Search Results (58)

As a pivotal market-based instrument for achieving sustainable development and carbon neutrality goals, China’s Energy-Use Rights Trading Policy (EURT) was implemented to incentivize corporate energy efficiency and emission reduction. Using the difference-in-differences (DID) method, this study empirically examines the impact of China’s 2016 pilot policy on energy-use rights trading on corporate earnings management, investigating micro-level data from China’s A-share listed companies between 2010 and 2022. The main results show that EURT significantly intensifies earnings management. The effect is more pronounced in private enterprises, non-Big-Four-audited firms, firms within industries characterized by high concentration, and firms located in regions characterized by lower environmental fiscal expenditure and weaker waste gas treatment capacity. Mechanism analyses reveal that the policy operates through tightened financing constraints and elevated financial risk. Importantly, environmental investment mitigates this effect, while regulatory pressure amplifies it. These findings highlight trade-offs in sustainable policy design, demonstrating how environmental instruments may compromise financial integrity, and underscore the need for integrated governance approaches. Full article

As a new engine for promoting the high-quality development of China’s foreign trade, digital trade provides new opportunities for enterprises’ low-carbon transition. Based on samples of export industrial enterprises listed in China from 2010 to 2023, this paper uses the digital trade policy represented by the cross-border e-commerce (CBEC) comprehensive pilot zone as a quasi-natural experiment and employs a multi-period difference-in-differences (DID) model to empirically analyze the policy effect of digital trade development on firms’ carbon emission intensity. This research finds that (1) digital trade policies represented by the pilot policy can significantly reduce firms’ carbon emission intensity and (2) the pilot policy can achieve the emission intensity reduction effect through dual paths of “internal innovation deepening” and “external environment optimization”. The internal innovation deepening refers to the green awareness formation and green production implementation of enterprises. External environment optimization refers to financial support resources for enterprises and institutional safeguards for innovation rights of enterprises. (3) Further analysis indicates that the policy effects are more pronounced in firms with higher risk preference, with larger scale, in heavily polluting and high-tech industries, and in the central and northeastern regions. Additionally, the policy demonstrates synergistic effects with the Belt and Road Initiative and exhibits significant spatial spillover effects, benefiting neighboring non-pilot areas. Full article

As the scale of distributed resources continues to expand, decentralization and multi-agent characteristics bring significant challenges to low-carbon dispatching and market participation of power grids. To this end, this paper proposes a collaborative optimization scheduling framework with distributed resource aggregators (DRAs) as the main body, innovatively coupling carbon Emission trading (CET) with electric vehicle carbon quota participation, and the renewable energy quota (RPS) with tradable green certificate (TGC) transaction as the carrier, as well as constructing the connection path between the two to realize the integrated utilization of environmental rights and interests. Based on the ε-constraint method, a bi-objective optimization model of economic cost minimization and carbon emission minimization is established, and a multi-dimensional evaluation system, covering the internal and overall operation performance of the aggregator, is designed. The example shows that, under the proposed CET-RPS coupling mechanism, the total cost of DRA is about 23.4% lower than that of the existing mechanism. When the carbon emission constraint is relaxed from 2700 t to 3000 t, the total cost decreases from CNY 2537.32 to CNY 2487.74, indicating that the carbon constraint has a significant impact on the marginal cost. This study provides a feasible path for the large-scale participation of distributed resources in low-carbon power systems. Full article

Promoting investment in Carbon Capture, Utilization, and Storage (CCUS) is essential for mitigating carbon emissions and combating climate change. This paper explores the uncertainties and environmental benefits associated with CCUS, integrating the frameworks of pollution right trading and carbon trading. A model for coal-fired power plant investment decisions on CCUS is developed and solved using the Least Squares Monte Carlo method, with results being robust beyond approximately 6000 simulation paths. Applied to a 600 MW ultra-supercritical coal-fired power plant in Shaanxi, China, our findings indicate that investment leads to a loss of CNY 1200.4 million in the absence of both environmental benefits and market trading mechanisms. A positive investment value of CNY 462 million with an optimal timing in the 10th year is achieved only when both environmental benefits and trading mechanisms are present. Furthermore, with only carbon trading, the option value is marginal (CNY 64.8 million), and investment remains unprofitable without government subsidies. Sensitivity analysis highlights that government subsidies significantly impact investment motivation. An initial carbon price of approximately CNY 95 per ton triggers immediate investment, while higher capture proportions and utilization levels positively affect decision-making. This study provides analytical tools for investment decisions in CCUS across multiple scenarios, serving as a reference for policymakers in designing emission reduction strategies. Full article

