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Search Results (1,102)

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Keywords = Emission Trading System

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24 pages, 833 KB  
Article
Task Embedding Under Carbon Pricing: How China’s National Carbon Emissions Trading System Reshapes Green Jobs Within Firms
by Shan Li and Luanye Feng
Sustainability 2026, 18(13), 6470; https://doi.org/10.3390/su18136470 (registering DOI) - 25 Jun 2026
Abstract
As a key market-based instrument for low-carbon transition, China’s national carbon emission trading market facilitates emission abatement and reshapes labor allocation in regulated firms. Based on the task-based framework, a task embedding hypothesis is proposed. Restricted by organizational adjustment costs, firms tend to [...] Read more.
As a key market-based instrument for low-carbon transition, China’s national carbon emission trading market facilitates emission abatement and reshapes labor allocation in regulated firms. Based on the task-based framework, a task embedding hypothesis is proposed. Restricted by organizational adjustment costs, firms tend to integrate green compliance tasks into existing roles instead of massively establishing specialized green positions. Using 13 million job postings and matched financial data of Chinese A-share listed firms from 2016 to 2024, this study regards the launch of the national carbon market as a quasi-natural experiment and adopts a difference-in-differences (DID) approach. The results indicate that the carbon market raises the green job share of regulated enterprises by 4.7 percentage points. Such growth is not driven by newly built environmental departments. Management compliance posts decrease markedly, technical posts remain stable, while task-embedding positions combining traditional and green tasks dominate the growth effect. Heterogeneously, private enterprises and eastern China dominate the transformation, while state-owned enterprises lag behind and central and western regions witness a green job share decline. This study enriches task-based theory application in environmental regulation and provides empirical implications for sustainable green talent development and just transition policy design. Full article
(This article belongs to the Section Sustainable Management)
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41 pages, 5179 KB  
Article
IQTN: An Interpretable Quantile Temporal Network for Systems-Oriented Tail-Risk Forecasting and Early Warning in Carbon Allowance Market
by Tianli Huang and Grace T. R. Lin
Systems 2026, 14(7), 734; https://doi.org/10.3390/systems14070734 (registering DOI) - 24 Jun 2026
Abstract
The carbon emission allowance (CEA) market is a complex socio-technical and environmental-management system in which regulatory design, trading activity, liquidity conditions, and price volatility interact dynamically. Accurate systems-level tail-risk forecasting and early warning remain challenging because carbon-market losses are affected by nonlinear dependence, [...] Read more.
The carbon emission allowance (CEA) market is a complex socio-technical and environmental-management system in which regulatory design, trading activity, liquidity conditions, and price volatility interact dynamically. Accurate systems-level tail-risk forecasting and early warning remain challenging because carbon-market losses are affected by nonlinear dependence, episodic liquidity stress, and time-varying volatility. This study proposes an Interpretable Quantile Temporal Network (IQTN) as a systems-oriented risk-monitoring framework for China’s national CEA market. By integrating a feature-gating mechanism, a causal temporal convolutional encoder, and a non-crossing quantile output layer, IQTN directly models the conditional tail distribution of future carbon-market losses. The framework produces multi-horizon Value-at-Risk (VaR) and Conditional Value-at-Risk (CVaR) forecasts for 1-day, 5-day, and 10-day horizons and converts predicted tail risk into operational early-warning signals. Compared with historical simulation, EWMA, GARCH-type models, machine-learning quantile models, and deep temporal benchmarks, IQTN achieved the lowest 95% VaR pinball loss across all horizons, with values of 0.1765, 0.3958, and 0.5732. VaR backtesting showed empirical exceedance rates of 5.23%, 6.04%, and 6.94%, closest to the nominal 5% level. Interpretability analysis identified rolling volatility, maximum loss, intraday range, trading value, and illiquidity as key risk drivers. The temporal importance results also show that recent observations dominated the risk forecasts, suggesting that the risk state of the CEA market is highly sensitive to short-term market information. This supports the use of a short-horizon temporal network as a systems-oriented tool for carbon-market tail-risk monitoring and early warning. Full article
32 pages, 8625 KB  
Article
Research on the Comprehensive Energy Management Model for Ports with Land-Based Traffic Consideration
by Guanghui Yuan, Haobo Ni, Rui Wang, Dongping Pu and Huaiyu He
Energies 2026, 19(13), 2970; https://doi.org/10.3390/en19132970 (registering DOI) - 24 Jun 2026
Abstract
Port operators must now reduce emissions without weakening the reliability of cargo-handling and logistics services. Two load groups are especially important in this setting: vessels connected to shore-side facilities during berthing and heavy-duty vehicles working inside the terminal area. Their energy-use patterns shape [...] Read more.
