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"Carbon Peaking and Carbon Neutrality" is one of the important tasks of China's current and future economic construction and development, but the carbon emission reduction effect of High-speed rail (HSR) has not yet been fully studied. In this paper, based on the panel data of 274 cities in China from 2003 to 2016, we take the opening of HSR in the cities as a "Quasi-natural Experiment", and construct the Multi-period Difference-in-Difference Model to explore whether the opening of HSR can reduce carbon emissions of cities along the route, and use the mediating effect model and moderating effect model to further analyze its internal mechanisms. We find that:①The opening of HSR can significantly reduce the carbon emissions of cities along the route, and the opening of HSR in a city will reduce the carbon emissions of the city by about 2.4% on average, and this carbon emission reduction effect usually manifests significantly in the first year after the opening of HSR, and increases year by year thereafter.②The mechanism test shows that the traffic substitution effect, the optimization of the industrial structure and the promotion of economic agglomeration have partial mediating effect on the influence between the opening of HSR and urban carbon emissions. In addition, the increase in the intensity of government environmental regulations can strengthen the effect of the opening of HSR on reducing urban carbon emissions.③The regional heterogeneity research shows that the opening of HSR has a more significant impact on the carbon emissions of cities in the eastern coastal region and western region of China. Moreover, in the western region, the reduction effect of the opening of HSR on carbon emissions is only reflected in the key cities rather than ordinary prefecture-level cities. This paper provides certain reference significance for promoting low-carbon and green economy and helping China to achieve the "Carbon Neutrality" climate action goal. [ABSTRACT FROM AUTHOR]

Global warming can be solved with carbon trading. When carbon emissions become a commodity, it can be a powerful motivator for companies to optimize production capacity and innovate technologically. The goal of this paper is to examine the way in which China's carbon emissions trading policy (CET) influences firm technological innovation in seven pilot regions, using a sample of firms in eight high-carbon industries. We employ difference-in-difference (DID) as well as DID-based propensity score matching (PSM-DID) models to investigate the influence of China's carbon emission policy on firms' technological innovation by using 4745 observations of 749 A-share listed firms in eight high-carbon industries in mainland China from 2007 to 2021. According to the findings, China's CET policy significantly boosts firms' technological innovation, and this beneficial effect persists even after a series of robustness tests that change the policy's implementation year and the technological innovation measure. Further analysis shows that this positive effect is heterogeneous across high-carbon industries and firms with different ownership. In addition, based on the external governance perspective, we find that CET policy performs better in firms in high-carbon industries with a sizable portion of ownership held by institutional investors. This study suggests the effectiveness of CET policy in promoting firms' technological innovation, confirms empirical evidence for Porter's hypothesis, and provides a basis for Chinese firms to achieve their emission reduction targets by improving technological innovation. [ABSTRACT FROM AUTHOR]

Under the current technical conditions and power mix in China, flexible modified thermal power units must provide enough flexibility resources for new power system since the potential of flexible resource has not been fully used. In this paper, a bi-level model is proposed to characterize the decision behavior of the generation company in the case of individual rationality and generation-side coordination. The model fully considers the concrete conditions of China and the technical differences between thermal power units in the multi-market (including energy, ancillary services and carbon emission trading market). The bi-level model could be reconstructed into an equivalent MILP model which can be solved directly. The strategic bidding behavior of small capacity units in the energy market show the urgency to enhance the transmission of deep peak regulation price compensation signals. The coupling of multi market is likely to be the most effective policy package to guide large-scale units to play a supporting role and small-scale units to assume the regulating function to play a role in the transition to a low-carbon future. Long-term policy mechanisms should be developed, combining electricity transition with the mechanisms in the carbon emission trading market to achieve the integral maximization of environmental benefit. • A bi-level model coupling energy, ancillary services and CET market is proposed. • A clearing model from the perspective of system integral orientation is proposed. • The technical differences of coal-fired power units are fully considered. • The analysis results provide policy implications tailored to the Chinese context. [ABSTRACT FROM AUTHOR]

China has a high agricultural output and is a significant carbon emitter; thus, reducing carbon emissions in the agricultural sector is crucial for achieving carbon neutrality. To address this, China implemented the National Agricultural Sustainable Development Experimental Demonstration Zone policy in 2018, in which reducing agricultural carbon emissions (ACE) is a subject of concern. We explore the impact of the policy on agricultural carbon emissions reduction (ACER) using the propensity score matching and differences-in-differences (PSM-DID) methods with a series of robustness tests based on the panel data of prefecture-level cities in China from 2011 to 2020. The results indicate that: (1) the policy significantly reduces carbon emissions and impacts carbon emission sources, with the results passing the robustness tests. (2) According to the mechanism test, agricultural financial support mediates carbon emissions reduction, and the policy reduces these emissions by decreasing the intensity of fiscal support. (3) The heterogeneity analysis illustrates that the carbon emissions reduction effect is more evident in cities with a small urban-rural income gap and a high proportion of agricultural output value. Finally, we provide suggestions to reduce carbon emissions from the perspective of national and local governments. This paper is particularly relevant for achieving sustainable agriculture development. [ABSTRACT FROM AUTHOR]

As China's largest source of carbon emissions, the power sector's transition to lower levels of carbon emission intensity is critical to achieving China's carbon emission (CE) reduction commitments. In this paper, the CE intensity of electricity generation (CEIE) in 30 provinces from 2000 to 2019 is calculated, and the temporal evolution and spatial distribution characteristics of CEIE are discussed. Then, the spatial spillover effect of each driving factor on CEIE is calculated using the spatial Durbin model. The CEIE reveals a first increasing and then decreasing trend, and the regional differences gradually decrease. Simultaneously, the CEIE has a significant positive spatial correlation, and the overall spatial distribution pattern is high in the northeast and low in the southwest of the country. Economic development and foreign trade both inhibit CEIE, while electricity consumption, research and development, unit operation level, and power structure all promote CEIE. Each driving factor's influence on regional CEIE exerts a spatial spillover effect. Among them, the spatial positive spillover effects of industrial structure and environmental protection investment are the most obvious, while the spatial spillover effects of other driving factors are not apparent. Furthermore, these findings provide practical insights into policy adjustments and the coordinated interregional development of low-carbon electricity. [ABSTRACT FROM AUTHOR]

