected in increasing environmental patent application shares.…”

Section: The Clarification Of Environmental Technology Was Introducedmentioning

confidence: 99%

Research and development strategy for environmental technology in Japan: A comparative study of the private and public sectors

Fujii

Managi

2016

Technological Forecasting and Social Change

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Environmental protection technology plays an important role in a sustainable society, simultaneously promoting economic development and pollution control. This study examines the determinants of technology inventions related to environmental protection in Japan. We use patent application data in a decomposition analysis framework. We find that environmental patent applications increase according to the prioritization of environmental patents by private companies and according to efficiency improvements in patent applications in the public sector. Additionally, patent applications related to emissions trading increased rapidly among private companies, mainly due to their increased priority after 2005. The different determinants of environmental technologies between the private and public sectors are useful for formulating effective policies to promote environmental innovation.

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Integrated model for robust emission trading under uncertainties: Cost-effectiveness and environmental safety

Cited by 12 publications

References 19 publications

Exploring the bidirectional causality between green markets and economic policy: evidence from the time-varying Granger test

Exploring the bidirectional causality between green markets and economic policy: evidence from the time-varying Granger test

Linking Distributed Optimization Models for Food, Water, and Energy Security Nexus Management

Research and development strategy for environmental technology in Japan: A comparative study of the private and public sectors

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