Port operators must now reduce emissions without weakening the reliability of cargo-handling and logistics services. Two load groups are especially important in this setting: vessels connected to shore-side facilities during berthing and heavy-duty vehicles working inside the terminal area. Their energy-use patterns shape both dispatch stability and the carbon intensity of the port energy system. This paper therefore proposes an integrated port energy management model that jointly schedules wind power, photovoltaic generation, hydrogen production and storage, shore power, conventional purchases, berthed-vessel demand, and low-carbon heavy-duty transport demand. The model combines price-based demand response with a tiered carbon-trading penalty so that flexible electricity consumption and emission costs are reflected in the dispatch decision. Numerical simulations show that the joint use of demand response and the carbon-penalty mechanism lowers total economic dispatch cost by about 11.05% and reduces carbon emissions by 24.52%. The results indicate that coordinated renewable-energy and logistics-aware scheduling can improve the economic and environmental performance of port operations. Full article
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29 pages, 10314 KB  
Article
Comparative Life Cycle Assessment of Conventional and Carbonate-Melt-Based Flue Gas Desulfurization: Process-Based Inventory and Environmental Trade-Off Analysis
by Yuchan Ahn
Processes 2026, 14(13), 2046; https://doi.org/10.3390/pr14132046 (registering DOI) - 24 Jun 2026
Abstract
This study presents a comparative life cycle assessment (LCA) of a conventional wet flue gas desulfurization (FGD) process and two carbonate-melt-based FGD configurations (CMFGD-H and CMFGD-T), based on a functional unit of 1 kg SO2 removed. Process-level life cycle inventory (LCI) data [...] Read more.
This study presents a comparative life cycle assessment (LCA) of a conventional wet flue gas desulfurization (FGD) process and two carbonate-melt-based FGD configurations (CMFGD-H and CMFGD-T), based on a functional unit of 1 kg SO2 removed. Process-level life cycle inventory (LCI) data were generated using process simulation to ensure consistency and comparability across all systems. The results indicate that both CMFGD configurations significantly reduce environmental impacts in terms of global warming potential (GWP), fine particulate matter formation (PM), and terrestrial acidification (TA) compared to the conventional FGD process. Specifically, GWP decreased from 177.75 kg CO2 eq to 37.47 and 35.68 kg CO2 eq for CMFGD-H and CMFGD-T, respectively. Similar reductions were observed for PM and TA, primarily due to the elimination of limestone consumption, the absence of gypsum waste generation, and reduced direct process emissions. Hotspot analysis revealed that direct CO2 emissions dominate GWP across all configurations, whereas PM and TA are influenced by both direct emissions and upstream energy supply. In the CMFGD systems, environmental burdens shift from direct emissions toward upstream processes, particularly electricity and hydrogen production, highlighting the importance of energy system characteristics. However, a clear trade-off was identified in fossil resource scarcity (FRC), which increased significantly for CMFGD configurations (1.858–1.976 kg oil eq) compared to the conventional process (0.128 kg oil eq). This increase is primarily attributed to greater dependence on upstream energy supply chains, including fossil-based electricity, fuel, and hydrogen production. Sensitivity analysis further indicates that FRC is configuration-dependent, with hydrogen consumption dominating in CMFGD-H and CO utilization playing a more significant role in CMFGD-T. Nevertheless, even with reductions in these key parameters, FRC remains substantially higher than that of the conventional process, indicating that this impact is fundamentally governed by upstream energy dependency rather than individual process variables. The results demonstrate that CMFGD technologies offer substantial environmental benefits in terms of emission-related impacts but may increase resource depletion. These findings highlight that achieving sustainable CMFGD systems requires an integrated approach that combines process optimization with low-carbon and resource-efficient energy supply. Full article
(This article belongs to the Section Sustainable Processes)
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21 pages, 3076 KB  
Article
Research on Gas Concentration Prediction Method Based on Decoupling of Temporal Feature and Dynamic Relationship Reconstruction
by Yongle Yan, Yichao Zhao and Jiuwu Hui
Fire 2026, 9(7), 267; https://doi.org/10.3390/fire9070267 (registering DOI) - 24 Jun 2026
Abstract
Accurate multi-channel gas concentration prediction is very important for coal mine safety. However, the dynamic reconstruction of the sensor network often interferes with the input sequence. Existing models face a critical trade-off: channel-independent models are robust to sequence changes but ignore spatial coupling, [...] Read more.
