Search Results (8)

The proposal of the energy-consuming right (ECR) market may lead to generation companies (GenCos) facing the risk of being overcharged due to the inaccurate calculation of carbon emission reduction, since it claims the same credit as the carbon market does. To estimate the carbon emission reduction accurately for the GenCos that participate in electricity, carbon, and ECR markets simultaneously, this paper proposes a market framework where a flexible exchange mechanism between the ECR and carbon markets is specially considered. To investigate the influence of the allocation and exchange of ECR and carbon credits on the behavior of GenCos that participate in multi-type markets, a bi-level model based on the leader–follower game theory is proposed. In the upper level of the proposed model, a decision problem for maximizing the profit of GenCos is developed, which is especially constrained to the primary allocation of ECR and carbon credits. While the multi-type market clearing model and an exchange mechanism between the ECR and carbon credits are proposed in the lower level of the model. The bi-level problem is converted into the mathematical program with equilibrium constraints (MPECs) through the Karush–Kuhn–Tucker (KKT) condition to solve. The results illustrate that the interaction between the ECR market and the carbon market can improve the energy efficiency and reduce the carbon emissions of GenCos. Full article

China is facing development challenges, such as the red line of arable land, resource shortage, and tightening ecological and environmental constraints. In this context, improving land green utilization efficiency (LGUE) is not only an important undertaking to optimize the spatial layout of the country and improve resource carrying capacity but also an inevitable choice for the comprehensive green transformation of economic and social development. China’s energy-consuming right trading (ECRT) is an important energy transition demonstration policy; however, its effect on LGUE has yet to be scientifically evaluated in academic research. Using panel data of 260 prefecture-level cities in China from 2009 to 2021, this study first uses a difference-in-difference model to test the effect of ECRT on LGUE, analyze its transmission mechanism, and further examine the impact of urban characteristic heterogeneity on policy effects from multiple perspectives. Results show the following: (1) The pilot policy of ECRT significantly improves urban LGUE, as confirmed by robustness tests. (2) The ECRT pilot policy enhances urban technological innovation, promotes the upgrading of industrial structure, and thereby improves LGUE. (3) The ECRT has a more significant enhancement effect on the central and western cities, large-scale cities, and resource-based cities. (4) Government environmental protection assessment can have a positive moderating effect, that is, further amplifying the effect of ECRT on improving urban LGUE. In conclusion, we should solidly promote the construction of a unified national ECRT market, formulate policy implementation plans tailored to local conditions, and steadily improve LGUE. To a certain extent, this paper reveals the inherent logic of how ECRT affects LGUE, which provides opportunities for cities to improve LGUE through ECRT, and provides reference for promoting the comprehensive green transformation of economic and social development. Full article

With the Clean Energy for all Europeans legislative package, the European Union (EU) aimed to put consumers “at the heart” of EU energy policy. The recast of the Renewable Energy Directive (RED II) acknowledged the importance of energy communities for the energy transition and introduced new provisions for renewable energy communities (RECs), empowering them to participate in the energy market. This article analyses the progress of transposing and implementing key provisions of the RED II that apply to RECs in nine European countries and focuses on timeliness and completeness of transposition. It comprises both a qualitative and quantitative assessment covering (1) the definition, rights, and market activities of RECs; (2) key elements of enabling frameworks; and (3) consideration of REC specificities in support schemes for renewable energy. The analysis shows considerable variation in transposition performance between the analysed countries. The authors investigate the reasons for this variation and relate them to findings of European implementation and compliance research. Key factors identified include actor-related and capacity-related factors, institutional fit, and characteristics of the RED II itself. Future research in this field needs multi-faceted avenues and should pay particular attention to the influence of national governments and incumbents, not only in the transposition process, but already in upstream policy formulation at the European level. Full article

The structuring of effective market-based environmental rights instruments can help to achieve energy efficiency and emission reduction goals while minimizing economic costs. As part of the global drive for sustainable development, pollution rights, carbon emission permits, and white certificates have become widely used as environmental rights trading schemes in many countries. However, interactions between environmental rights can create challenges. For instance, China has established a national carbon market, which it aims to connect with the energy consumption permit trading market. The effectiveness of separate and joint markets in achieving win-win outcomes is an area that requires further research. To address this question, we employed a mixed-integer linear programming model to simulate the potential incremental outputs and energy savings of 16 high-energy-consuming and high-emission industries in China from 2010 to 2019. Our findings indicate that the joint energy consumption permits and the carbon emission permits market yield the greatest economic benefits, but they lack a distinct advantage compared to the separate carbon market. Additionally, industries face less pressure to ensure energy savings in the joint market. The energy saving ratio of the joint market is 0.1% lower than that of the separate carbon market. We also found that the construction of a joint market will incur additional costs for firms and governments. Based on our benefit and cost analysis, we propose that governance subjects of pilot cities prioritize the establishment of the carbon market and not the rapid expansion of the pilot-level scope of energy consumption permits. Full article