The Yangtze River Delta region is one of the key areas of energy transition for China's carbon neutrality. The pathways to carbon neutrality are diverse in the regional level due to the different conditions on the energy supply and demand side. How to construct comprehensive assessment index system and evaluate regional pathways to carbon neutrality is an urgent problem to be solved. To fill this gap, this paper evaluates the carbon neutrality pathways of supply-side and demand-side coordination in the Yangtze River Delta region using the Low Emissions Analysis Platform with five scenarios (64 sub-scenarios): Business as usual, energy intensity decrease, energy structure reform, power supply technology innovation and policies mix. The simulation results indicate that: (1) 22 of the 64 sub-scenarios can achieve carbon neutrality by 2060. (2) In energy intensity decrease scenario, an annual 6% reduction in energy intensity could achieve carbon neutrality before 2060. (3) The policies mix scenario can lead to 21 sub-scenarios with pathways to achieve carbon neutrality when the average annual energy intensity decreases by 4% or more. Additionally, the end-use sectors electrification level should reach 64.19% at least by 2060. (4) There can be 14 sub-scenarios to achieve zero carbon emissions in the power plant sector, but annual energy intensity should be reduced by at least 4%. Applying Analytic Hierarchy Process analysis, the article evaluated the 22 sub-scenarios with the index of regional pathways to carbon neutrality. The result shows that the mixed policies of energy intensity reduction, energy structure reformation and power technology innovation can promote the coordination of supply-side and demand-side. This study can provide reference for policymakers to formulate effective policies to realize carbon neutrality. • The coordination of energy supply and energy demand is assessed. • A model with five scenarios (64 sub-scenarios) is developed for carbon neutrality. • Energy intensity drops by 4% or more can lead to multiple carbon neutral pathways. • A comprehensive assessment index of regional carbon neutral pathways is developed. [ABSTRACT FROM AUTHOR]

With the gradual strengthening of environmental supervision, how to coordinate the relationship between environmental protection and full employment has become an urgent problem. This paper takes China's carbon emission trading policy as the research subject, and evaluates the employment effect of carbon emission trading policy from the perspective of micro enterprises under the premise of considering the spatial spillover effect. This paper aims to verify and evaluate the spatial spillover effect of China's carbon emission trading pilot policy on labor demand of enterprises, and study the effect of environmental policies on the employment market in China. Firstly, from the theoretical point of view, comparisons among the differences of the average employment effect, spillover effect and total effect coefficient of carbon trading right policy are conducted under the condition of spillover effect or not. Secondly, from the empirical perspective and relaxing the STUVA conditions, a Triple Difference Model is constructed to evaluate the impact of carbon emission trading policy on the labor demand of enterprises by using the panel data of China A-share listed companies in Shanghai and Shenzhen from 2008 to 2017. Thirdly, this paper further uses the synthetic control method to analyze the employment effect differences of carbon emission trading policies in different pilot areas of China. The results show that the carbon emission trading policy in China has an about 10 percent positive spillover effect on the neighboring provinces in pilot areas. Moreover, the results indicate that China's carbon emission trading policy has generated some employment dividend, and the total effect is about 11.5 percent when the ratio of individual sample is considered. In addition, the impact of carbon emission trading policy on employment is gradually increasing, and the employment effect of carbon trading policies in different pilot areas of China is quite dissimilar. The findings of this paper confirm the positive employment effect of China's carbon emission trading policy, and have important policy implications for the further promotion of the national carbon emission trading market. At the same time, it helps to clarify the relationship between environmental protection and full employment. • Verifies and evaluates the spatial spillover effect of carbon trading policy. • Constructs a Triple Difference Model for evaluating the impact of carbon trading policies on the labor demand of enterprises. • Finds about 10% positive spillover effect of the carbon emission rights trading policy in China. • Shows about 11.5% total employment effect of carbon emission trading policy when the individual sample ratio was considered. [ABSTRACT FROM AUTHOR]

The rapid urbanization in China over the last decade has resulted in increased carbon emissions from the building materials industry. This paper seeks to reach a trade-off between economic benefits and carbon emissions in the building materials industry by integrating a carbon emissions quota allocation (CEQA) based equilibrium strategy under a carbon emissions trading (CET) mechanism that fully considers the stakeholder relationships between the regional authority and the building materials suppliers. An interactive solution approach with fuzzy random variables (FRVs) is designed to determine the trade-off between these decision makers. The methodology is then applied to a real world case to demonstrate its practicality and efficiency. Comprehensive discussions under different policy control scenarios and comparative analysis of two carbon reduction policies are conducted to assist policy makers. It was found that the proposed methodology encouraged building materials suppliers to adjust their production and carbon emissions quota purchase plans, further assisting regional authority to control the industry's emissions performance by providing a “win-win” solution for the regional authority and suppliers when making logical economic-environmental trade-off decisions. [ABSTRACT FROM AUTHOR]

In this paper, the impact of the “Carbon Neutral Growth from 2020” (CNG2020) strategy on airline efficiency is analyzed based on the predicted data of 29 international airlines during 2021–2023. The data is predicted through neural network. Following the principle of CNG2020 strategy, we calculate the emission limit for each airline. Two models, Network Range Adjusted Measure with natural disposability and Network Range Adjusted Measure with managerial disposability, are proposed to discuss the efficiency change when the CNG2020 strategy is considered. The following findings are gotten: 1. Under natural disposability, the indices related with undesirable output have a larger role in deciding benchmarking airline. 2. For most of the 29 airlines, CNG2020 strategy has little influence on their efficiency. [ABSTRACT FROM AUTHOR]

This paper examines the impact of a carbon trading pilot policy on the low-carbon international competitiveness of an industry to test whether creating a carbon market causes the Porter effect. Using a sample of 33 industries in 30 provinces in China from 2009 to 2016 with a difference-in-difference-in-difference model (DDD) and a series of robustness tests, we find evidence of a significant positive influence of a carbon trading pilot policy on the low-carbon international competitiveness of industries covered by the pilot programs. Research on its influencing mechanism reveals that a carbon trading pilot policy promotes the low-carbon international competitiveness of industries by driving low-carbon technological progress. Furthermore, a heterogeneity analysis of industry characteristics and carbon allowance allocation methods in different pilots indicates that the impact of a carbon trading pilot policy on industry low-carbon international competitiveness is reflected mainly in industries with low-carbon emissions, high state-owned capital, and high export intensity. Compared with the grandfather method and the historical intensity method, the low-carbon international competitiveness of an industry is significantly increased when the benchmarking method is used. The results of this paper offer important insights for improving the policy design of a nationwide carbon market, as well as a reference point for other countries and regions, especially developing countries, in establishing a carbon trading market. [ABSTRACT FROM AUTHOR]