Accurate multi-channel gas concentration prediction is very important for coal mine safety. However, the dynamic reconstruction of the sensor network often interferes with the input sequence. Existing models face a critical trade-off: channel-independent models are robust to sequence changes but ignore spatial coupling, while channel-dependent models overfit fixed sequences, leading to performance collapse during rearrangements. This paper presents a gas concentration prediction framework based on channel permutation-invariant interaction (CPiRi) to reconcile these limitations. CPiRi employs a spatio-temporal decoupling architecture where a frozen univariate pre-trained encoder independently extracts temporal features to ensure sequence robustness. Subsequently, a permutation-equivariant spatial module utilizes self-attention to model inter-channel gas emission relationships based on data content rather than positional indices. To achieve true permutation invariance, we introduce channel-shuffling regularization during training, forcing the model to learn content-driven relational reasoning. Evaluations on 15 real-world Chinese coal mine datasets demonstrate that CPiRi achieves highly competitive accuracy and consistently outperforms mainstream baselines in both prediction precision and structural adaptability. This study offers a robust technical pathway for gas monitoring in dynamic environments, substantially improving the reliability of intelligent mine safety systems. Full article
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18 pages, 1736 KB  
Article
A Hybrid Statistical-Machine Learning Framework for Risk-Based Screening of High-Frequency Carbon Emission Data Under Emissions Trading Systems
by Changyi Weng, Zhenghua Shu, Jueying Qian, Jingwei Fan and Xiaohu Luo
Atmosphere 2026, 17(6), 624; https://doi.org/10.3390/atmos17060624 (registering DOI) - 22 Jun 2026
Viewed by 76
Abstract
Reliable carbon emission data are essential for the effective operation of emissions trading systems (ETS), especially as China’s ETS expands to include energy-intensive industries. This study proposes a hybrid, risk-based anomaly detection framework for high-frequency CO2 emission data by cross-validating material-based emissions [...] Read more.
Reliable carbon emission data are essential for the effective operation of emissions trading systems (ETS), especially as China’s ETS expands to include energy-intensive industries. This study proposes a hybrid, risk-based anomaly detection framework for high-frequency CO2 emission data by cross-validating material-based emissions with flue gas-based monitoring data. Under normal operating conditions, the ratio of material-based to flue gas-based emissions is expected to remain within a relatively stable distribution. Potential high-risk periods can therefore be identified when this relationship is distorted or when local temporal patterns deviate from expected behavior. The framework combines Hartigan’s dip test with a window-based Random Forest (RF) classifier, which is suitable for continuous monitoring data that may exhibit temporal dependence. The framework was evaluated using 15-min CO2 emission data from a cement production facility, with simulations of anomaly magnitude, duration, and mode. Results show that the dip test performs well for long-lasting or strong anomalies, whereas the RF model is more sensitive to subtle, short-term deviations. In the integrated framework, 94.7% of anomalous periods were detected by at least one method and flagged as potential data-quality risks, whereas normal periods were not flagged, supporting its use to prioritize verification efforts. Full article
(This article belongs to the Section Air Quality)
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27 pages, 1001 KB  
Article
Sustainable Development and Carbon Dioxide Emissions in the GCC Region: Evidence from a Panel ARDL-PMG Analysis
by Abrar Saeed Bagalb, Nizar Harrathi and Md Fouad Bin Amin
Sustainability 2026, 18(12), 6356; https://doi.org/10.3390/su18126356 (registering DOI) - 22 Jun 2026
Viewed by 206
Abstract
This study examines the long- and short-run effects of sustainable development, economic growth, energy consumption, urbanization, investment and trade openness on Carbon Dioxide Emissions (CO2) in the GCC countries utilizing the PMG-ARDL approach by including the data spanning from 2000 to [...] Read more.