As global climate change intensifies with unprecedented urgency, nations worldwide have increasingly adopted market-based environmental regulatory instruments to advance carbon reduction objectives. In 2017, China launched energy rights trading pilots, thereby providing a crucial policy instrument for controlling total energy consumption at its source. However, the specific impacts and transmission pathways through which this system influences corporate carbon reduction behavior remain insufficiently explored through rigorous empirical investigation. Drawing upon panel data from heavy-polluting companies listed on the Shanghai and Shenzhen A-share markets, this study employs a difference-in-differences methodology to identify the causal effects of energy rights trading systems on corporate carbon reduction. Our findings reveal that energy rights trading systems significantly reduce corporate carbon emission intensity, generating pronounced emission reduction effects. Further mechanism analysis demonstrates that this system operates through two principal pathways: first, by promoting increased green investment among enterprises, whereby short-term emission reductions are achieved through procurement of energy-saving equipment and environmental protection facilities, and second, by stimulating corporate green technological innovation, whereby long-term sustainable emission reductions are realized through the development of energy-saving technologies and clean processes. Additionally, the research reveals that enterprises with lower financing constraints and stronger supply chain bargaining power respond more actively to policy implementation, with policy effects exhibiting significant heterogeneity. This study not only enriches the theoretical understanding of market-based environmental regulatory policy effects but also provides crucial empirical evidence for improving the energy rights trading system design and enhancing policy implementation effectiveness, thereby offering important policy insights for promoting corporate green transformation and achieving “dual carbon” objectives. Full article

As global climate change progresses and the “dual carbon” strategy advances, market-based carbon emission trading systems are of great theoretical and practical importance for green technology innovation. In this paper, A-share listed advanced manufacturing enterprises in pilot regions from 2010 to 2023 are taken as samples, and a multi-period difference-in-differences (DID) method is employed to probe into the mechanism by which this policy influences green technology innovation in China’s advanced manufacturing enterprises. Empirical analysis reveals that carbon emission trading exerts a remarkable promoting impact on green technology innovation in China’s advanced manufacturing enterprises. The study indicates that the policy’s influence on enterprises is indirect; specifically, government policies encourage enterprises to raise their R&D investment, thus facilitating green technology innovation to some degree. Moreover, carbon emission rights prices play a positive moderating role, which is vital for maintaining the policy’s incentive function in long-term green transition—within a reasonable range, carbon prices can enhance the policy’s promoting effect. In addition, enterprise-specific features like company size and asset-liability ratio have certain effects on enterprises’ green technology innovation behaviors. The research findings will offer a theoretical foundation and practical reference for optimizing China’s carbon market mechanism in advanced manufacturing and advancing the green transformation of China’s advanced manufacturing industry. Full article

As one of the main sources of global greenhouse gas emissions, the low-carbon transformation and emission reduction in the construction industry are inevitable requirements for addressing climate change. Under cap-and-trade regulations, Carbon emission rights have become a key production factor. However, the price of carbon emission rights is highly random. Taking the EU carbon market in 2024 as an example, the carbon price fluctuated by more than 35%, soaring from 65 euros per ton to 80 euros per ton and then falling back. Such sharp fluctuations not only increase the cost uncertainty of enterprises but also complicate the investment decisions for emission reduction. Therefore, enterprises can enhance the flexibility of carbon emission rights trading decisions through option strategies, helping them hedge against the risks of carbon price fluctuations, and at the same time improve market liquidity and risk management capabilities. Against this background, based on the carbon cap-and-trade policy, this paper introduces the two-way option strategy into the construction supply chain game model composed of general contractors and subcontractors, and studies to obtain the optimal carbon reduction volume, carbon option purchase volume, maximum expected profit of general contractors, subcontractors and profit distribution ratio. This study shows that two-way options play a crucial role in optimizing supply decision-making and emission reduction strategies. Under the decentralized model, emission reduction responsibilities are often shifted to subcontractors by the general contractor, resulting in a decline in overall mitigation effectiveness. Furthermore, appropriately lowering the carbon emission benchmark can strengthen enterprises’ incentives for emission reduction and significantly enhance the profitability of the supply chain. The study further suggests that general contractors should enhance their competitiveness by developing environmentally friendly technologies and improving their ability to reduce emissions on their own. Meanwhile, subcontractors need to actively participate in the collaborative efforts through revenue-sharing contracts. This study reveals the strategic value of two-way carbon options in construction supply chain carbon trading and provides theoretical support for the formulation of carbon market policies, contributing to the low-carbon transition of the construction supply chain. Full article

