Search Results (6)

This study proposes a full-cost electricity pricing model (M3) based on power flow tracing, addressing limitations in traditional nodal pricing and postage stamp methods. M3 dynamically allocates fixed transmission costs based on actual grid utilization, improving fairness, price signal accuracy, and congestion management. The model achieves fast convergence within 20 iterations across tested networks. Sensitivity analysis confirms that fuel costs and load variations significantly impact pricing, making M3 more adaptive and responsive. A regression-based forecasting model further enhances price predictability. The dual IEEE 118-bus case study validates M3’s feasibility in inter-provincial electricity markets, demonstrating its effectiveness for real-time pricing and investment planning. Full article

Building the regional electricity spot market (RESM) in a representative area is an important move to promote the electricity market reform and new power system construction in China. In this paper, the RESM operation model and optimization method are established, which take into account the special power grid operation mechanism and market construction achievements in the provincial electricity spot market. Firstly, the influencing factors, core elements, market structure, and operation model of RESM construction in China are analyzed. Secondly, a bi-level optimization model of the RESM is established. The lower layer is the pre-clearing model of the provincial electricity spot market, which is used to optimize the unit combination strategy, considering unit operation constraints and power grid security constraints in the province. The upper layer is the optimization clearing model of the RESM, which is used to optimize the clearing price and adjust the unit operation strategy and inter-provincial electricity trading strategy, considering the security constraints of regional power grid tie lines. Finally, the RESM composed of power grids in the Yangtze River Delta region of China is simulated as an example. The analysis focuses on the operational state of the power grid after the operation of the RESM, considering its safety benefits, economic benefits, and environmental benefits. The optimization of the RESM can effectively solve the serious regional power grid congestion problem, which is achieved through the superposition and printing of pre-clearing results in various provinces, and the average daily cost of electricity purchasing in the region has been reduced by about CNY 11 million, while the annual cost has been reduced by about CNY 4 billion. In addition, the total carbon emissions have been reduced by 11,000 tons per day and 0.18 kg per kilowatt hour on average, and scenes without power abandonment account for more than 95% of the total scenes. Full article

Unimpeded domestic inter-regional trade is an inevitable choice for a country to improve its economic development autonomy and internal stability. The booming development of the digital economy profoundly affects inter-regional trade exchanges and the construction of domestic trade patterns. Based on China’s inter-provincial panel data, this study analyzes the mechanism channels and regional heterogeneity of the digital economy’s impact on inter-regional trade. We found that firstly, the digital economy significantly promotes inter-regional trade outflows and inflows with positive spatial spillover effects. Secondly, the digital economy promotes inter-regional trade by reducing trade costs and stimulating market demand, while the role of the resource allocation effect and technological innovation effect needs to be enhanced. Thirdly, the promotion of inter-regional trade by the digital economy is more prominent and has the potential for less developed regions or non-border regions. In addition, the digital economy significantly boosts inter-regional trade in labor-intensive regions, while it has a limited effect on inter-regional trade in technology-intensive regions. Therefore, this study suggests increasing the construction of digital infrastructure in less developed regions, tapping the role of the digital economy in resource allocation, and promoting the in-depth integration of the digital economy with the region’s advantageous industries, so as to promote inter-regional trade and economic development. Full article

The COVID-19 pandemic has threatened the goals of sustainable development through its impact on global public health and economic systems. This paper examines the impact of the COVID-19 pandemic on interprovincial trade in China. First, we estimate interprovincial trade flows in China for 2018–2022 using information from different sources and use it to infer interprovincial trade costs. Second, we estimate the impact of COVID-19 on interprovincial trade flows and interprovincial trade costs based on a trade gravity model. Finally, we construct a multiregional, multisector quantitative spatial model and introduce changes in interprovincial trade barriers in 2019–2020 to the model to analyze economic losses due to the early COVID-19 pandemic. We find a significant negative effect from the COVID-19 pandemic on interprovincial trade flows in China, but we do not obtain robust results demonstrating that the intensification of the pandemic significantly affected bilateral trade costs. The results of the quantitative analysis suggest that changes in interprovincial trade barriers reduced China’s overall GDP in 2019–2020 by 0.11%. The results are not the same at the regional and sectoral levels, but the impact is not significant on average. Full article

This paper proposes a novel regional carbon emission inequality (RCI) index based on a special kind of general distribution. Using the proposed RCI index and based on China’s county-level panel data over the time span of 1997–2017, the regional carbon emission inequality of China is evaluated at intra-provincial, sub-national, and national levels. Based on that, the dependence between regional carbon inequality and carbon efficiency is studied by using copula functions and nonlinear dependence measures. The empirical results show that: (1) Shanghai, Tianjin, and Inner Mongolia have the worst carbon inequalities; while Hainan, Qinghai, and Jiangxi are the three most carbon-equal provinces; (2) there is a divergence phenomenon in RCI values of municipalities over the past decade; (3) from the national-level perspective, the inter-provincial carbon emission inequality is much greater than that at the intra-provincial level; (4) from the sub-national-level perspective, the east region has the highest RCI value, followed by the northeast, west, and the central regions; (5) there is a so-called "efficiency-equality (E-E) trade-off" in each provincial administrative unit, meaning that the higher carbon efficiency generally comes with higher carbon inequality, i.e., carbon efficiency comes at a price of carbon inequality; and (6) by re-grouping provincial units via the efficiency-equality cost and industrial structure, respectively, both carbon equality and carbon efficiency can be achieved in some regions simultaneously, thereby getting out of the “E-E trade-off” dilemma. The empirical evidence may provide valuable insight regarding the topic of “equality and efficiency” in environmental economics, and offer policy implications for regional economic planning and coordination. Full article

In China, environmental pollution responsibilities are divided according to administrative regions. However, because of the strong externality of environmental pollution, the movement of environmental pollution undoubtedly increases the complexity of pollution governance. To divide the responsibility of environmental pollution governance in each province, we effectively quantify the unequal relationship between environmental pollution costs and economic benefits in each province to understand the mechanism and characteristics of inter-provincial environmental pollution movement. Based on the regional input–output model and an inventory we compiled of sulfur dioxide(SO₂) emissions of air pollutants in 2012, we calculate the implied inter-provincial environmental pollution emissions and economic benefits from trade, based on production and consumption (supply-side and demand-side). In addition, the movement relationship is explored, and the cost and economic value-added indexes of air pollution control are further constructed to provide effective evidence for a reasonable division of responsibility for environmental pollution control. The results show that there are obvious environmental inequities in the regional trade process in each province, indicating that environmental pollution has been moved. Developed provinces have more economic benefits but pay less in the process of trading goods with less-developed provinces due to the advantages of their industrial structure, while the opposite is true for less-developed provinces. Finally, we propose corresponding policy recommendations to change this condition. Full article