The shortage of landfill space and the environmental pollution from urbanization and industrialization have led to an increase in the recycling and reuse of construction and demolition waste (CDW). Based on the technological paradigm, this paper proposes a closed-loop supply chain (CLSC) that integrates forward and reverse logistics and has multiple centers that regulate end-of-life CDW recycling and promote new product remanufacturing. Carbon price (CP) and carbon trading (CT) policies are then innovatively applied to manage the proposed supply chain, incentivize technological CDW disposal improvements, encourage policy adherence, and ensure that the economic and environmental benefits are built into the proposed CLSC. A mixed integer nonlinear programming model (MINLP) is developed to optimize the proposed CLSC by minimizing the total costs under the two carbon policies, and a real case study from China is given. Scenario analyses under the two carbon polices and practical policy suggestions are given, and comprehensive conclusions are provided in the conclusions. It was found that with the adjustment of recycling ratio, the proposed CDW CLSC was able to minimize total costs and overall carbon emissions. Moreover, the CP policy could improve the CDW recycling ratio from 19.4% to 85.3% and reduced carbon emissions by 6393 tonnes, and the CT policy should be an incentive policy to further encourage a higher recycling ratio and lower carbon emissions. • This paper helps overcome the barriers in waste paradigm shift phase. • This paper proposes a well-built waste disposal closed-loop supply chain. • This paper creatively applies carbon policies in waste management supply chain. • Carbon price policy improves waste recycling ratio and reduces carbon emissions. • Carbon trading is the incentive to regulate waste recycling and carbon emissions. [ABSTRACT FROM AUTHOR]

Carbon dioxide (CO 2) emissions reduction has become a core task with the goal of "emission peak and carbon neutrality", in which green innovation plays an important role. This paper takes the fast-tracking green patent applications (FGPA) system in China as a quasi-natural experiment to empirically study the impact of green innovation incentive-based policies (GIIPs) on CO 2 emissions in Chinese cities by applying a continuous difference-in-difference approach. The results show that the CO 2 emissions of cities in the treatment group are significantly reduced by about 1.6% after the implementation of FGPA relative to that in the control group. After a series of robustness tests, the conclusion is still valid. Furthermore, the significant negative impact on CO 2 emissions is more reflected in cities located in eastern China, cities with lower financial pressure, and cities with more universities. Overall, this study fills up the gap in the empirical research on the impact of FGPA, and casts a new light on the significant environmental performance of GIIPs. The findings obtained through this study are conducive to strengthening and optimizing the implementation of FGPA, and offering policy-makers with a scientific basis of GIIPs to approach the task of reducing CO 2 emissions. [ABSTRACT FROM AUTHOR]

Emission trading scheme (ETS) is considered as a tool to reduce emissions at a low cost, which can effectively promote the carbon peak and carbon neutrality. As the main participants in the carbon emission trading (CET) market, the behavior and strategies for governments and different types of enterprises affect the final emission reduction performance. Taking the national carbon market as an example, this paper constructs a tripartite evolutionary game model including governments and power generation enterprises with different emission reduction capacity to analyze the possible game situations in the development process of the CET market. The results show that with the development of the CET market, the governments and power generation enterprises will have different game results. In order to achieve the optimal stable equilibrium and maximize carbon emission reduction, governments should improve regulatory efficiency and formulate appropriate incentive strategies for excess emission reduction and punishment strategies for insufficient emission reduction. In addition, the initial willingness will not affect the final strategy choice of the three parties. Reasonable free carbon quota ratio, lower technology emission reduction cost and higher carbon price can stimulate the enthusiasm of governments and enterprises to reduce emissions. The above results provide a reference for coordinating the relationships between governments and power generation enterprises with different emission reduction capacity in the construction of the CET market in the future. [ABSTRACT FROM AUTHOR]

To fulfill the goals of sustainable development and emission reduction, China has established the consumption side renewable portfolio standards (RPS) and domestic nationwide carbon emission trading (CET) scheme. However, there are intricate interrelationships between the two mechanisms as they overlap in policy goals and implementation measures, which might lead to policy synergy or policy ineffectiveness. Therefore, investigating the coupling effects in the context of policy coexistence is imperative for policy optimization and realization of the policy objectives. In this study, a simulation model cooperating the electricity market, the excess consumption trading market, the tradeable green certificates (TGC) market and the CET market, based on the system dynamics (SD) methodology is proposed. The paper comprehensively investigated the complex relationship between the four markets and conducted experiments with different scenario settings in RPS quota goal and carbon quota goal. The results illustrate that: (1) Both mechanisms can facilitate the expansion of renewable electricity and improve the power supply structure. (2) The quota goals of the two policies should be reasonably set as they contain both the abovementioned overlapping effects, as well as conflicts in the effects on the total electricity supply and electricity price. (3) The consumption side RPS is conductive for market absorption of renewable electricity with a proper higher RPS quota goal. (4) The TGC market is oversupplied, and the price keep decreasing under the consumption side RPS, more demand incentive mechanisms are required for TGC market. • Implementation mechanism and effects of the consumption side RPS are investigated. • Policy coordination between the consumption side RPS and CET in China are examined. • The effects of consumption side RPS and CET have both overlaps and conflicts. • Ratio of renewable electricity consumption is positively correlated with RPS quota goal. [ABSTRACT FROM AUTHOR]

As the world's largest developing country, China has set the target of "reaching carbon peak by 2030 and carbon neutrality by 2060". China's power sector faces many challenges in reducing carbon emissions. This article forecasts electricity consumption from 2021 to 2060 by selecting five influential elements on power demand. Furthermore, the system dynamics model simulates the carbon emission system on the supply and demand side of the power industry. This paper innovatively incorporates the technology factor of carbon capture, utilization, and storage (CCUS) into the supply-side model. In this study, the process of carbon neutrality is separated into three stages, including carbon peak stage (2020–2030), deep low-carbon stage (2030–2050) and zero-carbon stage (2050–2060). The factors of energy storage technology and CCUS technology make significant contributions in the latter two stages. Based on the different development levels of the variables, three scenarios are set as business-as-usual scenario (BAU), low carbon scenario(LC) and ultra-low carbon scenario (ULC). Then scenario analysis is employed to simulate the carbon emission in the future. The scheme under the ULC scenario is the optimal solution to achieve carbon neutrality. Improving flexible transition of thermal power units and promoting the growth of renewable energy are China's primary strategies of achieving carbon peak and carbon neutrality. • System dynamics model is applied to simulate scenarios on carbon emission. • The carbon emission models of the power supply and demand sides are constructed. • Three scenarios for achieving the dual-carbon target are proposed. • The electric energy substitution and CCUS are investigated in the model. [ABSTRACT FROM AUTHOR]