This study examines the long- and short-run effects of sustainable development, economic growth, energy consumption, urbanization, investment and trade openness on Carbon Dioxide Emissions (CO2) in the GCC countries utilizing the PMG-ARDL approach by including the data spanning from 2000 to 2022. In the short -run, the sustainable development index demonstrates a positive and substantial impact while it exhibits adverse long-run impact on CO2 emission. The study also indicates a U-shaped correlation between economic growth and emissions, contrasting with the conventional Environmental Kuznets Curve (EKC) where economic growth at lower income levels often leads to a reduction in emissions; however, income increases beyond around USD 29,942 per capita correlate with higher emissions. Besides, energy use is identified as the primary factor influencing emissions, reflecting global patterns that indicate greater energy usage, particularly from fossil fuels directly boosts emissions. Moreover, the urbanization intensifies this problem, resulting in higher energy demand and greater emissions. Additionally, the study finds that gross capital formation and investments in infrastructure contribute to emissions in the short run, though these effects diminish over time. Our results are robust as it similar to the outcomes obtained from dynamic panel-data System GMM. The GCC policymakers must utilize the sustainable development framework to legally mandate national planning towards low-carbon paths while balancing for short-term transition costs with significant long-run emission reductions. This necessitates the implementation of market-oriented carbon pricing to address the post-threshold U-shaped emissions rebound, the systematic elimination of fossil fuel subsidies to promote renewable energy adoption, and the enforcement of sustainable development regulations to mitigate urbanization pressures. Full article
(This article belongs to the Section Environmental Sustainability and Applications)
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19 pages, 3974 KB  
Systematic Review
Impact of Organic Fertilizer Substitution on Greenhouse Gas Emissions from Vegetable Production Systems: A Global Meta-Analysis
by Lusheng Li, Xiangjie Chen, Lili Zhao, Ling Zhong, Lixia Guo, Yuan Wang, Hongbo Xue, Haixia Qin, Minggui Zhang and Guanghua Yao
Agronomy 2026, 16(12), 1205; https://doi.org/10.3390/agronomy16121205 (registering DOI) - 21 Jun 2026
Viewed by 164
Abstract
Controversy persists on a global scale regarding the trade-offs between greenhouse gas (GHG) emissions, yield, the global warming potential (GWP), and GHG intensity (GHGI) following organic fertilizer substitution within vegetable cropping systems. This study aimed to quantify these effects under diverse conditions and [...] Read more.
Controversy persists on a global scale regarding the trade-offs between greenhouse gas (GHG) emissions, yield, the global warming potential (GWP), and GHG intensity (GHGI) following organic fertilizer substitution within vegetable cropping systems. This study aimed to quantify these effects under diverse conditions and elucidate the direct and indirect drivers governing these outcomes through a meta-analysis and structural equation modeling (SEM). We synthesized 655 paired observations from 69 published studies using random-effects meta-analysis, finding that organic fertilizer substitution significantly increased CH4 emissions and GWP compared to inorganic fertilizer controls. Although this was the general trend, organic fertilizer could reduce GWP under specific climatic and soil conditions by reducing N2O emissions, such as mean annual precipitation <400 mm or soil total nitrogen ≥3 g kg−1. These conditions were also associated with substantially higher yield and lower GHGI. Furthermore, SEM demonstrated that field management practices exerted significant direct effects on N2O emissions, GWP, and GHGI. Reductions in N2O emissions, GWP, and GHGI could be achieved with fertilizer application duration ≥10 years, total N application rate ≥300 kg ha−1, and field cultivation or plowing. GHGI was also reduced through yield enhancement under a moderate organic substitution rate (33–66%) or irrigation ≥300 mm. Our study provides a scientific basis for moving beyond universal recommendations towards precision organic management, which is essential for optimizing fertilization strategies to mitigate agricultural GHG emissions. Full article
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27 pages, 2122 KB  
Article
Scenario-Based Multi-Objective Optimisation for Rural Electrification Under Carbon, Economic, and Equity Constraints
by Desmond Eseoghene Ighravwe, Olubayo Babatunde, Oludolapo Akanni Olanrewaju and Emmanuel Adetiba
Energies 2026, 19(12), 2922; https://doi.org/10.3390/en19122922 (registering DOI) - 20 Jun 2026
Viewed by 181
Abstract
Rural electrification in Sub-Saharan Africa faces a trilemma: cutting carbon emissions, making it economically viable, and achieving fair access to energy for all. This paper develops a multi-objective framework that optimises carbon revenue, net present value (NPV), total energy supply, cooking fuel (firewood [...] Read more.
