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A good risk warning model is an effective way to guarantee the stable operation of the carbon market and exert its emission reduction function. This paper takes the China's pilot carbon market as the research object and measures the carbon market risk by ARMA-GARCH-VaR. Then, influential factors are selected as non-market characteristics from the perspective of causality and incorporated into the risk warning model, and SMOTE and SMOTEENN are introduced to deal with the unbalanced samples. Results show that (1) The risk fluctuations of Beijing and Shenzhen carbon market are large, and the risk fluctuations of Guangdong carbon market are relatively smooth in the early period and larger in the recent period. (2) Air quality, average daily temperature, CSI 300, power coal, natural gas, European carbon market, exchange rate, and Baidu index are all important factors in the risk volatility of carbon market. (3) The Classification Decision Tree (CDT) has the best performance. CDT has the best performance in Guangdong carbon market, SMOTE-CDT has the best performance in Hubei carbon market, and SMOTEENN-CDT has the best performance in Shanghai carbon market, in which SMOTEENN-CDT has a 76% Recall. The non-equilibrium treatment improves the overall Recall, and the risk warning model after non-equilibrium treatment can avoid missing important risk points. This paper can provide a certain degree of reference for the improvement of carbon trading market and risk management. [Display omitted] • A carbon market warning model is constructed. • The average VaR of the carbon trading markets in Shenzhen and Beijing is larger. • CDT performs better in market risk warning. • The model improves 34.8% in the avoidance of risk compared with other models. [ABSTRACT FROM AUTHOR]

This paper addresses the significant challenges faced by distribution system operators (DSOs) in competitive electricity markets due to uncertainties arising from electricity markets, electric vehicles (EVs), and conventional loads. To tackle these challenges, this paper proposes a pseudo-local reserve market between the DSO and EVs, which enables the DSO to integrate EV flexibility into the overall market framework while compensating for deviations in the conventional load across the wholesale electricity market. Furthermore, a two-stage framework is developed to facilitate the participation of EVs in electricity markets. In the first stage, the reserve capacity of EVs is integrated into the decision-making process for day-ahead bidding, taking into account uncertainties of the load and electricity. In the second stage, the day-ahead results are coordinated to enable the efficient dispatch of EVs for real-time market participation. To assess the efficacy of the proposed framework, a case study is conducted within a 31-node distribution system situated on a university campus located in Guangdong, China. This paper investigates the economic impact of load deviation constraints on EV reserves, revealing a penalty reduction of 3100 CNY for a daily reservation of 1000 EVs and a net profit increase of 1300 CNY for DSOs utilizing reserves. It further introduces a method for quantifying reserve capacity, enhancing DSO decision-making accuracy. • A pseudo-local reserve market is established considering EV's reserve potential. • Optimal bidding strategy for DSO in China's electricity markets is constructed. • A framework for EV coordinated V2G operation is developed. • The proposed method can limit load deviation cost for more profits. [ABSTRACT FROM AUTHOR]

Along with habitat destruction and the intensification of climate change, economic and social development is threatening the living of species. In the context of China's domestic economic circulation, the spatial structure of biodiversity loss is complicated by the decentralization of production, with many regions affecting the survival of species in other regions. Based on the environmentally extended MRIO model, this paper calculated the subnational biodiversity loss footprint through structural path analysis and social network analysis, identified the regional linkages and spatial networks of species loss, and traced the conservation responsibility to specific sectors. Our findings indicate that Yunnan, Tibet, Guangdong, and Sichuan possess the most significant biodiversity footprints, comprising over 40% of the total footprint. In terms of threat patterns, Yunnan and Tibet have the largest intra-regional footprints, indicating their important impact on species within the region; Guangdong and Zhejiang have the largest extra-regional footprints, indicating their role in threatening other species through cross-regional trades. The primary industry, tap water and food and tobacco sectors are major biodiversity footprint producers. Overall, some eastern and coastal areas are the final drivers of biodiversity loss in China, driven by increasingly complex trade links. Notably, the directionality of species loss in biodiversity hotspots is evident, with Shandong and Guangdong significantly influencing the biodiversity of Yunnan and Guangxi, respectively. This study systematically analyzed the complete network of biodiversity loss and divided four biodiversity protection communities to promote the realization of trans-regional protection and compensation. Examining the biodiversity loss through the lens of networks, and connecting economic activities to species, serves as a warning to decision-making bodies that a future of increasingly intricate domestic trade could pose a critical threat to biodiversity, necessitating collaborative conservation efforts. [Display omitted] • 1.Inter-provincial trade contributes to the complex structure of biodiversity loss. • The characteristics of biodiversity footprints vary widely among provinces. • Some eastern and coastal provinces are the final drivers of biodiversity loss. • Four protection communities are established through social network analysis. [ABSTRACT FROM AUTHOR]