To fulfill the goals of sustainable development and emission reduction, China has established the consumption side renewable portfolio standards (RPS) and domestic nationwide carbon emission trading (CET) scheme. However, there are intricate interrelationships between the two mechanisms as they overlap in policy goals and implementation measures, which might lead to policy synergy or policy ineffectiveness. Therefore, investigating the coupling effects in the context of policy coexistence is imperative for policy optimization and realization of the policy objectives. In this study, a simulation model cooperating the electricity market, the excess consumption trading market, the tradeable green certificates (TGC) market and the CET market, based on the system dynamics (SD) methodology is proposed. The paper comprehensively investigated the complex relationship between the four markets and conducted experiments with different scenario settings in RPS quota goal and carbon quota goal. The results illustrate that: (1) Both mechanisms can facilitate the expansion of renewable electricity and improve the power supply structure. (2) The quota goals of the two policies should be reasonably set as they contain both the abovementioned overlapping effects, as well as conflicts in the effects on the total electricity supply and electricity price. (3) The consumption side RPS is conductive for market absorption of renewable electricity with a proper higher RPS quota goal. (4) The TGC market is oversupplied, and the price keep decreasing under the consumption side RPS, more demand incentive mechanisms are required for TGC market. • Implementation mechanism and effects of the consumption side RPS are investigated. • Policy coordination between the consumption side RPS and CET in China are examined. • The effects of consumption side RPS and CET have both overlaps and conflicts. • Ratio of renewable electricity consumption is positively correlated with RPS quota goal. [ABSTRACT FROM AUTHOR]

As the world's largest developing country, China has set the target of "reaching carbon peak by 2030 and carbon neutrality by 2060". China's power sector faces many challenges in reducing carbon emissions. This article forecasts electricity consumption from 2021 to 2060 by selecting five influential elements on power demand. Furthermore, the system dynamics model simulates the carbon emission system on the supply and demand side of the power industry. This paper innovatively incorporates the technology factor of carbon capture, utilization, and storage (CCUS) into the supply-side model. In this study, the process of carbon neutrality is separated into three stages, including carbon peak stage (2020–2030), deep low-carbon stage (2030–2050) and zero-carbon stage (2050–2060). The factors of energy storage technology and CCUS technology make significant contributions in the latter two stages. Based on the different development levels of the variables, three scenarios are set as business-as-usual scenario (BAU), low carbon scenario(LC) and ultra-low carbon scenario (ULC). Then scenario analysis is employed to simulate the carbon emission in the future. The scheme under the ULC scenario is the optimal solution to achieve carbon neutrality. Improving flexible transition of thermal power units and promoting the growth of renewable energy are China's primary strategies of achieving carbon peak and carbon neutrality. • System dynamics model is applied to simulate scenarios on carbon emission. • The carbon emission models of the power supply and demand sides are constructed. • Three scenarios for achieving the dual-carbon target are proposed. • The electric energy substitution and CCUS are investigated in the model. [ABSTRACT FROM AUTHOR]

As the climate is warming up and climate disasters occur more frequently, China's carbon peak and carbon neutrality targets are gaining attention, with provinces starting to set carbon peak targets and constantly exploring low carbon economic development opportunities. However, the existing evaluation index system mainly focuses on low carbon cities and green cities, and there is no evaluation index system for carbon peak and carbon neutrality. This study adopts a combination of theoretical and empirical research and draws on domestic and international research results to construct the first index system for evaluating China's provincial carbon peak and carbon neutrality. The evaluation index system includes 18 indicators from three dimensions: climate ambition, low carbon status, and emissions trends. Using this index system, we calculated the carbon peak and carbon neutrality indices of 30 Chinese provinces. Further, the 30 provinces were classified into six categories, and corresponding policy recommendations for achieving the "Dual carbon" targets were put forward. The evaluation index system constructed in this paper can provide a reference for future carbon peak and carbon neutrality assessments. By disclosing the integrated index of each province, we hope to effectively curb the increasing local carbon emissions; avert inaction in areas with good natural endowments; and motivate the advancement of the latter, to boost the implementation of the "Dual carbon" targets coherently for the whole country. [Display omitted] • An integrated evaluation system on China's Provincial "Dual carbon" was proposed. • 30 provinces in mainland China were ranked based on the integrated index. • 6 groups were classified to show provincial differences on dual carbon performance. • Policy recommendations to fulfill China's climate commitment were put forward. [ABSTRACT FROM AUTHOR]

The year 2022 is the seventh year since the Paris Agreement was signed. In the context of the same goals of achieving carbon neutrality and transforming the energy structure, hydrogen has become one of the most appealing options for realizing a better vision. This paper reviews the status and challenges of hydrogen application paths in high carbon emission sectors, especially in the electricity and heating, transportation, and steel industries. The discussions focus on the potential contribution from the replacement of primary energy and the reduction in carbon emission by switching to a hydrogen economy. In the case of China in 2030, the application of hydrogen in a single sector is expected to save up to $27.8 billion in carbon tax. Additionally, the key technologies for hydrogen production, storage, and carbon footprint in the industry chain are discussed. In contrast, the cost-effective blue hydrogen is still the best choice. The hydrogen storage technologies suitable for large-scale and low energy consumption need to be broken through. The study of carbon footprint in the industry chain will promote the development of hydrogen in the designated sectors and provide insights for the policy decision on hydrogen development at the regional or industrial level. • The hydrogen application paths for decarbonization are thoroughly compared. • Hydrogen production paths are reviewed in aspects of cost and carbon intensity. • Hydrogen production from fossil energy with CCS is a positive choice. • The LCA method of the industry chain is conducive to the hydrogen promotion. • Specific suggestions for the sustainable development of hydrogen are proposed. [ABSTRACT FROM AUTHOR]

Smart cities have the potential to achieve the goal of carbon neutrality, but empirical evidence regarding the effect of smart city policies on carbon emissions is limited. In this novel study, we investigate the effect of China's smart city policy on household daily consumption and carbon emissions. The empirical analysis is based on a difference-in-differences regression, in which the dependent variable is the household indirect carbon emissions estimated based on the consumer lifestyle approach and a dataset of 201 Chinese cities between 2010 and 2018. The main findings are as follows. First, the smart city policy significantly reduces household indirect carbon emissions, and the reduction is greater when the policy pilot region includes the whole city rather than only certain subareas. Second, the mechanisms through which the smart city influences household indirect carbon emissions are mainly the reductions in transportation- and education-related emissions resulting from developments in smart technology. Third, the above effects last for years, and they are regionally heterogeneous and more significant in the cities of eastern China. The findings in this paper suggest that smart cities can potentially achieve city sustainability by promoting greener consumption behavior. [ABSTRACT FROM AUTHOR]