Rural electrification in Sub-Saharan Africa faces a trilemma: cutting carbon emissions, making it economically viable, and achieving fair access to energy for all. This paper develops a multi-objective framework that optimises carbon revenue, net present value (NPV), total energy supply, cooking fuel (firewood and LPG), health costs, and benefit to society. The model uses continuous decision variables: daily energy allocation among four sources (solar, generator, firewood, LPG) to three population groups (men, women, children). The case study is a rural community of 7000 people in Nigeria (Tier 1 energy consumers). Six policy scenarios are considered: baseline, high carbon price, low carbon price, microfinance, government subsidy and community cooperative. This study compared algorithms and identified a hybrid Non-dominated Sorting Genetic Algorithm and Particle Swarm Optimisation II as the most suitable algorithm for solving the formulated optimisation problem. It was found that NPV and unit cost of energy would increase to $175,500 and 26.4 ¢/kWh, respectively, by increasing the price of carbon from $8/ton to $12/ton. Firewood generates health savings and carbon revenue in the range of $4100–$12,270/year. Prices below $8/ton do not induce optimal reconfigurations in the system. The best energy supply (2825 kWh/day) and the lowest unsatisfied demand occur in the government subsidy scenario with the greatest disparity index, displaying an equity-efficiency trade-off. The framework shows that sustainable access to energy can be unlocked using strategic integration of carbon finance, valuation of health benefits and equity constraints. Full article
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30 pages, 2258 KB  
Article
A Multi-Criteria Evaluation of Biogas and Natural Gas Co-Firing in Greenhouse Heating Systems: Integrated Numerical Modeling with Multi-Objective Optimization and Life Cycle Assessment
by Hasan Mhd Nazha, Adnan Ali Ahmad and Mhd Ayham Darwich
Thermo 2026, 6(2), 48; https://doi.org/10.3390/thermo6020048 - 17 Jun 2026
Viewed by 200
Abstract
This study presents a numerical investigation of biogas–natural gas co-firing for greenhouse heating, integrating lumped-parameter energy balance, multi-objective optimization, and life cycle assessment (LCA) for a Syrian coast case study (48 dairy cows, 100 m2 greenhouse). Five blends (0–100% biogas) were evaluated [...] Read more.
This study presents a numerical investigation of biogas–natural gas co-firing for greenhouse heating, integrating lumped-parameter energy balance, multi-objective optimization, and life cycle assessment (LCA) for a Syrian coast case study (48 dairy cows, 100 m2 greenhouse). Five blends (0–100% biogas) were evaluated using a zero-dimensional model implemented in MATLAB R2024a (The MathWorks, Inc., Natick, MA, USA) and verified with Python (version 3.11, Python Software Foundation, Beaverton, OR, USA). The 70% biogas–30% natural gas blend exhibited the most favorable trade-off among conditionally feasible scenarios (requiring external biogas sourcing) with a model-predicted system thermal efficiency of 84.5% (LHV basis) and a model-estimated thermal NOx reduction of 75–85%, which represents a mathematical extrapolation beyond the experimentally validated range of 0–50% biogas and excludes prompt NOx (5–20% of total) and should be interpreted as an indicative trend requiring experimental confirmation. For self-sufficient operation using only on-site biogas production (24 m3 day−1), the maximum achievable blend is 32% biogas, offering a 13.8% cost reduction and a 13.5% GWP reduction. Pure biogas achieves a 41.5% GWP reduction and 48.5% lower daily operating costs under the assumption of expanded on-site production capacity but requires 3.3 times the current production volume. Multi-objective optimization reveals stakeholder-specific optima ranging from 50% to 91% biogas, with a robust compromise region of 65–75%. All predictions for NOx emissions above 50% biogas are mathematical extrapolations requiring experimental validation. For farms without access to external biogas markets, the 32% blend (self-sufficient optimum) is the currently implementable solution, offering a 13.8% cost reduction. For farms with access to regional biogas markets, the 70% blend represents the conditional techno-economic optimum, achieving a 15.3% cost reduction but requiring 29.12 m3 day−1 of external biogas procurement. Full article
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19 pages, 1078 KB  
Article
The Tourism–Energy–Trade Openness Nexus and Transport CO2 Emissions in the Middle East: Evidence from an ARDL Approach
by Fulwah Bin Surayhid, Jawaher Binsuwadan and Eman Alanzi
Sustainability 2026, 18(12), 6245; https://doi.org/10.3390/su18126245 - 17 Jun 2026
Viewed by 297
Abstract
Environmental degradation has intensified alongside rising carbon emissions driven by economic expansion, energy consumption, and transport activities. In recent decades, Middle Eastern economies have experienced substantial growth in tourism, trade openness, and energy use, raising concerns about their environmental consequences. This study investigates [...] Read more.
