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The allowance mechanism is one of the core and sensitive aspects in the design of a carbon emissions trading scheme and affects the compliance cost for each entity covered under the scheme. By examining China’s allowance mechanism from two aspects-allowance allocation and allowance distribution, this paper compares China’s carbon trading pilots with the EU Emissions Trading Scheme and California Cap-and-Trade Program. The comparison identifies the unique features in allowance mechanism and particular issues that affect the efficiency of the pilots. The paper also recommends courses of action to strengthen China’s existing pilots and to build valuable experiences for the establishment of the national cap-and-trade system in China. [ABSTRACT FROM AUTHOR]

• An energy-consumption permit trading scheme (ECPTS) was implemented in China in 2016. • This policy's contribution to reducing energy intensity is proved by a PSM-DID model. • The pilot ECPTS generated an average energy saving of about 43 Mtce in 2016–2019. • Different mediating effects of industrial structure and energy structure are proved. • A national ECPTS is suggested to promote linkage with the emissions trading scheme. The Chinese government implemented the energy-consumption permit trading scheme (ECPTS) pilot program in 2016, in order to achieve energy saving and carbon reduction. Based on the PSM-DID model, we attempt to test the effects of the ECPTS on energy consumption and energy intensity. With a counterfactual simulation, this paper also evaluates the potential gains and different mechanisms of this policy. The results show that, under the constraints of the established resources and policy efficiency, there is a positive relationship between the ECPTS and low-carbon economic transformation; the implementation of the above policy in the pilot provinces brought about an average energy saving of 43 Mtce during the period of 2016–2019. However, the potential gains of this policy need to be further increased to meet China's energy control targets. Additionally, a complete mediating effect of the energy structure indicates that the impact of the ECPTS on energy consumption and energy intensity depends significantly on energy structure adjustments. Finally, this paper highlights the key policy implications associated with the empirical results. [ABSTRACT FROM AUTHOR]

The prioritized purpose of this dissertation is to put forward a scientific and plausible interval of carbon price benchmark on the unified carbon trading market, of which will be scheduled to be established in the year of 2016. A model named EMD–GARCH that integrated Empirical Mode Decomposition (EMD) with Generalized Autoregressive Conditionally Heteroskedastic (GARCH) together is presented here in order to forecast the carbon price of the five pilots (Shenzhen, Shanghai, Beijing, Guangdong, and Tianjin) in 2016 so as to provide exogenous data for later analysis. For further study, a recursive dynamic Computable General Equilibrium (CGE) model will be structured to explore the impacts on China’s macroeconomics, environmental quality, and energy demand respectively under 8 different simulation scenarios, which are being designed in terms of the aforementioned calculated carbon price outcome. The simulation results illustrate that the unified carbon price policy will exert a comprehensive effect on China in various perspectives that we discussed in this paper. Moreover, regarding the carbon price scenarios, the price level by itself generates a different degree of impacts in improving the environmental quality, decreasing the energy demand, and increasing the macroeconomic growth. Consequently, based on the analysis of those three approaches mix in this study, we suggest the alternative interval of carbon price benchmark in the national unified carbon trading market with a lower bound of 30 yuan/tCO 2 to an upper bound of 50 yuan/tCO 2 . [ABSTRACT FROM AUTHOR]

• Carbon emissions trading inhibits green technology innovation in the short run. • Carbon emissions trading will reduce the carbon emissions and carbon intensity greatly at this stage. • Carbon emissions trading has a crowding-out effect on R&D investment and increases the carbon trading price, which inhibited green technology innovation. • It is necessary to control the scale of carbon emission quota and diversify the subjects of carbon trading. Carbon emissions trading is an important measure to promote high-quality economic development. Based on the panel data of 30 provincial administrative regions in China from 2008 to 2017, this paper uses the difference-in-differences method to analyze the impact of carbon emissions trading on green technology innovation. The results show that: (1) Carbon emissions trading inhibits green technology innovation in the current stage, but greatly reduces carbon emissions and carbon intensity; (2) Carbon price and R&D investment are the mainly working channels, carbon emissions trading has a crowding-out effect on corporates' R&D investment and increases the carbon trading price, which in turn inhibits green technology innovation; (3) Carbon emissions trading has a stronger inhibitory effect on green technology innovation in eastern regions and regions with low emission intensity. Local government competition positively moderates the green technology innovation effect of carbon emissions trading. However, the command-controlled environmental regulations and the scale of the carbon emission quota have opposite effects, with the compatibility of environmental regulation tools remaining to be resolved. Therefore, it is necessary to control the scale of carbon emission quota to diversify the subjects of carbon trading and strengthen the impact of market-incentive environmental regulation tools. [ABSTRACT FROM AUTHOR]

• It evaluates the effect of China's ETS on non-fossil energy development. • It analyzes ETS's effects from energy type, pilot, and pilot-energy type aspects. • The ETS has the most significant promoting effect on hydropower and photovoltaics. • Carbon price plays a positive role in moderating the effect of China's ETS. Emissions Trading Scheme (ETS) can internalize the environmental costs of fossil energy consumption and encourage enterprises to consume non-fossil energy, which is crucial for People's Republic of China (PRC) to achieve the contribution target of the Paris Agreement cost-effectively. However, whether the ETS in PRC can promote non-fossil energy development remains to be answered. This paper uses a difference-in-differences model to evaluate the effect of the ETS on non-fossil energy development in PRC. Using provincial monthly panel data from January 2004 to December 2019, we find that (1) the ETS has significantly promoted non-fossil energy development in PRC, increasing the monthly average share of non-fossil energy power generation in total power generation by 2.326 percentage points, which has been verified by a series of robustness tests. (2) The effect of the ETS on non-fossil energy development is heterogeneous by energy type, pilot region, and pilot-energy type. The ETS has significantly increased the share of hydropower and photovoltaic power generation, and has significantly promoted non-fossil energy development in Guangdong; meanwhile, the ETS has significantly increased the share of hydropower and nuclear power in Guangdong, and the share of wind power and photovoltaic power in Hubei. (3) The higher the carbon price, the greater the role of the ETS in promoting non fossil energy development. [ABSTRACT FROM AUTHOR]

• A modified dynamic recursive CGE model is constructed. • Renewable energy growth is considerable only if ETS revenue is used. • Broader renewable energy subsidies are better than ones with narrow scope. • A small part of ETS revenue should be used to subsidize residents for social stability. Emission Trading Scheme (ETS) and renewable energy generation are emission reduction methods in most countries in the world. However, few studies have focused on the impact of ETS on renewable energy. The question is, can carbon trading promote renewable energy generation? This paper first analyzes different distribution strategies of ETS revenue by applying dynamic recursive computable general equilibrium model with multi-sectors. Practical scenarios and better options of distribution of ETS revenue by a comprehensive evaluation based on entropy weight method are proposed. The results show that ETS with no subsidy to renewable will reduce the demand for energy, increase the cost of renewable energy sources and decrease the generation. ETS will be the spring of renewable energy generation when most of the revenue is used for all kinds of renewable energy sources, instead of some of them. The growth of renewable energy generation is also substantial. It is necessary that a small portion of ETS revenue should be used to subsidize residents to reduce the gap between the rich and the poor. If this income is used for government investment and consumption, it will also help to mitigate economic losses, which is caused by the direction of investment by the Chinese government. [ABSTRACT FROM AUTHOR]