The coverage of Emission Trading Scheme (ETS) has been widely discussed. Based on the plans of the various stages of the National Development and Reform Commission in China, we explore the different impacts of different plans by applying recursive dynamic computable general equilibrium. What we found is different. Covering more industries, carbon prices will be lower so that the emission reduction motivation of each covering enterprises will be reduced. However, the resource attributes of carbon emission allowance will gradually emerge. In general, we found that the changes in the sectoral coverage will bring about the changes in the two effects in ETS market: carbon price effect and the allocation effect. The interaction of the two effects has led to a positive impact of both low-coverage and high-coverage on reducing emissions and improving the energy efficiency. This paper suggests that just covering three enterprises that are easy-to-MRV (monitoring, reporting, and verification) is enough for emissions reduction: cement, chemical and electric power, which can also achieve high emission reduction efficiency and can effectively reduce supervision cost. • A dynamic recursive CGE model is established in this paper. • There are two effects in ETS market: carbon price effect and the allocation effect. • Reduction efficiency is an inverted U-shaped curve to the changes of coverage. • Cement, chemical and electricity are encouraged to participate in ETS. [ABSTRACT FROM AUTHOR]

Motivated by reducing carbon emissions, carbon trading market have been opened to promote environmental protection. Accurate carbon trading volume and price forecasts have far-reaching implications for environmental and energy policy formulation. As the country with the most massive carbon emissions in the world, China's carbon price trends, carbon trading volume trends, and policy orientation are of great significance. As matters stand, there are few studies on carbon price and trading volume forecasts, and no research paper has covered carbon price and trading volume forecasts for all carbon trading markets in China. In order to provide a relatively complete reference for the carbon price and trading volume in China, this paper uses six machine learning models to predict the daily carbon price and trading volume of eight carbon markets in China, including Beijing, Shenzhen, Guangdong, Hubei, Shanghai, Fujian, Tianjin, Chongqing. The prediction models include extreme gradient boosting, random forest, kernel-based nonlinear extension of the Arps decline model optimized by grey wolf optimizer (GWO-KNEA), support vector machine optimized by particle swarm optimizer, support vector machine optimized by fruit fly optimizer and simulated annealing algorithm, and radial basis function neural network (RBFNN). Moreover, an advanced data denoising method, i.e., complete ensemble empirical mode decomposition with adaptive noise (CEEMDAN), is used in the models to smooth the raw data. Because the eight carbon trading markets have different carbon price and trading volume distribution characteristics in time series, by comparing the prediction results, more suitable models for the specific carbon market can be obtained. The prediction results show that CEEMDAN-GWO-KNEA and CEEMDAN-RBFNN are more competitive in predicting carbon prices and trading volume in China because of their best performance in many datasets. The average accuracy of CEEMDAN-RBFNN and CEMDAN-GWO-KNEA in carbon price prediction is 98.40% and 97.89%, respectively. The predictive stability of each model in different application scenarios is also discussed. The results show that high prediction accuracy does not mean better prediction stability, but CEEMDAN-RBFNN and CEMDAN-GWO-KNEA can still guarantee high stability in most datasets. [ABSTRACT FROM AUTHOR]

Nowadays, China's economy and energy structure are deeply adjusting to the direction of low-carbonization and non-carbonization with unprecedented efforts. This paper considered carbon emissions and energy endowments, adopted SBM-Undesirable model and spatial Durbin model to calculate the energy efficiency of 30 provinces and municipalities in China from 2015 to 2019 and analyze the direct effect, indirect effect and total effect on energy efficiency of 7 variables. Empirical results show that: Energy efficiency has spatial positive correlation and agglomeration characteristics; The main influencing factor of China's energy efficiency is energy consumption structure; Regions with strong energy endowment bear the environmental pollution cost of energy consumption areas in China; Environment Kuznets Curve (EKC) exists in China, but different provinces and municipalities are distributed in disparate stages; Research and development (R&D) investment only affects local energy efficiency, and has no spillover effect on surrounding areas in China; Foreign direct investment (FDI) has negative impacts on China's energy efficiency, and there is a phenomenon of pollution paradise. The valuable conclusions obtained in this study deepens the insights about the influencing factors of China's energy efficiency under the constraints of carbon emission and energy endowment. Energy efficiency has spatial positive correlation and agglomeration characteristics; The main influencing factor of China's energy efficiency is energy consumption structure; Regions with strong energy endowment bear the environmental pollution cost of energy consumption areas in China; Environment Kuznets Curve (EKC) exists in China, but different provinces and municipalities are distributed in disparate stages; Research and development (R&D) investment only affects local energy efficiency, and has no spillover effect on surrounding areas in China; Foreign direct investment (FDI) has negative impacts on China's energy efficiency, and there is a phenomenon of pollution paradise. [Display omitted] • Energy efficiency has spatial positive correlation and agglomeration characteristics. • Energy consumption structure mainly affects energy efficiency. • Environment Kuznets Curve exists in China. • "Pollution paradise hypothesis" exists in foreign direct investment. • Environmental pollution is transferred to surrounding provinces through resource trades. [ABSTRACT FROM AUTHOR]

The carbon emission trading scheme (ETS) is an important market-based tool for achieving carbon neutrality. The existing research on the policy effect of ETS focuses on emission reduction effect and economic effect respectively. In view of this, based on the connotations of green development, we embed fairness toward the environment into the green development system to construct a balanced green development index to measure two dimensions, namely, efficiency and fairness. Theoretically understand the synergistic development effect of economic growth and ecological environment quality produced by the implementation of ETS, and analyze the impact of carbon market on balanced green development. A multiperiod difference-in-differences (DID) model explores the impact of China's carbon ETS on the green equilibrium level by using Chinese provincial panel data for the period 2008–2018. First, the results demonstrate that China's balanced green development level is weakly coordinated overall and there is a global spatial agglomeration effect. Second, the carbon ETS has significantly improved the level of balanced green development which promotes the degree of coordination between green economic growth and environmental fairness, offering an effective path that includes efficiency and fairness for green development. Third, there are regional differences in the impact of the carbon ETS on green equilibrium levels. The effect on the western region of China was significantly higher than that of the central and eastern regions of China. Compared with the existing research, the study breaks the single research perspective. From the perspective of efficiency and fairness, we propose improvements in the construction of a national unified carbon emissions trading market to strengthen the balanced green development. This paper provides a theoretical basis and policy reference for deepening China's green and high-quality development under the "carbon peaking and carbon neutrality" goal. [Display omitted] • Evaluation system of Balanced Green Development Index is constructed. • The system was applied to balance green economic growth with environmental equity. • Emission trading scheme has significantly improved the level of balanced green development. • The promotion effect is more obvious in western China. [ABSTRACT FROM AUTHOR]

