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Keywords = carbon trading scheme

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20 pages, 2783 KiB  
Article
Theoretical Design of Composite Stratified Nanohole Arrays for High-Figure-of-Merit Plasmonic Hydrogen Sensors
by Jiyu Feng, Yuting Liu, Xinyi Chen, Mingyu Cheng and Bin Ai
Chemosensors 2025, 13(8), 309; https://doi.org/10.3390/chemosensors13080309 - 15 Aug 2025
Abstract
Fast, spark-free detection of hydrogen leaks is indispensable for large-scale hydrogen deployment, yet electronic sensors remain power-intensive and prone to cross-talk. Optical schemes based on surface plasmons enable remote read-out, but single-metal devices offer either weak H2 affinity or poor plasmonic quality. [...] Read more.
Fast, spark-free detection of hydrogen leaks is indispensable for large-scale hydrogen deployment, yet electronic sensors remain power-intensive and prone to cross-talk. Optical schemes based on surface plasmons enable remote read-out, but single-metal devices offer either weak H2 affinity or poor plasmonic quality. Here we employ full-wave finite-difference time-domain (FDTD) simulations to map the hydrogen response of nanohole arrays (NAs) that can be mass-produced by colloidal lithography. Square lattices of 200 nm holes etched into 100 nm films of Pd, Mg, Ti, V, or Zr expose an intrinsic trade-off: Pd maintains sharp extraordinary optical transmission modes but shifts by only 28 nm upon hydriding, whereas Mg undergoes a large dielectric transition that extinguishes its resonance. Vertical pairing of a hydride-forming layer with a noble metal plasmonic cap overcomes this limitation. A Mg/Pd bilayer preserves all modes and red-shifts by 94 nm, while the predicted optimum Ag (60 nm)/Mg (40 nm) stack delivers a 163 nm shift with an 83 nm linewidth, yielding a figure of merit of 1.96—surpassing the best plasmonic hydrogen sensors reported to date. Continuous-film geometry suppresses mechanical degradation, and the design rules—noble-metal plasmon generator, buried hydride layer, and thickness tuning—are general. This study charts a scalable route to remote, sub-ppm, optical hydrogen sensors compatible with a carbon-neutral energy infrastructure. Full article
(This article belongs to the Special Issue Innovative Gas Sensors: Development and Application)
46 pages, 26730 KiB  
Review
AI-Driven Multi-Objective Optimization and Decision-Making for Urban Building Energy Retrofit: Advances, Challenges, and Systematic Review
by Rudai Shan, Xiaohan Jia, Xuehua Su, Qianhui Xu, Hao Ning and Jiuhong Zhang
Appl. Sci. 2025, 15(16), 8944; https://doi.org/10.3390/app15168944 - 13 Aug 2025
Viewed by 132
Abstract
Urban building energy retrofit (UBER) is a critical strategy for advancing the low-carbon and climate-resilience transformation of cities. The integration of machine learning (ML), data-driven clustering, and multi-objective optimization (MOO) is a key aspect of artificial intelligence (AI) that is transforming the process [...] Read more.
