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This paper studies when and under what conditions the actions undertaken by the power plants involved in China's emission trading scheme (ETS) pilot became cost effective. Based on unique plant-level panel data and the difference-in-differences strategy, we identify that an insignificant initial reduction in cost efficiency occurred at the announcement stage for power plants in the pilot provinces; however, the cost efficiency of the pilot plants increased significantly following formal policy implementation. Additionally, the by-stage treatment effects differed across the pilot provinces due to localized market and non-market variations. Localized conditions of higher marketization, stricter policy enforcement, and lower carbon dependence enhanced this positive effect. The synthetic control results confirmed this variation in the policy effects. The carbon trading pilots resulted in improved efficiency in power plants in Shanghai, Guangdong, and Tianjin during the period 2013--2017, with an associated total cost saving of approximately 29.75 million RMB. To enhance the efficacy of the ETS policy, our findings suggest that the design of the policy should consider localized external factors. [ABSTRACT FROM AUTHOR]

Within the context of low-carbon development and drawing on the resource-based and dynamic capability theories, this paper provides a conceptual model of the relationship between external knowledge acquisition, green dynamic capability and corporate green innovation. Then, using 416 samples of firms in China collected from January 2018 to September 2018, the model was tested using the hierarchical regression analyses. The empirical results show that external technical knowledge acquisition and market knowledge acquisition have a positive influence on corporate green innovation. Additionally, the results show that green integration capability and green dynamic configuration capability positively moderate the relationship between technical knowledge acquisition and green innovation. The results also show that green learning capability, green integration capability and green dynamic configuration capability positively moderate the relationship between market knowledge acquisition and green innovation. This study supports the resource-based view, enriches the application of external knowledge acquisition in sustainable development, and extends the theory of green dynamic capability from causal prediction to situational factors. This paper provides theoretical support and practical guidance for firms seeking to effectively conduct open innovation, implement green innovation, and realize low-carbon development. [ABSTRACT FROM AUTHOR]

Green port construction has a profound impact on China's international climate commitment to carbon neutrality by 2050. To examine the carbon emission reduction potential of 20 major ports in the Yangtze River Delta port cluster of China, this study takes the perspective of environmental efficiency and employs dynamic exogenous variable DEA in efficiency evaluation. The results show the increasing environmental efficiency of the ports in the Yangtze River Delta, rising from 0.5116 in 2013 to 0.7276 in 2019. Also, there are significant spatial differences in efficiency. After considering exogenous variable, the average efficiency has increased from 0.5537 to 0.6276, indicating that regional green development is a critical factor in port environmental efficiency evaluation. Finally, the overall efficiency of input and output have risen, the slackness of carbon emission shows a trend of decreasing, and there is great potential for reducing carbon emissions from the perspective of port environmental efficiency. The previous studies paid less attention to dynamic efficiency, exogenous variables, and carbon emission. Therefore, this paper is the first comprehensive examination on the carbon emission reduction potential of China's Yangtze River Delta port cluster from the perspective of dynamic environmental efficiency. [ABSTRACT FROM AUTHOR]

Consolidating the results of poverty alleviation and achieving carbon neutrality are serious challenges for global sustainable development, and it is essential to explore the relationship between these goals, and then offer scientific responses. Based on the panel data of 30 provinces in China from 2010 to 2019, this paper conducted the 2SLS model by compromising the merits of the Regression Discontinuity principle with the STIRPAT model to study the interaction between poverty alleviation and carbon reduction. The study found that: (1) the implementation of poverty alleviation aggravates the problem of carbon emissions, and the main mechanism is that poverty alleviation promotes consumption and production by increasing the wealth of farmers, thereby increasing carbon emissions. (2) Carbon reduction weakens the achievement of poverty alleviation significantly, but the mitigation effect presents an "inverted U"-shaped curve, which first increases and then wanes. (3) Farmers' income and the development of rural transportation play a role in acting on the negative effects of carbon reduction. By integrating poverty theory and energy management, this article reveals the complex relationship between two important policies in China and offers relevant policy recommendations, which will not only promote the advancement of rural revitalization but also promote global sustainable development. [ABSTRACT FROM AUTHOR]

Carbon neutrality is an important policy in the current global response to climate change and has been widely recognized by various industries. In the process of promoting carbon neutrality, new energy plays a pivotal role. In this study, the definition and connotation of new energy and its role and specific operation in the energy transition of carbon neutrality are firstly explained. Promoting new energy development requires significant green and low-carbon investments. Taking China as an example, this paper analyzes the opportunities brought by the carbon neutral process to the field of green finance and analyzes the main features and development trends of green finance in China at present. Then this paper proposes policy recommendations to strengthen the development of green finance in China in terms of improving the green financial policy system, enhancing the supply capacity of green financial services, and optimizing the supporting environment for green financial development. Finally, this paper analyzes the measures and experiences of the United States in promoting low-carbon development and proposes countermeasures for China's low-carbon development on the basis of the five major relationships that need attention in China's carbon-neutral process. That is, strengthen the top-level design and improve the regulatory policy system; optimize the energy structure and increase the proportion of clean energy; optimize the industrial structure and reduce energy consumption in key industries; build a complete low-carbon technology system and promote low-carbon technology research and development and demonstration applications, and encourage local conditions to explore low-carbon development paths. The development of green finance can contribute to the advancement of new energy technologies, thus contributing to the achievement of carbon neutrality goals. [ABSTRACT FROM AUTHOR]