Carbon sequestration of blue carbon ecosystems worldwide is as high as 237.6 Tg C/a. China is one of the countries with the most resources of blue carbon, with carbon sequestration of 0.835 Tg C/a. To develop blue economy and facilitate the fulfillment of carbon neutrality, it is of great significance for China to build the blue carbon trading market (BCTM). This paper aimed to improve the participation probability of stakeholders to construct an effective BCTM through evolutionary game theory. First, we constructed a tripartite evolutionary game model including the governments, the suppliers of blue carbon (SBC) and the demanders of blue carbon (DBC), based on the corresponding cost and benefit in BCTM. To further reveal the factors affecting the cooperation of above parties, we analyzed the sensitivity of the stakeholders through five parameters, i.e., proportion of subsidies, unit carbon tax, blue carbon credits, unit price of blue carbon credits, and the cost of carbon emission reduction unit. To verify the game model, a case study of blue carbon credits of mangrove trading was performed. The main conclusions are as follows. In the initial stage of BCTM, the governments need to play a leading role in regulating and incentivizing motivation of the SBC and DBC. Subsidies and carbon taxes are conducive to promoting BCTM to develop into the middle stage. In the middle stage, price and quota of BC credits are two primary parameters to affect the evolutionary results of above three groups. Thus, it's necessary for the governments to adjust these parameters in time. When the trading scale and operation mode of BCTM approaching stable, the market will enter into the mature stage. Then, the governments can reduce subsidies to save fiscal expenditure and lessen the intervention, so as to gradually withdraw from the market. The above conclusions can provide a theoretical basis and reference for the construction of efficient BCTM and promote the integration of blue carbon into the carbon market in China. [Display omitted] [ABSTRACT FROM AUTHOR]

The implementation of the carbon trading system has a great impact on all aspects of the economy and society. Agriculture, which accounts for 34% of global carbon emissions, has also been hit hard as a high carbon emitting industry (Crippa M, 2021). This study uses agricultural green total factor productivity as an important indicator of agricultural green sustainable development, and analyzes the impact of China's carbon trading system on agricultural green total factor productivity, which can provide a reference for other countries that want to improve agricultural sustainable development and implement carbon trading. In this paper, the producer theory is used to build the basic model, and the differences-in-differences (DID) method is used to analyze the provincial data samples in China from 2000 to 2020. It is found that: the implementation of carbon trading pilot policy has a significant promotion effect on agricultural green total factor productivity; and after the implementation of carbon trading policy, with the advancement of time, under the constraint of reducing carbon quota, the promotion effect of agricultural green total factor productivity becomes stronger and stronger. Even in the regions without carbon trading pilot program, the policy spillover effect will also be obvious and promote the development of green total factor productivity of agriculture in this area. [ABSTRACT FROM AUTHOR]

In the social context of mitigating climate change and achieving carbon neutrality, the improvement of carbon emissions efficiency and the protection of biological carbon sequestration have emerged as hot topics recently due to their prospects in carbon dioxide emissions reductions. A large volume of studies has identified the spatial distribution characteristics and influencing factors of carbon emissions efficiency. The contributions of our study lied in constructing a system to measure net carbon sink efficiency. Secondly, this study discussed the carbon neutrality performance of Chinese cities from three different aspects of carbon dioxide emissions, carbon sequestration of vegetation and net carbon sink efficiency. Thirdly, this paper identified the influencing factors of net carbon sink efficiency, and examined the direct and indirect effect of different factors. For this purpose, we evaluated the net carbon sink efficiency of 285 cities in China from 2012 to 2017 using a slacks-based measure model, and explored its spatial distribution characteristics, then employed a spatial Durbin model to explore the influencing factors of net carbon sink efficiency. Our main findings indicate that the net carbon sink efficiency steadily increased during the study period, whereas their spatial characteristics were "high at both ends and low in the middle" from the south to the north. There is a significant spatial autocorrelation in the net carbon sink efficiency of Chinese cities. Several kinds of measures can be applied to promote net carbon sink efficiency, such as increasing the proportion of tertiary industry, promoting economic growth, attracting foreign direct investment, increasing road area, promoting technological progress and strengthening environmental regulation. However, the increase of urban population may decrease efficiency. Nevertheless, an obvious spatial spillover effect exists in the net carbon sink efficiency of Chinese cities. The results can provide policy recommendations for the government to formulate differentiated carbon neutralization policies. [Display omitted] • The carbon sequestration is considered to calculate net carbon sink efficiency (NCSE). • The NCSE is used to discuss the carbon neutral performance of Chinese cities. • Chinese NCSE steadily increased and showed significant spatial autocorrelation. • Spatial Durbin model was adopted to study the influencing factors of NCSE. [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]

Land use and cover change is the key factor affecting terrestrial carbon stocks and their dynamics not only in regional ecosystems but also in urbanized areas. Using the typical fast-growing city of Changzhou, China as a case study, this paper explored the relationships between terrestrial carbon stocks and land cover within an urbanized area. The main objectives were to assess variation in biomass and soil carbon stocks across terrestrial land covers with different intensities of urban development, and quantify spatial distribution and dynamic variation of terrestrial carbon stocks in response to urban land use and cover change. On the basis of accurate spatial datasets derived from a series of Landsat TM images during the years 1986 to 2011 and reliable estimates of urban biomass and soil carbon stocks using the InVEST model, our results showed that carbon stocks per unit area in terrestrial land covers decreased with increasing intensity of urban development. Urban land use and cover change and sealing of the soil surface created hotspots for losses in carbon stocks. Total carbon stocks in Changzhou decreased by about 30% during the past 25 years, representing a 1.5% average annual decrease. We suggested potential policy measures to mitigate negative effects of land use and cover change on carbon stocks in urbanized areas. [ABSTRACT FROM AUTHOR]

