Research on China’s cap-and-trade carbon emission trading scheme: Overview and outlook

Jiang, Jingjing; Xie, Dejun; Ye, Bin; Shen, Bo; Chen, Zhanming

doi:10.1016/j.apenergy.2016.06.100

Cited by 220 publications

(74 citation statements)

References 81 publications

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“…Thus, this policy is widely adopted by many countries [1,2]. For example, the European Union implemented cap-and-trade policy in 2005, then the whole regions of Tokyo and California began testing this system [3]. The main objective of the Paris Agreement is to control the global average temperature increase in this century to less than 2 degrees Celsius [4].…”

Section: Introductionmentioning

confidence: 99%

Research on Operation and Financing Strategy of an Emission-Dependent Supply Chain under Variable Transportation Fee Strategy

Zhang

Yao

2019

Sustainability

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Under the carbon cap-and-trade mechanism, we consider an emission-dependent supply chain consisting of a supplier, a manufacturer, and a 3PL firm that adopts variable transportation fee strategy. Five models on the basis of the supplier and manufacturer with or without capital constraints are considered to discuss members’ optimal decisions. The insights are obtained as follows. First, the ordering quantity under 3PL financing service is larger than that under two firms are well-funded when the transportation fee or carbon emission is less than a certain constant. The variable transportation fee strategy and members’ carbon emission reduction behavior are beneficial to each supply chain participant. Second, the carbon emissions of members decide whose capital constraint is more beneficial to 3PL firm, and 3PL prefers to cooperate with a medium rich manufacturer (rich supplier). Third, the external financing modes are analyzed to get the 3PL financing service can create new value for the manufacturer and 3PL if the transportation fee is below a threshold, and this threshold increases with the manufacturer’s carbon emission. When the transportation fee is larger than a threshold, a capital-constrained supplier will choose bank financing, and this threshold decreases with the supplier’s carbon emission. Finally, we demonstrate that the manufacturer’s loss aversion (carbon cap) can increase (decrease) its bankruptcy threshold.

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Section: Introductionmentioning

confidence: 99%

Research on Operation and Financing Strategy of an Emission-Dependent Supply Chain under Variable Transportation Fee Strategy

Zhang

Yao

2019

Sustainability

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“…This classification is very significant for the construction of China's national carbon market. The coverage scope of China's seven ETS pilots is different, but the same point is that all of the pilots include the high emission sectors first [30]. The experience from EUETS is that covering high emission sectors first is conducive to realize the national reduction target and reduce management costs [55].…”

Section: The Coverage Scope and Access Order Of China' Unified Carbonmentioning

confidence: 99%

“…Oestreich and Tsiakas [29] find that there is a large and statistically significant carbon premium in stock returns, which is primarily driven by the free allocation of carbon quotas. Therefore, the Chinese government should allocate the carbon quotas for free in the first phase to reduce the firms' resistance and emission reduction cost [30].…”

Section: Literature Reviewmentioning

confidence: 99%

The Allocation of Carbon Intensity Reduction Target by 2020 among Industrial Sectors in China

Yang

Liu

et al. 2017

Sustainability

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Abstract:In order to realize the national carbon intensity reduction target, China has decided to establish a unified national carbon emissions trading market in 2017. At the initial stage, eight industrial sectors will be covered in the carbon market and the other industrial sectors will be included gradually. The aim of this paper is to study the issue of how to allocate the carbon emissions quotas among different industrial sectors fairly and effectively. We try to provide theoretical support for how to determine the coverage scope and access order of the carbon market. In this paper, we construct a comprehensive reduction index based on indicators of equity and efficiency principle. We adopt entropy method to get the objective weights of the three indicators. Then, an allocation model is developed to determine each sector's reduction target for the year of 2020. The result shows that our allocation scheme based on entropy method is more reasonable, and our allocation method will promote the equity of carbon quotas allocation and the efficiency of carbon emissions. With consideration of China's current economic situation and industrial background, we discuss some policy implications regarding the construction of carbon market.

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“…Some scholars have explored the effects of the EU ETS [23][24][25]. On the other hand, the literature provides an overview of China's ETS [1,3,26], particularly allowance allocation [27,28], MRV [29], carbon price [30], and carbon credit [31] in the context of China's pilot ETS. Studies have also been conducted on the effects of China's ETS on emission reduction [32].…”

Section: Introductionmentioning

confidence: 99%

“…Carbon emission trading schemes (ETS) aim at realizing emission reduction targets proposed in the 1997 Kyoto Protocol [1][2][3][4]. ETS were also proposed to counter climate issues raised during the 2015 Paris Climate Summit and 2016 Marrakech Climate Summit.…”

Section: Introductionmentioning

confidence: 99%

Comparison of Carbon Emission Trading Schemes in the European Union and China

Zhang

Liu

2017

Climate

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Given the growing evidence and scientific consensus on global climate change, carbon emission trading schemes (ETS) have been deemed crucial in mitigating the problem. Therefore, this study compares the mechanisms of ETS in the European Union with those in China. The results indicate similarities in cap determination, the coverage and calculation method of allowance allocation, trading participants and allowance category, offset credit, and MRV. On the other hand, the allocation method and supervision of allowance allocation, allowance formats and trading methods, market risk management, market linkage mechanism, and legislation security evidently appear to vary. However, the results were unable to identify which ETS is absolutely good or bad due to the political, economic, and institutional contexts and the varying developmental phases. Eventually, drawing on these findings, we conclude with implications for the promotion of ETS.

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Research on China’s cap-and-trade carbon emission trading scheme: Overview and outlook

Cited by 220 publications

References 81 publications

Research on Operation and Financing Strategy of an Emission-Dependent Supply Chain under Variable Transportation Fee Strategy

Research on Operation and Financing Strategy of an Emission-Dependent Supply Chain under Variable Transportation Fee Strategy

The Allocation of Carbon Intensity Reduction Target by 2020 among Industrial Sectors in China

Comparison of Carbon Emission Trading Schemes in the European Union and China

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