Urban building energy retrofit (UBER) is a critical strategy for advancing the low-carbon and climate-resilience transformation of cities. The integration of machine learning (ML), data-driven clustering, and multi-objective optimization (MOO) is a key aspect of artificial intelligence (AI) that is transforming the process of retrofit decision-making. This integration enables the development of scalable, cost-effective, and robust solutions on an urban scale. This systematic review synthesizes recent advances in AI-driven MOO frameworks for UBER, focusing on how state-of-the-art methods can help to identify and prioritize retrofit targets, balance energy, cost, and environmental objectives, and develop transparent, stakeholder-oriented decision-making processes. Key advances highlighted in this review include the following: (1) the application of ML-based surrogate models for efficient evaluation of retrofit design alternatives; (2) data-driven clustering and classification to identify high-impact interventions across complex urban fabrics; (3) MOO algorithms that support trade-off analysis under real-world constraints; and (4) the emerging integration of explainable AI (XAI) for enhanced transparency and stakeholder engagement in retrofit planning. Representative case studies demonstrate the practical impact of these approaches in optimizing envelope upgrades, active system retrofits, and prioritization schemes. Notwithstanding these advancements, considerable challenges persist, encompassing data heterogeneity, the transferability of models across disparate urban contexts, fragmented digital toolchains, and the paucity of real-world validation of AI-based solutions. The subsequent discussion encompasses prospective research directions, with particular emphasis on the potential of deep learning (DL), spatiotemporal forecasting, generative models, and digital twins to further advance scalable and adaptive urban retrofit. Full article
(This article belongs to the Special Issue Artificial Intelligence (AI) for Energy Systems)
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28 pages, 1795 KiB  
Article
From Policy to Prices: How Carbon Markets Transmit Shocks Across Energy and Labor Systems
by Cristiana Tudor, Aura Girlovan, Robert Sova, Javier Sierra and Georgiana Roxana Stancu
Energies 2025, 18(15), 4125; https://doi.org/10.3390/en18154125 - 4 Aug 2025
Viewed by 345
Abstract
This paper examines the changing role of emissions trading systems (ETSs) within the macro-financial framework of energy markets, emphasizing price dynamics and systemic spillovers. Utilizing monthly data from seven ETS jurisdictions spanning January 2021 to December 2024 (N = 287 observations after log [...] Read more.
This paper examines the changing role of emissions trading systems (ETSs) within the macro-financial framework of energy markets, emphasizing price dynamics and systemic spillovers. Utilizing monthly data from seven ETS jurisdictions spanning January 2021 to December 2024 (N = 287 observations after log transformation and first differencing), which includes four auction-based markets (United States, Canada, United Kingdom, South Korea), two secondary markets (China, New Zealand), and a government-set fixed-price scheme (Germany), this research estimates a panel vector autoregression (PVAR) employing a Common Correlated Effects (CCE) model and augments it with machine learning analysis utilizing XGBoost and explainable AI methodologies. The PVAR-CEE reveals numerous unexpected findings related to carbon markets: ETS returns exhibit persistence with an autoregressive coefficient of −0.137 after a four-month lag, while increasing inflation results in rising ETS after the same period. Furthermore, ETSs generate spillover effects in the real economy, as elevated ETSs today forecast a 0.125-point reduction in unemployment one month later and a 0.0173 increase in inflation after two months. Impulse response analysis indicates that exogenous shocks, including Brent oil prices, policy uncertainty, and financial volatility, are swiftly assimilated by ETS pricing, with effects dissipating completely within three to eight months. XGBoost models ascertain that policy uncertainty and Brent oil prices are the most significant predictors of one-month-ahead ETSs, whereas ESG factors are relevant only beyond certain thresholds and in conditions of low policy uncertainty. These findings establish ETS markets as dynamic transmitters of macroeconomic signals, influencing energy management, labor changes, and sustainable finance under carbon pricing frameworks. Full article
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16 pages, 1541 KiB  
Article
Economic Dispatch Strategy for Power Grids Considering Waste Heat Utilization in High-Energy-Consuming Enterprises
by Lei Zhou, Ping He, Siru Wang, Cailian Ma, Yiming Zhou, Can Cai and Hongbo Zou
Processes 2025, 13(8), 2450; https://doi.org/10.3390/pr13082450 - 2 Aug 2025
Viewed by 344
Abstract
Under the construction background of carbon peak and carbon neutrality, high-energy-consuming enterprises, represented by the electrolytic aluminum industry, have become important carriers for energy conservation and emission reduction. These enterprises are characterized by significant energy consumption and high carbon emissions, greatly impacting the [...] Read more.