To achieve carbon neutrality by 2060, China must tackle CO 2 emission from its power sector which contributes to 40% (11.8 Gt in 2019) of its total CO 2 emission. Previous studies have shown that China has enough subsurface CO 2 storage capacity (3,145 Gt) to store 200–300 years of CO 2 emission nationwide or 600–700 years of CO 2 emission from the power sector. This paper evaluates the economic benefits of using carbon capture and storage (CCS) technology to decarbonize China's coal-fired power plants and conducts a techno-economic analysis of four scenarios to achieve carbon neutrality in China's power sector by 2050. A model of levelized cost of electricity (LCOE) for coal-fired power plants equipped with CCS (CP-CCS) is used for comparing the economic competitiveness of CP-CCS with those of nuclear (NP), hydro (HP), wind (WP) and solar photovoltaic (PV) power plants. Results show that the LCOE of CP-CCS with a CO 2 transportation distance of 100 km or less and coal price below 455 CNY/t (70.54 USD/t with the exchange rate set at 1 USD = 6.45 CNY) is less than those of NP, WP and solar PV especially for a high discount rate. The cost of coal and CO 2 transportation are the two greatest contributors to the LCOE of CP-CCS. In addition, LCOE is sensitive to operation time of the CP-CCS. Retrofitting an existing coal-fired power plant with CCS reduces the LCOE by 10–18% compared to a newly built CP-CCS. Furthermore, a scenario of gradual increase (average annual growth rate of 0.93%) in electricity generation by CP-CCS has a lower total cost than one where coal-fired power plants are aggressively replaced by wind and solar PV power plants. This is especially true if the coal price is low and CO 2 transportation distance is short. The result is savings of trillions of CNY in costs for the power sector. [ABSTRACT FROM AUTHOR]

Under the dual policy targets of carbon emission peaking (CEP) and industrial green transformation (IGT) in China, where a top-down policy implementation is usually adopted, a more integrative planning mode needs to be constructed for greening industrial development. This paper proposes a technical framework to tackle the weakness faced when integrating IGT-associated issues with CEP factors during the development of IGT options, with an application in the Hohhot–Baotou–Ordos–Yulin (HBOY) city cluster. A CEP-IGT model was built to portray the effects of seven selected indicators on industrial carbon emissions, and help develop six options by defining the transformation strengths of HBOY's energy-intensive industrial system. Particularly, the CEP times and volumes were employed as the criteria for evaluating the IGT options. We found that the regional CEP goal will not be accomplished by even 2035 under the business-as-usual scenario. To halt the emission growth trend will rely much on the structural factors of energy mix and industrial output, which were also determinants of the IGT performance. Option 3, representing a moderate level transformation, was the preferred IGT plan, reaching a peak volume of 255.27 MtCO 2 eq·a−1 in 2026. The preferred plan will result in the replacement of at least 14% of the coal used in thermal power by renewable energy, and an increase in industrial coal-use efficiency by 32.02%. Policy measures need to be implemented to cap the total industrial coal consumption to no more than 2494 Mt and sustain an industrial growth by developing lower-energy or carbon-intensive industries. By 2030, the intensity and volume of industrial carbon emissions will reach 1.89 tCO 2 eq·10,000 CNY−1 and 224.85 MtCO 2 eq·a−1, respectively. This CEP-IGT progress will benefit the goal of being carbon neutral. As such, we concluded that this new framework will aid the IGT planning process, not only improving our understanding of the relationships between carbon emission control and industrial updating levels, but also presenting an integrative path for China's city clusters to promote green, low-carbon industrial development. • A technical framework is raised to tackle the weakness of integrating the CEP factors into IGT planning. • The peaking time and volumes of carbon emissions are used as the criteria for determining the preferred plan. • Both industrial updating and carbon emission control rely on the structural factors. • The preferred Option 3 can achieve the peaking goal in 2026 with a moderate transformation strength. • The new framework presents an integrative path to promote the transformation to green, low-carbon industrial growth. [ABSTRACT FROM AUTHOR]

Emissions trading system (ETS) is a cost-effective way towards achieving the carbon neutrality goal. Based on the gaps in the research on carbon allowance allocation vis-à-vis the carbon neutrality target, this study examines how to allocate carbon allowances equitably and effectively among Chinese provinces. Different from the previous research that mainly considers responsibility, ability, and potential of equity dimensions, this paper proposes a composite indicator allocation approach based on the equity of history, demand, contribution, and guarantee, and it also employs the entropy method and expert survey method to obtain the indicator weight values in different scenarios. Results show that the carbon allowances of some provinces, such as the forest-rich province of Yunnan, vary significantly in five scenarios, but little differences are observed for some provinces, such as the high historical emissions province of Shanxi. More provinces achieve data envelopment analysis efficiency in the preferred scenario. Compared with the objective scenario, the required emission reduction in the preferred gross domestic product (GDP) scenario is 231 million tonnes less, and the emission reduction cost is 190 billion yuan less. It is suggested that the Chinese government should adopt the allocation scheme in preference for the GDP scenario. [ABSTRACT FROM AUTHOR]

The increasing energy and material consumption associated with global economic growth has resulted in the need for more severe efforts at mitigating global climate change. The iron and steel industry consumes 8% of energy and emits 7% of total CO 2 globally. China's iron and steel industry contributes to 15% of that country's total CO 2 emissions. Therefore, there is an urgent need to explore the possibility of net zero emissions in the iron and steel industry in China to meet China's goal of carbon neutrality before 2060. In the study presented in this paper, the MESSAGEix–China iron and steel model was developed by integrating the process-based technology of the sector into the IIASA's MESSAGEix framework to explore zero CO 2 emission pathways and their associated impacts on resources, energy, and water in China's iron and steel industry up to 2100. We found that there are multiple pathways to achieving zero CO 2 emissions in the Chinese iron and steel industry by the end of the 21st century. More specifically, in all the pathways developed in this study, CO 2 emissions decreased significantly between 2030 and 2060 due to the rapid application of 100% scrap-based Electric Arc Furnaces (EAFs) and hydrogen-based Direct Reduced Iron (DRI)-EAFs steel-making technologies. However, by 2060, there will still be 70–360 Mt of CO 2 emissions from China's iron and steel industry; consequently, carbon sink or negative emission technologies are required to offset this and achieve the country's carbon neutrality goal. Furthermore, technologies for achieving zero emissions differ widely in terms of their impacts on the consumption of materials and energy. Compared to the electric (ELE) scenarios, 25–40% of extra iron ore is consumed in the current and new national policy (NPS) scenarios and the DRI scenarios, but 25–220% of scrap is required. At the same time, 20–150% more energy will be saved in the ELE scenarios than in the NPS and DRI scenarios. Finally, we recommend that policy makers design a cross-cutting strategy to achieve zero CO 2 emissions and enhance efforts for material recycling and the provision of clean energy and water. • There are multiple pathways to achieving net zero emissions in China's iron and steel industry. • Steel outputs are essential for reducing CO 2 emissions and conserving materials, energy, and water. • Hydrogen-based DRI and 100% scrap-EAFs technologies are key to achieving zero emissions. • CO 2 mitigation measures have limited impacts on water consumption. [ABSTRACT FROM AUTHOR]