Environmental degradation has intensified alongside rising carbon emissions driven by economic expansion, energy consumption, and transport activities. In recent decades, Middle Eastern economies have experienced substantial growth in tourism, trade openness, and energy use, raising concerns about their environmental consequences. This study investigates the impact of tourism activity, energy consumption, and trade openness on transport-related CO2 emissions in ten Middle Eastern countries over the period 2000–2020. Data were obtained from the World Development Indicators (WDI) database of the World Bank. Using a panel autoregressive distributed lag (ARDL) framework, the analysis captures both short-run dynamics and long-run equilibrium relationships. To improve measurement robustness, tourism activity is proxied using two alternative indicators: international tourism expenditures (TEs) and international tourism receipts (TRs). The empirical results indicate that tourism activity and energy consumption significantly increase transport-related CO2 emissions in both the short and long run, while trade openness does not exert a statistically significant long-run effect. These findings suggest that tourism expansion and energy-intensive transport systems are key contributors to environmental pressure In the region, whereas the environmental impact of trade may be indirect or conditional. The study highlights the importance of integrating sustainable tourism policies and improving energy efficiency. In addition, it underscores the need to develop low-carbon transport strategies to support environmentally sustainable economic development in Middle Eastern economies. Full article
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33 pages, 20664 KB  
Article
Hydrogen Fuel Cells vs. Dynamic Wireless Charging for Heavy-Duty Transport: A Corridor-Level Techno-Economic Comparison
by Nicoletta Matera, Ludovica Grasso, Michela Longo and Wahiba Yaïci
Future Transp. 2026, 6(3), 130; https://doi.org/10.3390/futuretransp6030130 - 17 Jun 2026
Viewed by 136
Abstract
Decarbonizing heavy-duty road transport requires comparing zero-emission options to guide infrastructure investments along strategic corridors. This study develops a scenario-based techno-economic model to evaluate hydrogen fuel cell trucks (HFCTs) and battery electric trucks supported by dynamic wireless power transfer (DWPT) on a 100 [...] Read more.
Decarbonizing heavy-duty road transport requires comparing zero-emission options to guide infrastructure investments along strategic corridors. This study develops a scenario-based techno-economic model to evaluate hydrogen fuel cell trucks (HFCTs) and battery electric trucks supported by dynamic wireless power transfer (DWPT) on a 100 km segment of Italy’s A4 motorway in 2030 and 2050 scenarios. The framework integrates traffic flows, vehicle archetypes, infrastructure sizing, and end-to-end energy chains (power-to-hydrogen-to-wheel for hydrogen and grid-to-wheel for WPT) to estimate capital and operating costs, efficiencies, and energy demand. Results show that hydrogen refueling infrastructure requires lower initial investment (approximately €60 million CAPEX and €20 million annual OPEX) than wireless charging systems (€80 million CAPEX and €15 million OPEX). However, WPT achieves significantly higher grid-to-wheel efficiency (96% vs. 62%) and lower per-vehicle energy demand (18 MWh/year vs. 25 MWh/year). These findings highlight a fundamental trade-off: hydrogen solutions offer operational flexibility and are better suited to long-haul or low-density contexts, while WPT systems are more efficient and become increasingly competitive in high-traffic corridors with high infrastructure utilization. Overall, the results suggest that no single technology universally dominates and that optimal deployment depends on traffic density, infrastructure usage, and system integration. A combined implementation of hydrogen and wireless charging technologies may provide the most effective pathway to balance efficiency, flexibility, and cost in future heavy-duty transport systems. Full article
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32 pages, 428 KB  
Article
Green Transition in Europe: The Effectiveness of Environmental Taxes and Green Innovation in Reducing CO2 Emissions
by Jafar Babakhonov, Hilola Qosimova, Samariddin Makhmudov, Yuldoshboy Sobirov, Feruza Murodkhujayeva, Daniyor Kurbanov and Bakhodir Ruzmetov
Economies 2026, 14(6), 231; https://doi.org/10.3390/economies14060231 - 15 Jun 2026
Viewed by 258
Abstract
This study examines the determinants of carbon dioxide (CO2) emissions across 25 European Union countries over the period 2000–2021, with particular emphasis on the roles of environmental taxation and green innovation in shaping environmental sustainability. The analysis is grounded in ecological [...] Read more.