Under the construction background of carbon peak and carbon neutrality, high-energy-consuming enterprises, represented by the electrolytic aluminum industry, have become important carriers for energy conservation and emission reduction. These enterprises are characterized by significant energy consumption and high carbon emissions, greatly impacting the economic and environmental benefits of regional power grids. Existing research often focuses on grid revenue, leaving high-energy-consuming enterprises in a passive regulatory position. To address this, this paper constructs an economic dispatch strategy for power grids that considers waste heat utilization in high-energy-consuming enterprises. A typical representative, electrolytic aluminum load and its waste heat utilization model, for the entire production process of high-energy-consuming loads, is established. Using a tiered carbon trading calculation formula, a low-carbon production scheme for high-energy-consuming enterprises is developed. On the grid side, considering local load levels, the uncertainty of wind power output, and the energy demands of aluminum production, a robust day-ahead economic dispatch model is established. Case analysis based on the modified IEEE-30 node system demonstrates that the proposed method balances economic efficiency and low-carbon performance while reducing the conservatism of traditional optimization approaches. Full article
(This article belongs to the Section Energy Systems)
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23 pages, 2546 KiB  
Article
Flexible Job-Shop Scheduling Integrating Carbon Cap-And-Trade Policy and Outsourcing Strategy
by Like Zhang, Wenpu Liu, Hua Wang, Guoqiang Shi, Qianwang Deng and Xinyu Yang
Sustainability 2025, 17(15), 6978; https://doi.org/10.3390/su17156978 - 31 Jul 2025
Viewed by 205
Abstract
Carbon cap-and-trade is a practical policy in guiding manufacturers to produce economic and environmental production plans. However, previous studies on carbon cap-and-trade are from a macro level to guide manufacturers to make production plans, rather than from a perspective of specific production scheduling, [...] Read more.
Carbon cap-and-trade is a practical policy in guiding manufacturers to produce economic and environmental production plans. However, previous studies on carbon cap-and-trade are from a macro level to guide manufacturers to make production plans, rather than from a perspective of specific production scheduling, which leads to a lack of theoretical guidance for manufacturers to develop reasonable production scheduling schemes for specific production orders. This article investigates a specific scheduling problem in a flexible job-shop environment that considers the carbon cap-and-trade policy, aiming to provide guidance for specific production scheduling (i.e., resource allocation). In the proposed problem, carbon emissions have an upper limit. A penalty will be generated if the emissions overpass the predetermined cap. To satisfy the carbon emission cap, the manufacturer can trade carbon credits or adopt outsourcing strategy, that is, outsourcing partial orders to partners at the expense of outsourcing costs. To solve the proposed model, a novel and efficient memetic algorithm (NEMA) is proposed. An initialization method and four local search operators are developed to enhance the search ability. Numerous experiments are conducted and the results validate that NEMA is a superior algorithm in both solution quality and efficiency. Full article
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25 pages, 528 KiB  
Review
Life Cycle Assessment and Environmental Load Management in the Cement Industry
by Qiang Su, Ruslan Latypov, Shuyi Chen, Lei Zhu, Lixin Liu, Xiaolu Guo and Chunxiang Qian
Systems 2025, 13(7), 611; https://doi.org/10.3390/systems13070611 - 20 Jul 2025
Viewed by 640
Abstract
The cement industry is a significant contributor to global environmental impacts, and Life Cycle Assessment (LCA) has emerged as a critical tool for evaluating and managing these burdens. This review uniquely synthesizes recent advancements in the LCA methodology and provides a detailed comparison [...] Read more.
The cement industry is a significant contributor to global environmental impacts, and Life Cycle Assessment (LCA) has emerged as a critical tool for evaluating and managing these burdens. This review uniquely synthesizes recent advancements in the LCA methodology and provides a detailed comparison of cement production impacts across major producing regions, notably highlighting China’s role as the largest global emitter. It covers the core LCA phases, including goal and scope definition, inventory analysis, impact assessment, and interpretation, and emphasizes the role of LCA in quantifying cradle-to-gate impacts (typically around 0.9–1.0 t CO2 per ton of cement), evaluating the emissions reductions provided by alternative cement types (such as ~30–45% lower emissions using limestone calcined clay cements), informing policy frameworks like emissions trading schemes, and guiding sustainability certifications. Strategies for environmental load reduction in cement manufacturing are quantitatively examined, including technological innovations (e.g., carbon capture technologies potentially cutting plant emissions by up to ~90%) and material substitutions. Persistent methodological challenges—such as data quality issues, scope limitations, and the limited real-world integration of LCA findings—are critically discussed. Finally, specific future research priorities are identified, including developing country-specific LCI databases, integrating techno-economic assessment into LCA frameworks, and creating user-friendly digital tools to enhance the practical implementation of LCA-driven strategies in the cement industry. Full article
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15 pages, 795 KiB  
Article
Optimal Dispatch of Power Grids Considering Carbon Trading and Green Certificate Trading
by Xin Shen, Xuncheng Zhu, Yuan Yuan, Zhao Luo, Xiaoshun Zhang and Yuqin Liu
Technologies 2025, 13(7), 294; https://doi.org/10.3390/technologies13070294 - 9 Jul 2025
Viewed by 300
Abstract
In the context of the intensifying global climate crisis, the power industry, as a significant carbon emitter, urgently needs to promote low-carbon transformation using market mechanisms. In this paper, a multi-objective stochastic optimization scheduling framework for regional power grids integrating carbon trading (CET) [...] Read more.