Community shared solar (CSS) program has great potentials in contributing to the complete decarbonization of the power sectors worldwide. Few research have focused on its potential diffusion from the user perspective. This paper fills the gap by conducting a survey-based unlabeled choice experiment in the Guangdong Province, China to investigate the determinants of potential users' willingness to participate in CSS programs. We analyzed the survey data using a random parameter logit model. Our results show that users are more likely to participate in CSS programs with lower upfront payment, trialability, shorter payback period, a public utility as provider and larger impact on climate change mitigation. However, they are likely to accept longer payback period in CSS programs with higher participation rate because of the potential benefit from interpersonal communication. Users' previous knowledge of CSS programs and income will also increase their willingness to participate in CSS programs with higher upfront payment. Our results provide important implications for designing policies and business models to promote the distributive renewable energy in China. • Community shared solar is widely accepted among surveyed individuals in our choice experiment. • The business model, and the ownership structure of community shared solar affect its potential adoption. • The interpersonal communication and public promotion of community shared solar program can increase its popularity. [ABSTRACT FROM AUTHOR]

This paper examines the risk spillover effect between the carbon market and the stock market in China and the role of corporate social responsibility (CSR) on this effect. Employing Beijing, Hubei, and Guangdong carbon markets, we apply time-domain and frequency-domain spillover approaches and find that during the Chinese stock market crisis in 2015, risk spillovers from the stock market to the carbon market were more pronounced. Additionally, CSR firms are more dominant as information transmitters than those non-CSR (NCSR) firms in the carbon market. However, plausibly, due to the infancy of carbon trading, our results show that the level of connectedness between the carbon market and the stock market in China is relatively low. [ABSTRACT FROM AUTHOR]

As a new clean and sustainable energy that can reduce carbon emissions, offshore wind energy has received much more attention in recent years. In response to the complexity and flexibility issues in the decision-making process of offshore wind power investment, this paper proposes an investment decision framework based on a bidimensional binominal lattice that embeds deferral options, aiming to derive the appropriate development timing and investment potential for corporate investors in uncertain environment of market and technological development. And the investment model embedding revenue from carbon emission reduction highlights the advantages of clean energy. Furthermore, we creatively compare the policy effects of three subsidy schemes using the model as a policy analysis tool and use scenario analysis to simulate the impacts of dynamic adjustments in subsidies on investment decisions. For the case of an offshore wind power plant in Guangdong province, China, we find that the local government has to provide a subsidy of 0.11 CNY/kWh to allow the project to be profitable. In the absence of subsidies, however, it is preferable to defer the decision of investment with a wait-and-see attitude. Given the same total government financial input, we find that it will be more beneficial for the government to provide R&D subsidy than electricity tariff subsidy and operation subsidy in terms of long-term sustainable development. Our findings also demonstrate that considerations in the carbon trading market will also contribute to the development of offshore wind power. The conclusions of this article can provide valuable guidelines for corporate investors to adjust the appropriate development timing and for policymakers to optimize subsidy allocation, so as to promote the healthy development of offshore wind power and low-carbon transition. [ABSTRACT FROM AUTHOR]