This paper addresses the synergy between environmental and economic benefits in the green power trading market by constructing a collaborative game model for environmental rights value and electricity energy value. Based on this, a model for maximizing the benefits of flexible resource operation is proposed. Through the combination of non-cooperative and cooperative games, the conflict and synergy mechanisms of multiple stakeholders are quantified, and the Shapley value allocation rule is designed to achieve Pareto optimality. Simultaneously, considering the spatiotemporal regulation capability of flexible resources, dynamic weight adjustment, cross-period environmental rights reserve, and risk diversification strategies are proposed. Simulation results show that under the scenario of a carbon price of 50 CNY/ton (≈7.25 USD/ton) and a peak–valley electricity price difference of 0.9 CNY/kWh (≈0.13 USD/kWh), when the environmental weight coefficient α = 0.5, the total revenue reaches 6.857 × 10⁷ CNY (≈9.94 × 10⁶ USD), with environmental benefits accounting for 90%, a 15.3% reduction in carbon emission intensity, and a 1.74-fold increase in energy storage cycle utilization rate. This research provides theoretical support for green power market mechanism design and resource optimization scheduling under “dual-carbon” goals. Full article

In the context of the global response to climate change and the active promotion of energy transformation, a number of low-carbon policies coupled with the development of synergies to help power system transformation is an important initiative. However, the insufficient articulation of the green power market, tradable green certificate (TGC) market, and carbon emission trading (CET) mechanism, and the ambiguous policy boundaries affect the trading decisions made by its market participants. Therefore, this paper systematically analyses the composition of the main players in the electricity-CET-TGC markets and their relationship with each other, and designs the synergistic mechanism of the electricity-CET-TGC markets, based on which, it constructs the optimal profit model of the thermal power plant operators, renewable energy manufacturers, power grid enterprises, power users and load aggregators under the electricity-CET-TGC markets synergy, and analyses the behavioural decision-making of the main players in the electricity-CET-TGC markets as well as the electric power system to optimise the trading strategy of each player. The results of the study show that: (1) The synergistic mechanism of electricity-CET-TGC markets can increase the proportion of green power grid-connected in the new type of power system. (2) In the selection of different environmental rights and benefits products, the direct participation of green power in the market-oriented trading is the main way, followed by applying for conversion of green power into China certified emission reduction (CCER). (3) The development of independent energy storage technology can produce greater economic and environmental benefits. This study provides policy support to promote the synergistic development of the electricity-CET-TGC markets and assist the low-carbon transformation of the power industry. Full article

The countries and regions along the Belt and Road are rich in wetland carbon sink resources, crucial for mitigating greenhouse gas emissions and achieving global emission reduction. This paper uses policy analysis and desk research to analyze the overview of wetland carbon sinks in these countries. It explores the necessity of legal system construction for their carbon sink trading. This study finds that smooth trading requires clear property rights definition rules, efficient market trading entities, definite carbon sink trading price rules, financial support aligned with the Equator Principles, and support from biodiversity-compatible environmental regulatory principles. Currently, there are still obstacles in wetland carbon sink trading in the Belt and Road, such as property rights confirmation, an accounting system, an imperfect market trading mechanism, and the coexistence of multiple trading risks. Therefore, this paper first proposes to clarify the goal of the legal guarantee mechanism. Efforts should focus on promoting a consensus on wetland carbon sink ownership and establishing a unified accounting standard system; simultaneously, the relevant departments should conduct field investigations and monitoring, standardize the market order, and strengthen government financial support and funding guarantees. Full article

This research examines the governance of carbon rights in comparison with 7 other countries, focusing on Vietnam’s carbon markets and Reducing Emissions from Deforestation and Forest Degradation in Developing Countries implementation. Through constitutional theory and comparative analysis, the study explores carbon rights and their governance frameworks. It utilizes surveys, in-depth interviews, and literature reviews to scrutinize governance mechanisms. A comparative analysis of Vietnam with countries such as Australia, New Zealand, Sweden, Brazil, Democratic Republic of Congo, Indonesia, and the Philippines was performed. It highlights differences in legal, institutional, and policy frameworks. Australia and New Zealand, early adopters of carbon rights policies promoting private ownership, have developed strong markets. In contrast, Indonesia and other Global South nations are still evolving their frameworks, with a focus on state-controlled systems that restrict participation and equity. The findings indicate substantial gaps in Vietnam’s carbon rights governance compared to other countries, especially in terms of legal clarity, stakeholder engagement, and policy coherence. Accordingly, this study recommends that Vietnam should adopt a robust legal framework for carbon rights, improve transparency in carbon markets, and integrate Reducing Emissions from Deforestation and Forest Degradation in Developing Countries strategies within broader environmental governance objectives. Vietnam’s carbon rights ought to be designated as national assets to ensure equitable distribution among various forest ownership groups. Benefit-sharing mechanisms could be fashioned following the successful implementation of the Payment for Forest Environmental Services policy. The research concludes that, with these enhancements, Vietnam could emerge as a key player in the global carbon market and effectively leverage Reducing Emissions from Deforestation and Forest Degradation in Developing Countries for sustainable development and climate objectives. Full article