In the context of the intensifying global climate crisis, the power industry, as a significant carbon emitter, urgently needs to promote low-carbon transformation using market mechanisms. In this paper, a multi-objective stochastic optimization scheduling framework for regional power grids integrating carbon trading (CET) and green certificate trading (GCT) is proposed to coordinate the conflict between economic benefits and environmental objectives. By building a deterministic optimization model, the goal of maximizing power generation profit and minimizing carbon emissions is combined in a weighted form, and the power balance, carbon quota constraint, and the proportion of renewable energy are introduced. To deal with the uncertainty of power demand, carbon baseline, and the green certificate ratio, Monte Carlo simulation was further used to generate random parameter scenarios, and the CPLEX solver was used to optimize scheduling schemes iteratively. The simulation results show that when the proportion of green certificates increases from 0.35 to 0.45, the proportion of renewable energy generation increases by 4%, the output of coal power decreases by 12–15%, and the carbon emission decreases by 3–4.5%. At the same time, the tightening of carbon quotas (coefficient increased from 0.78 to 0.84) promoted the output of gas units to increase by 70 MWh, verifying the synergistic emission reduction effect of the “total control + market incentive” policy. Economic–environmental tradeoff analysis shows that high-cost inputs are positively correlated with the proportion of renewable energy, and carbon emissions are significantly negatively correlated with the proportion of green certificates (correlation coefficient −0.79). This study emphasizes that dynamic adjustments of carbon quota and green certificate targets can avoid diminishing marginal emission reduction efficiency, while the independent carbon price mechanism needs to enhance its linkage with economic targets through policy design. This framework provides theoretical support and a practical path for decision-makers to design a flexible market mechanism and build a multi-energy complementary system of “coal power base load protection, gas peak regulation, and renewable energy supplement”. Full article
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18 pages, 1289 KiB  
Article
Co-Benefits of Carbon Pricing and Electricity Market Liberalization: A CGE Case Study
by Ning Yan, Shenhai Huang, Yan Chen, Daini Zhang, Qin Xu, Xiangyi Yang and Shiyan Wen
Sustainability 2025, 17(13), 5992; https://doi.org/10.3390/su17135992 - 30 Jun 2025
Cited by 1 | Viewed by 471
Abstract
This study explores how carbon pricing and electricity market liberalization jointly contribute to China’s sustainable energy transition. Using a dynamic computable general equilibrium (CGE) model (CEEEA2.0), we simulate three policy scenarios—business as usual, emissions trading scheme (ETS) with regulated electricity prices, and ETS [...] Read more.
This study explores how carbon pricing and electricity market liberalization jointly contribute to China’s sustainable energy transition. Using a dynamic computable general equilibrium (CGE) model (CEEEA2.0), we simulate three policy scenarios—business as usual, emissions trading scheme (ETS) with regulated electricity prices, and ETS with market-based pricing—under a unified emissions cap. The results demonstrate that electricity market liberalization enhances carbon pricing efficiency by eliminating price distortions, leading to a 0.06% increase in GDP and a 12% reduction in emission abatement costs. However, liberalization also raises electricity and consumer prices, disproportionately affecting rural and low-income households. These findings underscore the need to balance economic efficiency and social equity in sustainability-oriented energy reforms. Our analysis emphasizes the importance of designing inclusive and just transition policies to ensure that carbon mitigation efforts support long-term environmental, economic, and social sustainability goals. Full article
(This article belongs to the Section Economic and Business Aspects of Sustainability)
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27 pages, 457 KiB  
Article
Can the Implementation of Carbon Emissions Trading Schemes Improve Prefecture-Level Agricultural Green Total Factor Productivity?