This study examines the determinants of carbon dioxide (CO2) emissions across 25 European Union countries over the period 2000–2021, with particular emphasis on the roles of environmental taxation and green innovation in shaping environmental sustainability. The analysis is grounded in ecological modernization theory, endogenous growth theory, and the Environmental Kuznets Curve hypothesis, which collectively explain the long-run and dynamic interactions between environmental policy, economic activity, structural transformation, and environmental outcomes. To ensure robust empirical inference, this study applies a comprehensive econometric framework that accounts for cross-sectional dependence, heterogeneity, non-stationarity, cointegration, and endogeneity. The empirical strategy begins with Pesaran cross-sectional dependence tests and slope heterogeneity diagnostics, followed by second-generation panel unit root tests (Pesaran CADF/CIPS) and Westerlund cointegration tests to establish the existence of long-run equilibrium relationships among the variables. Long-run coefficients are estimated using Fully Modified Ordinary Least Squares (FMOLS), Dynamic Ordinary Least Squares (DOLS), Canonical Cointegrating Regression (CCR), and Common Correlated Effects Mean Group (CCEMG) estimators. In addition, the Panel Autoregressive Distributed Lag (ARDL) model is employed to capture both short-run dynamics and long-run adjustment processes, while the System Generalized Method of Moments (System GMM) estimator addresses potential endogeneity, reverse causality, omitted variable bias, and dynamic persistence in CO2 emissions. The empirical results indicate that environmental taxation has a positive and statistically significant association with CO2 emissions, suggesting that current fiscal environmental policies in EU-25 countries may not yet be sufficiently effective in discouraging pollution-intensive activities. In contrast, green innovation is found to significantly reduce CO2 emissions, underscoring the critical role of innovation-driven environmental investment and technological progress in improving environmental quality. Economic growth, exports, and urbanization are associated with higher emissions, while imports contribute to emission reductions, reflecting differences between domestic production-based effects and trade-related structural adjustments. The System GMM results further confirm the persistence of CO2 emissions over time and validate the robustness of the long-run relationships identified by alternative estimators. Likewise, the CCEMG and Panel ARDL results support the stability and consistency of the findings under conditions of cross-sectional dependence and heterogeneous country dynamics. Taken together, the results highlight the importance of integrating environmental taxation with green innovation policies, innovation-driven investment, and sustainable trade policies to achieve long-term emission reductions in the European Union. This study contributes to the environmental economics literature by providing robust empirical evidence using second-generation panel econometric techniques that explicitly address cross-sectional dependence, heterogeneity, and endogeneity in the analysis of environmental sustainability. Full article
22 pages, 1755 KB  
Article
Dynamic Optimization of Incoming Quality Control Policies for Cost, Carbon, and Energy Reduction Using Bayesian Reinforcement Learning
by David Massetti, Mehdi Raoofi, Tiziano Miroglio, Marco Mosca and Flavio Tonelli
Sustainability 2026, 18(12), 6094; https://doi.org/10.3390/su18126094 - 13 Jun 2026
Viewed by 322
Abstract
The transition towards sustainable manufacturing necessitates complex optimization that integrates economic goals with environmental factors, such as energy consumption and greenhouse gas emissions. This research addresses the critical challenge of optimizing the Incoming Quality Control (IQC) policy for raw material batches. The primary [...] Read more.