This paper uses a sample of 1,867 firms that participate in the "Top-10,000 Energy- Consuming Enterprises Program" in China and aims to identify strategic traders in its pilot emissions trading scheme. Firms included in the ETS can exert their market power and manipulate allowance prices to achieve low compliance costs, which will consequently influence the effectiveness of this platform. This is of great importance to regulators or designers of this system in identifying these strategic traders and understanding their impact. We follow the basic principle proposed by Godal (2005) and develop a simple and implementable empirical procedure to study firm-level data from seven pilot programs in China. The results show that strategic traders exist with clear regional and sectoral differences. As a consequence of strategic trading by these firms, the overall volume of trading falls remarkably, with a clear increase in total compliance costs. [ABSTRACT FROM AUTHOR]

The present paper aims to reliably depict the impact of the European Union Emissions Trading Scheme (EU ETS) on Spain under different assumptions about the industries involved. Prior analyses, based either on highly aggregated macroeconomic or specific electricity industry models, have been limited in degree of detail or scope. Two types of modeling were combined in the present study: general equilibrium was used to assess the impact on different industries and to explain cross-industry changes, and partial equilibrium to suitably model the complex and crucial electricity system. Combining and interrelating these two models yields the effects on price, carbon dioxide (CO2) emissions and distributional patterns in Spain of both the current policy and of an alternative in which all industries take part in the EU ETS. Since Spain is a key participant in this scheme, the conclusions and policy implications stemming from this paper are relevant to and useful for post-Kyoto arrangements. [ABSTRACT FROM AUTHOR]

The intention of this paper is to (i) introduce a multi-regional dynamic emissions trading model and (ii) examine the potential impact of an emissions trading scheme (ETS) on the long-term evolution of energy technologies from national and regional perspectives in China. The establishment of this model is a salutary attempt to Sinicize the global integrated assessment model that combines economy, energy, and environment systems. The simulation results indicate that: (1) for majority of regions, ETS is more effective in cutting CO2 emissions than a harmonized carbon tax (HCT), but this might not be true for the entire country, which means that these two options have little difference in overall carbon reduction; (2) carbon tax policy is a more cost-effective option in curbing CO2 with respect to ETS in the long run; (3) neither ETS nor pure carbon tax provide enough incentives for the breakthrough of carbon-free energy technologies, which illustrates that matching with some other support policies, such as subsidies and R&D investment, is essential to extend the niche market; and (4) In the context of ETS, the diffusion of non-fossil technologies in regions that act as sellers performs much better than this diffusion in the buyer regions. [ABSTRACT FROM AUTHOR]

The emissions trading scheme has recently become an important emissions reduction mechanism in China. The initial quota allocation is one of the key points in its design, which includes the initial quota allocation criterion and allocation method. In this paper, we analyze the regional macroeconomic impacts of emissions trading in China under different quota allocation criteria and allocation methods using a multiregional computable general equilibrium (CGE) model. The results show that the Ability-to-Pay criterion is better than the other criteria, as it can lead to fewer macroeconomic costs and welfare losses; narrow the economic gap between the eastern, central and western regions; and guide investment into the western regions. Comparing free allocation and auction, it is determined that free allocation leads to lower macroeconomic costs, while auction is better at adjusting the industrial structure. This indicates that a hybrid allocation method is preferable. [ABSTRACT FROM AUTHOR]

This paper investigates the effect of a carbon price on wholesale electricity prices and carbon-pass-through rates in the states comprising the Australian National Electricity Market (NEM). The methodology utilize an agent-based model, which contains many features salient to the NEM including intra-state and inter-state transmission branches, regional location of generators and load centres and accommodation of unit commitment features. The model uses a Direct Current Optimal Power Flow (DC OPF) algorithm to determine optimal dispatch of generation plant, power flows on transmission branches and wholesale prices. The results include sensitivity analysis of carbon prices on wholesale prices and carbon pass-through rates for different states within the NEM. [ABSTRACT FROM AUTHOR]

This paper proposes a new framework for integrated assessment models of global environmental issues, including energy, climate, land use, macroeconomics, and environmental impacts. We conducted simulations on carbon emission stabilization in regions specified at the Third Conference of the Parties to the United Nations Framework Conventions on Climate Change (UNFCCC/COP3). Adaptation strategies including technology choice, conservation and carbon emission certificate trade are evaluated. We find that carbon certificate trade is potentially effective in averaging relative impact in macroeconomic activity. [ABSTRACT FROM AUTHOR]

This paper uses the newly developed RICE-98 model to analyze the economics of the Kyoto Protocol. It analyzes versions of the Kyoto Protocol that have different approaches to trading emissions rights and compares these with efficient approaches. The major conclusions are: (a) the net global cost of the Kyoto Protocol is $716 billion in present value, (b) the United States bears almost two-thirds of the global cost; and (c) the benefit-cost ratio of the Kyoto Protocol is 1/7. Additionally, the emissions strategy is highly cost-ineffective, with the global temperature reduction achieved at a cost almost 8 times the cost of a strategy which is cost-effective in terms of "where" and "when" efficiency. These conclusions assume that trading in carbon permits is allowed among the Annex I countries. [ABSTRACT FROM AUTHOR]