by You Xu, Zhe Zhao and Yi Zhang
Sustainability 2025, 17(13), 5940; https://doi.org/10.3390/su17135940 - 27 Jun 2025
Viewed by 293
Abstract
This paper investigates the impact of carbon emissions trading schemes (CETSs) on agricultural green total factor productivity (AGTFP) using a multi-temporal DID model. Using Chinese prefecture-level city data collected from 2004 to 2022, we find that CETSs enhance AGTFP through technological innovation, with [...] Read more.
This paper investigates the impact of carbon emissions trading schemes (CETSs) on agricultural green total factor productivity (AGTFP) using a multi-temporal DID model. Using Chinese prefecture-level city data collected from 2004 to 2022, we find that CETSs enhance AGTFP through technological innovation, with stronger effects in eastern and western regions and positive spillover to neighboring cities. These findings underscore the significant role of CETSs in influencing agricultural productivity and highlight the various factors that contribute to improving AGTFP. Full article
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34 pages, 2745 KiB  
Article
Prediction of Exotic Hardwood Carbon for Use in the New Zealand Emissions Trading Scheme
by Michael S. Watt, Mark O. Kimberley, Benjamin S. C. Steer and Micah N. Scholer
Forests 2025, 16(7), 1070; https://doi.org/10.3390/f16071070 - 27 Jun 2025
Viewed by 417
Abstract
New Zealand’s Emissions Trading Scheme (ETS) enables growers to earn payments by accumulating carbon units as their forests increase in carbon stock. For forests of less than 100 hectares, growers use predefined lookup tables (LUTs) to estimate carbon stock changes based on forest [...] Read more.
New Zealand’s Emissions Trading Scheme (ETS) enables growers to earn payments by accumulating carbon units as their forests increase in carbon stock. For forests of less than 100 hectares, growers use predefined lookup tables (LUTs) to estimate carbon stock changes based on forest age. Using a combination of growth models and productivity surfaces, underpinned by data from 1360 growth plots, the objective of this study was to provide draft updates for the Exotic Hardwoods LUTs. The updated LUTs were based on growth rates of three Eucalyptus species, E. fastigata, E. regnans, and E. nitens, which comprise a major proportion of the Exotic Hardwoods forest type in New Zealand. Carbon tables were first derived for each species. Then, a draft LUT was generated for New Zealand’s North Island, using a weighted average of the species-specific tables based on the relative importance of the species, while the E. nitens table was used for the South Island where this is the predominant Eucalyptus species. Carbon stock predictions at ages 30 and 50 years were 820 and 1340 tonnes CO2 ha−1 for the North Island, and slightly higher at 958 and 1609 tonnes CO2 ha−1 for the South Island. Regional variation was significant, with the highest predicted carbon in Southland (1691 tonnes CO2 ha−1 at age 50) and lowest in Hawke’s Bay/Southern North Island (1292 tonnes CO2 ha−1). Predictions closely matched the current Exotic Hardwood LUT to age 20 years but exceeded it by up to 45% at age 35. Growth and carbon sequestration rates were similar to other established Eucalyptus species and slightly higher than Acacia species, though further research is recommended. These findings suggest that the three Eucalyptus species studied here could serve as the default species for a revised Exotic Hardwoods LUT and that the current national tables could be regionalised. However, the government may consider factors other than the technical considerations outlined here when updating the LUTs. Full article
(This article belongs to the Section Wood Science and Forest Products)
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28 pages, 840 KiB  
Perspective
Decarbonizing the Industry Sector: Current Status and Future Opportunities of Energy-Aware Production Scheduling
by Georgios P. Georgiadis, Christos N. Dimitriadis and Michael C. Georgiadis
Processes 2025, 13(6), 1941; https://doi.org/10.3390/pr13061941 - 19 Jun 2025
Viewed by 664
Abstract
As industries come under growing pressure to minimize carbon emissions without compromising the efficiency of operations, the integration of energy-aware production scheduling with emerging energy markets, renewable energy, and policy mechanisms is critical. This paper identifies critical shortcomings in current academic and industrial [...] Read more.