The transition towards sustainable manufacturing necessitates complex optimization that integrates economic goals with environmental factors, such as energy consumption and greenhouse gas emissions. This research addresses the critical challenge of optimizing the Incoming Quality Control (IQC) policy for raw material batches. The primary objective is formulated as a multi-criteria control problem that jointly minimizes the weekly final product cost, carbon footprint, and energy consumption. To handle sequential decision making under uncertainty, we adopt a scalarized reinforcement learning (RL) reward that combines these objectives into a single value function and explores different trade-offs through alternative weight configurations. To effectively handle the uncertainty in incoming quality and the sequential decision making required for dynamic control, the optimization problem is modeled as a Bayesian Adaptive Markov Decision Process (BAMDP). To maintain computational tractability despite the continuous belief space inherent in the BAMDP formulation, we employ a Deep Q-Network (DQN) architecture acting as an approximate dynamic programming solver. The Bayesian framework represents model uncertainty explicitly, updates beliefs as new inspection evidence becomes available, and allows prior domain knowledge on supplier quality to be incorporated into the learning process. The BAMDP formulation is used to learn a set of adaptive inspection policies that adjust the IQC strategy over time to achieve conflicting goals: reducing inspection costs while maintaining standard quality, minimizing energy consumption, and lowering CO2-equivalent emissions. The goal is to find robust policies that balance these trade-offs under different quality and demand conditions. This methodology aligns with the principles of Industry 5.0 by leveraging advanced artificial intelligence (AI) methods, such as reinforcement learning (RL), coupled with a stochastic simulation of the production system, based on a geometric/physical model of the component’s tolerance chains, to support decision-makers in designing and assessing sustainable IQC strategies. Comparative simulations on the case study, including a benchmark against ISO 2859-1 sampling plans, confirm that this dynamic and risk-aware optimization paradigm can reduce overall cost, energy use, and environmental impact across various quality conditions, while preserving outgoing quality. Full article
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27 pages, 2027 KB  
Article
Multi-Scenario Decision-Making for Carbon Asset Management of Cement Industry Under China’s New Unified National Carbon Market
by Yiwen Zhang, Lu Yu, Yufan Dong, Boyan Zou and Yue Liu
Sustainability 2026, 18(12), 6054; https://doi.org/10.3390/su18126054 - 12 Jun 2026
Viewed by 160
Abstract
The inclusion of the cement industry into China’s national carbon emissions trading system in 2025 has fundamentally altered the compliance environment for high-emission enterprises, transforming carbon allowances from passive regulatory instruments into dynamic assets whose management directly affects financial performance. We develop a [...] Read more.
The inclusion of the cement industry into China’s national carbon emissions trading system in 2025 has fundamentally altered the compliance environment for high-emission enterprises, transforming carbon allowances from passive regulatory instruments into dynamic assets whose management directly affects financial performance. We develop a multi-scenario carbon asset management decision model tailored to the intensity-based benchmarking mechanism adopted by the national market. The model centres on the quota surplus-deficit variable EA4, which is computed from enterprise-level emission intensity relative to the industry benchmark, and decomposes the management problem into sequential selling and buying subproblems linked by coupled decision boundaries. A systematic parameter framework is constructed, and the model is applied to two cement enterprises—Enterprise A, a leading producer with a clear allowance surplus, and Enterprise B, a mid-tier producer operating near the benchmark boundary—through historical backtesting over the 2024–2025 period. Three principal findings emerge. First, the intensity benchmarking mechanism creates a dual-leverage effect whereby a 1.4% improvement in emission intensity (from 0.8112 to 0.8000 t/t) increases the quota surplus by 27%, a nonlinearity not captured by conventional compliance-cost models. Second, the model-driven strategy outperforms traditional experience-based approaches by 36.8% (baseline scenario, +95.20 vs. +69.58 MRMB) and 37.3% (risk scenario, −44.55 vs. −71.08 MRMB), with the improvement rate remaining consistent across both enterprises, suggesting that trading timing outweighs instrument selection in determining compliance cost outcomes. Third, dynamic CEA–CCER allocation captures an incremental 2.33 MRMB through the exploitation of a transient price inversion, a gain invisible to single-instrument strategies. Sensitivity analysis confirms that the relative advantage is robust to carbon price variations (±30%) and CCER offset caps (2–10%), while emission intensity and carry-over allowances represent the most consequential parameters for strategy direction, with EA4 crossing zero near the industry benchmark (I ≈ 0.85). The framework provides actionable decision support for cement and other high-emission enterprises navigating the unified carbon market, and contributes a quantitative methodology to the emerging field of environmental management accounting. This study contributes to Sustainable Development Goal 13 (Climate Action), Goal 7 (Affordable and Clean Energy), and Goal 9 (Industry, Innovation, and Infrastructure) by providing operational tools for decarbonisation in carbon-intensive industries. Full article
(This article belongs to the Special Issue Sustainable Development: Integrating Economy, Energy and Environment)
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