As the global energy transition progresses, green electricity, which is crucial for low-carbon systems, has gained attention. However, the lack of effective market linkages hinders a full understanding of the price transmission effects across green markets. This study uses the Vector Autoregression (VAR) model and Granger causality tests to analyze the price transmission and lag effects between the carbon, green certificate, and China Certified Emission Reduction (CCER) Markets. The findings reveal complex price linkages, offering theoretical insights and policy recommendations for optimizing green electricity markets and environmental rights trading. Full article

This paper explores how optimizing vessel speeds can help reduce carbon emissions in the maritime industry. Focusing on liner shipping routes between China and Europe, it examines how carbon pricing mechanisms, including carbon taxes and emissions trading under the European Union Emissions Trading Scheme (EU ETS), impact operational costs and emissions reduction. With the use of advanced optimization methods, such as the Non-dominated Sorting Genetic Algorithm-II (NSGA-II) and the Technique for Order of Preference by Similarity to an Ideal Solution (TOPSIS), this research explores the balance between adjusting vessel speeds and minimizing emissions. The findings show that shipping companies on the China–Europe route can reduce the financial strain of carbon pricing by carefully managing speeds and voyage times. This study compares two scenarios of carbon tax policy and carbon trading rights in terms of voyage costs and carbon emissions. The results of this comparison based on the given parameters indicate a reduction of 1124 tons of carbon emissions with the carbon tax policy scenario, while the carbon trading rights scenario allows for more voyages yearly (5.24 vs. 5.30). This demonstrates one policy being more economical, while the other is also more environmentally efficient. These insights support the development of strategies that align environmental goals with economic priorities, paving the way for more sustainable maritime operations. The study introduces its objectives and reviews relevant literature by presenting a detailed methodology, incorporating emissions modeling with clearly defined parameters. The analysis presents results that undergo sensitivity testing and limitations using MATLAB (R2022a version). The study concludes by discussing policy implications and recommendations for future research and practical advancement Full article

With increasing global attention on carbon emission control and sustainable development, the carbon market has become an important tool for promoting environmental sustainability and carbon emission regulation. As an important part of energy trading, the electricity market is closely related to the carbon market and their effective coupling is critical for achieving sustainable energy transitions. Power generation can effectively link carbon prices and electricity prices. Through the promulgation of reasonable policies, we can promote the coupling of the carbon market and the electricity market, and then, through macro-control, promote the steady and joint development of the carbon and electricity markets, improve the construction of the carbon rights market, reduce greenhouse gas emissions, and create a sustainable future for humanity. Given the relative maturity of the EU carbon market and electricity market, this paper identifies key points of market volatility through the coupling coordination model analysis and uses the GPT large model analysis to analyze policy factors that have a greater impact on carbon market and electricity market transactions. The research results show that market-regulating policies and expectation management policies have the greatest impact on the degree of coupling between the carbon and electricity markets. The impact of secondary policies such as international cooperation policies and structural adjustment policies is relatively insignificant. Although the development of China’s carbon market faces many challenges, reasonable policy interventions are expected to achieve significant results in the domestic carbon market. Finally, this paper also draws on analogy analysis to draw corresponding implications for China from the EU’s carbon–electricity coupling policy promulgation. Full article

In the context of China’s electricity market reform, green certificate trading and carbon trading, as important policy tools to promote the development of renewable energy and energy conservation and emission reduction in the power industry, will inevitably be coupled with the electricity market. In order to study whether the coupled market can successfully achieve the goals of power supply structure adjustment and carbon emission reduction, this paper establishes a system dynamics (SD) model, analyzes the correlation and coordination mechanism among the green certificate market (TGC), carbon market (ET) and electricity market, including generation right trading, and simulates the changes of market price and power supply structure. The results show that (1) the power price under the coupling of three markets includes the TGC price and the ET price, so it is influenced by the ratio of renewable portfolio standards (RPS) and carbon reduction policy; (2) the combination of the TGC mechanism and the ET mechanism will be conducive to the optimization of long-term market power supply structure, so as to promote the realization of emission reduction targets; and (3) power generation rights trading, as a carbon reduction policy, will reduce the power generation of fossil energy in the short-term market, but in the long run, it will lead to the loss of momentum for the development of renewable energy. Therefore, regulators need to reasonably adjust different policies in order to give full play to the comprehensive regulatory role and help the energy and power industry and the low-carbon transformation of society. Full article