As industries come under growing pressure to minimize carbon emissions without compromising the efficiency of operations, the integration of energy-aware production scheduling with emerging energy markets, renewable energy, and policy mechanisms is critical. This paper identifies critical shortcomings in current academic and industrial approaches—namely, an excessive reliance on deterministic assumptions, a limited focus on dynamic operational realities, and the underutilization of regulatory mechanisms such as carbon trading. We advocate for a paradigm shift to more robust, adaptable, and policy-compliant scheduling systems that provide space for on-site renewable generation, battery energy storage systems (BESSs), demand-response measures, and real-time electricity pricing schemes like time-of-use (TOU) and real-time pricing (RTP). By integrating recent advances and their critical analysis of limitations, we map out a future research agenda for the integration of uncertainty modeling, machine learning, and multi-level optimization with policy compliance. In this paper, we propose the need for joint efforts from researchers, industries, and policymakers to collectively develop industrial scheduling systems that are both technically efficient and adherent to sustainability and regulatory requirements. Full article
(This article belongs to the Section Energy Systems)
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20 pages, 1279 KiB  
Article
How Does Carbon Emissions Trading Impact Energy Transition? A Perspective Based on Local Government Behavior
by Yue Tang, Shixiang Li and Feng Wu
Sustainability 2025, 17(12), 5300; https://doi.org/10.3390/su17125300 - 8 Jun 2025
Viewed by 453
Abstract
Assessing the environmental and economic impacts of the carbon emissions trading scheme (ETS) is both timely and essential. This study investigates the effects of the ETS on energy transition by analyzing panel data from 30 provinces and municipalities across mainland China. The findings [...] Read more.
Assessing the environmental and economic impacts of the carbon emissions trading scheme (ETS) is both timely and essential. This study investigates the effects of the ETS on energy transition by analyzing panel data from 30 provinces and municipalities across mainland China. The findings highlight three key points. First, the ETS significantly promotes energy transition. Robustness tests confirm the validity of this conclusion. Compared with non-pilot provinces, pilot provinces achieve a 4.83% increase in energy transition levels. Second, the energy transition effect of the ETS is mainly achieved by changing the incentive and constraint behavior of local governments. Third, the ETS exerts a more pronounced impact on energy transition in regions with higher levels of marketization and stronger innovation capabilities. Furthermore, the effects of the ETS vary across different quantiles of energy transition levels. This study provides a novel perspective on achieving the synergistic development of economic growth and environmental sustainability. Full article
(This article belongs to the Section Energy Sustainability)
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31 pages, 1122 KiB  
Article
Research on China’s Railway Freight Pricing Under Carbon Emissions Trading Mechanism
by Xiaoyong Wei and Huaixiang Wang
Sustainability 2025, 17(12), 5265; https://doi.org/10.3390/su17125265 - 6 Jun 2025
Cited by 1 | Viewed by 966
Abstract
Amid intensified global climate mitigation efforts, integrating rail freight into carbon emissions trading schemes became critical under China’s “Dual-Carbon” strategy. Despite rail’s significantly lower emissions intensity compared to road transport, existing pricing frameworks inadequately internalized its environmental externalities, which limited its competitive advantage. [...] Read more.