The establishment of a complete carbon ecological compensation mechanism is of great significance for China to achieve “carbon peak and carbon neutrality” as soon as possible. From the perspective of land carbon budget accounting, this paper measures the carbon emissions and the value of carbon ecological compensation in 30 provinces in China from 2010 to 2019, by constructing a carbon ecological compensation model, and analyzes it from both time and space perspectives. The study found that: (1) during the period 2010–2019, China’s carbon absorption remained basically stable, and woodland and grassland were the main carriers of China’s land carbon absorption. The total carbon sequestration of woodland and grassland showed a pattern of being high in the west and low in the east, and the total carbon sequestration of cultivated land showed a pattern of being high in the east and low in the west. (2) Construction land is the main source of carbon emissions in China. Cultivated land carbon emissions mainly come from major agricultural provinces such as Henan and Heilongjiang, while construction land carbon emissions are mainly concentrated in energy-consuming provinces such as Shandong and Shanxi. (3) After revising the carbon compensation benchmark value, it is found that provinces such as Guangdong and Jiangsu should receive carbon ecological compensation, while provinces dominated by heavy industries such as Shanxi and Shandong need to pay corresponding carbon compensation fees. Finally, this article puts forward corresponding policy recommendations, such as that China should give full play to the role of the government and the market, accelerate the optimization and improvement of the ecological resource asset property rights system, and optimize the development and utilization of land. Full article

Renewable energy (RE) is one of the most popular public policy orientations worldwide. Compared to some other countries and continents, Europe has gained an early awareness of energy and environmental problems in general. At the theoretical level, free-market environmentalism indicates that based on the principle of private property rights, with fewer state interventionist and regulation policies, entrepreneurs, as the driving force of the market economy, can provide better services to meet the necessity of offering RE to protect the environment more effectively. Previous studies have revealed that Germany, Denmark, and the United Kingdom have made some progress in using the market to develop RE. However, this research did not analyze the three countries’ RE conditions from the perspective of free-market environmentalism. Based on our review of the principles of free-market environmentalism, this paper originally provides an empirical study of how Germany, Denmark, and the United Kingdom have partly conducted free-market-oriented policies to successfully achieve their policy goal of RE since the 1990s on a practical level. In particular, compared with Germany and Denmark, the UK has maintained a relatively low energy tax rate and opted for more pro-market measures since the Hayekian-Thatcherism free-market reform of 1979. The paper also discovers that Fredrich A. Hayek’s theories have strongly impacted its energy liberalization reform agenda since then. Low taxes on the energy industry and electricity have alleviated the burden on the electricity enterprises and consumers in the UK. Moreover, the empirical results above show that the energy enterprises play essential roles in providing better and more affordable RE for household and industrial users in the three sampled countries. Based on the above results, the paper also warns that state intervention policies such as taxation, state subsidies, and industrial access restrictions can impede these three countries’ RE targets. Additionally, our research provides reform agendas and policy suggestions to policymakers on the importance of implementing free-market environmentalism to provide more efficient RE in the post-COVID-19 era. Full article

The European Union sets targets for the extensive use of renewable energy. Meanwhile, the energy production network is changing and transferring from the classic “producer to consumer” scheme to new operation models, where a small consumer with local renewable energy systems becomes a producer–prosumer, an active energy consumer who is also an energy producer. This study evaluated a potential of Latvian households’ participation in the energy market as prosumers. The analysis was based on an informal prospective extrapolation data evaluation method, based on real historical data from the Central Statistical Bureau of Latvia, annual reports of distribution and transmission system operators, assessments, and the conclusions of relevant experts. In addition, the real performance of a photovoltaic (PV) system was evaluated to get information on the whole year’s energy balance, and to compare it with seasonal electricity price fluctuation. The Latvian electricity transmission system is able to accept about 800 MW of additional new renewable energy source (RES) capacity, so there is a great potential for prosumers. The biggest obstacle for a household’s involvement in the energy market is the lack of support mechanisms and relatively high cost of RES technologies. The results show that with the current dynamics of new microgenerator connections, Latvia will achieve the set goals regarding the involvement of prosumers in the achievement of RES goals only in the next century. In order to attract the public to energy production, the concept of energy community needs to be defined in Latvian legislation, a balanced peer trading mechanism needs to be developed for various RES self-consumption groups willing to sell surplus electricity, and tax policy conditions need to be reviewed for electricity transactions outside the NET (payment system), in order to fully ensure the rights of prosumers. Full article

The electricity sector is in a transition towards a Smart Energy System where the roles of private and institutional actors are evolving. This work deals with the influence of some technological innovations, enabling social innovations such as peer to peer trading and the participation in local energy collectives, on the regulation of the rights and obligations of consumers and prosumers in the electricity sector. It identifies the main radical innovations in the electricity market and analyses the legal and related non-legal obstacles that may impede the empowerment of energy consumers and prosumers. Some recommendations are provided to ensure that consumers and prosumers are empowered and can benefit from these new technological and social innovations in the electricity market. The recommendations relate to an accurate definition of prosumers and active consumers, the integration of demand response, the evolving role of distribution network operators and the birth of peer-to-peer trading. Full article