With the rapid urbanization and industrialization, the uneven distribution of polluting enterprises among different socioeconomic groups has become a prominent environmental social problem in transitional China but is rarely recognized. This paper introduces environmental justice theories in industrial location studies. A heuristic analytical framework is proposed to analyze the distribution and determinants of polluting enterprises in Guangdong, China, a highly developed region but with high social and economic inequality. Polluting enterprises are mostly agglomerated in the Pearl River Delta (PRD) region with the rest in the mountainous and hilly non-PRD region. Bivariate local spatial autocorrelation analysis shows the colocation of polluting enterprises and migrants. Our regression results reveal that the county where many migrant residents are concentrated historically appears to attract many polluting firms to enter. However, less firms are found in the county with many highly educated groups and ethnic minorities. Land space planning, environmental regulation, labor costs, and agglomeration economy have driven the distribution of new polluting enterprises, whereas the influences of traffic accessibility and border effect do not work actually. To some extent, the distribution of new polluting enterprises must be recognized as a predictable result of the characteristics of prior demographic distribution. • A heuristic analytical framework is provided to study the distribution and determinants of polluting enterprises. • The characteristics of prior demographic distribution have driven the geography of new polluting enterprises. • The special socioeconomic determinants associated with hukou matter a lot in the Chinese context. [ABSTRACT FROM AUTHOR]

This paper proposes a new prediction method incorporating a set of measuring models applicable to the financing efficiency of China's carbon market to quantify such market's maturity, trading risk coefficient, and financing income. Our theoretical analysis indicates that the price of carbon emission quota essentially affects the financing efficiency of carbon market. While a robust safeguard measure to obtain a respectable income from carbon market financing is the long-term average quota price exceeding the initial quota price. Empirical findings derived from China's emissions trading scheme pilots reveal that these pilots can be divided into the growth-oriented market (i.e. Guangdong whose financing capacity is always significant), the balance-oriented market (i.e. Shanghai and Hubei whose quota pricing mechanisms and the financing level of carbon markets both maturely develop), and the risk-oriented market (i.e. Beijing whose quota price runs at a high-level with an intense financing income volatility). It is therefore achieved that carbon market's maturity level and quota price volatility are both robustly explicable for different financing effects among these pilots. Our key findings show that expanding the coverage of quota trading parties, stabilizing carbon price, and promoting carbon asset management help to improve the financing efficiency of carbon market. • The financing mechanism is analyzed with clarifying its main influence factors. • A stochastic process is used to build a price simulation equation that meets the operation law of China's carbon market. • An income model is built and thus evaluate market financing effect based on price expression and financing mechanism. • The financing effect of China's 8 pilot markets is measured, and thus 3 kinds of development modes are proposed. [ABSTRACT FROM AUTHOR]

The switch of coal to gas in power generation enterprises is of great significance for tackling air pollution and mitigating climate change. Under China's emissions trading system, power generation enterprises have incentives to switch to low-carbon clean power, and the cost-benefit of switching is the basis of their decision-making. To this end, this paper studied the impact of changes in carbon and fuel prices on switching prices. The results show that: (1) For per yuan increase in the amount of natural gas, coal, and carbon, the switching price increased 4.768, decreased 5.845 and decreased 0.9994 yuan, respectively. (2) The carbon price is relatively low, and the impact of it on switching price is small. (3) The fluctuation in the carbon price, coal price and the natural gas price has a hysteresis effect on switching price. [Display omitted] • This study assesses the coal-to-gas switch possibility in Guangdong Province. • A new mode of operation of coal-to-gas switch is published. • For per yuan increase of carbon price, the switching price decreased 0.99 yuan. • The impact of carbon price fluctuations on switching price has a lag effect. [ABSTRACT FROM AUTHOR]