Amid intensified global climate mitigation efforts, integrating rail freight into carbon emissions trading schemes became critical under China’s “Dual-Carbon” strategy. Despite rail’s significantly lower emissions intensity compared to road transport, existing pricing frameworks inadequately internalized its environmental externalities, which limited its competitive advantage. To address this gap, this study systematically reviewed international and domestic practices of integrating transport into carbon trading systems and developed a novel “four-layer, three-dimensional” emissions trading scheme (ETS) framework tailored specifically for China’s rail freight sector. Employing a Stackelberg bilevel optimization model, this study analyzed how carbon quotas and pricing influenced rail operators’ pricing and investment decisions. The results showed that under optimized quotas and carbon prices, railway enterprises were able to generate surplus carbon credits, creating new revenue streams and enabling freight rate reductions. This “carbon revenue–freight rate feedback loop” not only delivered environmental benefits but also enhanced rail’s economic competitiveness. Overall, this study significantly advances the understanding of carbon-based pricing mechanisms in railway freight, providing robust theoretical insights and actionable policy guidance for achieving sustainable decarbonization in China’s transport sector. Full article
(This article belongs to the Section Economic and Business Aspects of Sustainability)
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31 pages, 1194 KiB  
Article
UK Carbon Price Dynamics: Long-Memory Effects and AI-Based Forecasting
by Zeno Dinca, Camelia Oprean-Stan and Daniel Balsalobre-Lorente
Fractal Fract. 2025, 9(6), 350; https://doi.org/10.3390/fractalfract9060350 - 27 May 2025
Viewed by 754
Abstract
This study examines the price dynamics of the UK Emission Trading Scheme (UK ETS) by integrating advanced computational methods, including deep learning and statistical modelling, to analyze and simulate carbon market behaviour. By analyzing long-memory effects and price volatility, it assesses whether UK [...] Read more.
This study examines the price dynamics of the UK Emission Trading Scheme (UK ETS) by integrating advanced computational methods, including deep learning and statistical modelling, to analyze and simulate carbon market behaviour. By analyzing long-memory effects and price volatility, it assesses whether UK carbon prices align with theoretical expectations from carbon pricing mechanisms and market efficiency theories. Findings indicate that UK carbon prices exhibit persistent long-memory effects, contradicting the Efficient Market Hypothesis, which assumes price movements are random and fully reflect available information. Furthermore, regulatory interventions exert significant downward pressure on prices, suggesting that policy uncertainty disrupts price equilibrium in cap-and-trade markets. Deep learning models, such as Time-series Generative Adversarial Networks (TGANs) and adjusted fractional Brownian motion, outperform traditional approaches in capturing price dependencies but are prone to overfitting, highlighting trade-offs in AI-based forecasting for carbon markets. These results underscore the need for predictable regulatory frameworks, hybrid pricing mechanisms, and data-driven approaches to enhance market efficiency. By integrating empirical findings with economic theory, this study contributes to the carbon finance literature and provides insights for policymakers on improving the stability and effectiveness of emissions trading systems. Full article
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18 pages, 18892 KiB  
Article
A Bidding Strategy for Power Suppliers Based on Multi-Agent Reinforcement Learning in Carbon–Electricity–Coal Coupling Market
by Zhiwei Liao, Chengjin Li, Xiang Zhang, Qiyun Hu and Bowen Wang
Energies 2025, 18(9), 2388; https://doi.org/10.3390/en18092388 - 7 May 2025
Viewed by 504
Abstract
The deepening operation of the carbon emission trading market has reshaped the cost–benefit structure of the power generation side. In the process of participating in the market quotation, power suppliers not only need to calculate the conventional power generation cost but also need [...] Read more.
The deepening operation of the carbon emission trading market has reshaped the cost–benefit structure of the power generation side. In the process of participating in the market quotation, power suppliers not only need to calculate the conventional power generation cost but also need to coordinate the superimposed impact of carbon quota accounting on operating income, which causes the power suppliers a multi-time-scale decision-making collaborative optimization problem under the interaction of the carbon market, power market, and coal market. This paper focuses on the multi-market-coupling decision optimization problem of thermal power suppliers. It proposes a collaborative bidding decision framework based on a multi-agent deep deterministic policy gradient (MADDPG). Firstly, aiming at the time-scale difference of multi-sided market decision making, a decision-making cycle coordination scheme for the carbon–electricity–coal coupling market is proposed. Secondly, upper and lower optimization models for the bidding decision making of power suppliers are constructed. Then, based on the MADDPG algorithm, the multi-generator bidding scenario is simulated to solve the optimal multi-generator bidding strategy in the carbon–electricity–coal coupling market. Finally, the multi-scenario simulation based on the IEEE-5 node system shows that the model can effectively analyze the differential influence of a multi-market structure on the bidding strategy of power suppliers, verifying the superiority of the algorithm in convergence speed and revenue optimization. Full article
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