Inter-regional capital flow is one of the critical factors affecting economic growth and regional inequality. This paper examines the impact of inter-regional investment from publicly listed companies on green total factor productivity (GTFP) in 215 cities and their green innovation mechanism between 2008 and 2018 in China. To address the endogeneity of inter-regional investment and GTFP, we adopted the opening of high-speed rail as the instrumental variable in the form of regression discontinuity design (RDD) and two-stage least squares (2SLS) estimates. Validated by five robustness and validity tests, our empirical results show that inter-regional investment significantly enhanced the local GTFP in the host cities. Moreover, the mechanism analysis shows that green patents had a significant mediating effect between inter-regional investment and local GTFP in the host cities. Specifically, green invention patents have had full mediation effects while the green utility model was not part of the transmission mechanism. Further investigation revealed that the effects of inter-regional investment on local GTFP were completely channeled through three categories of green invention patent: alternative energy production, transportation, and energy conservation, while another three categories of patent (waste management, agriculture/forestry, administrative, regulatory or design aspects) had partial mediating effects between inter-regional investment and GTFP. The decarbonization of polluting transportation and energy sectors is therefore a cost effective way to facilitate China's goal of carbon neutrality by 2060. • Inter-regional capital flow based on investment data of Chinese listed companies. • Analysis of the impact of inter-regional investment on GTFP based on RDD and 2SLS estimation. • Analysis of the transmission mechanism of seven types of green patents based on WIPO in inter-regional investments on GTFP. [ABSTRACT FROM AUTHOR]

With China's aspiration of building a healthy nation and increasing its average life expectancy, the pharmaceutical industry will continue to grow in the coming years. Considering the high energy consumption and emissions in the pharmaceutical industry, striving for sustainability will be essential to achieving the 2030 target of peaking CO 2 emissions and becoming carbon neutral by 2060. This paper quantifies the reduction potential for CO 2 emissions in the pharmaceutical industry to provide policymakers with some references when decomposing the reduction task. By constructing a non-radical metafrontier Malmquist CO 2 performance index (NMMCPI), we find that the NMMCPI in the pharmaceutical industry is improved from 2005 to 2016. The three main factors influencing the changes are technical efficiency, technological advancement and technological leadership. These three factors have contributed to the growth of NMMCPI in the eastern Chinese pharmaceutical industry; however, the technological leadership effect is lacking in central and western China. There is a huge CO 2 emissions reduction potential in the pharmaceutical industry, which can be compared to UK and Brazilian emissions in 2016. In light of this, we recommend some policy implications to reduce the CO 2 emissions of the pharmaceutical industry in the future. [ABSTRACT FROM AUTHOR]

The implementation of market-based climate policies represented by the emission trading system (ETS) is an important path for countries to participate in global climate governance and achieve the goals of carbon emission peaking and carbon neutrality. Whether the covered firms can improve financial performance through bearing responsibility for cutting emissions, a "win-win" of environmental and economic achievement, is an important way to evaluate the effectiveness of ETS. Based on the Chinese A-share listed firms in industrial sector during the period of 2010–2017, this paper employs PSM-DID method to investigate the impact of China's pilot ETS on financial performance of the covered firms. The results show that the covered firm's financial performance is improved by the implementation of pilot ETS, which can increase firm's ROA by 0.01 unit. Specifically, the pilot ETS can significantly improve the financial performance of non-state-owned firms, without affecting state-owned firms. Similarly, the financial performance improvement is more significant for firms in non-energy industries. Furthermore, the pilot ETS can motivate the covered firms to gain financial profit through cutting carbon emission as a mediation path, and the mediation effect size of carbon emission intensity is 0.001. Besides, firm's innovation ability weakens this mediation path, and the well-developed institutions in pilot area, proxied by high degree of marketization, only weaken the first part of the path, namely, carbon emission reduction led by ETS. • ETS achieves a win-win of carbon emission reduction and financial performance improvement. • The improvements by ETS are heterogeneous in ownership and industry. • Firm's carbon emission intensity plays a mediation role. • Firms can gain more benefit under the ETS regulation if the market monopoly is strong. [ABSTRACT FROM AUTHOR]

Green development is a common goal pursued globally for carbon neutrality, and whether environmental regulatory system drives it in pollution-intensive industries (PIIs) is puzzled. Using provincial panel data of Chinese PIIs during 2005–2017, this paper applied entropy method to integrate existing environmental regulatory system into three types of environmental regulations, and then explored non-linear effects of them on green total factor productivity (GTFP). Several conclusions are generated. The annual growth rate of GTFP is 10.61% and it presents industrial differences. Technical change is the driving factor, while technical efficiency shows inhibiting effect. The effect of command-and-control environmental regulation on GTFP is a significant inverted U-shape curve, which is currently the primary driving role in green development, but it is too strict and increasingly less effective. Both market incentive and voluntary environmental regulations appear as positive U-shape curves, and their proper enhancement is breakthrough for future green development. Besides, market incentive environmental regulation is more effective in PIIs with relatively low pollution, while voluntary environmental regulation is sensitive to PIIs with relatively serious pollution. The Chinese government should allow environmental regulatory system more marketability and voluntariness, and production characteristics and pollution density of targeted industries should be considered. • The green development grows rapidly but shows technical inefficiency. • Command-and-control environmental regulation drives green development effectively. • Market incentive and voluntary environmental regulations can be enhanced properly. • Market incentive environmental regulation is sensitive to slight-polluted industries. • Voluntary environmental regulation works in heavy-polluted industries. [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]

Abstract: This paper measures the company''s awareness and acceptability of market-based instruments (MBIs) for energy saving, and identifies their relationships with pre-classified determinants. The data were collected from 121 respondents in Taicang, China, with almost all of them being small and medium-sized enterprises (SMEs). The surveyed companies indicate moderate awareness of MBIs at present. Market competition is confirmed to function as a driver for the companies to collect strategic information and thus enhance their policy awareness. The samples with higher education level of employees indicate higher awareness of MBIs. In contrast to the regulative polices, MBIs and voluntary approaches are more appreciated by the companies. The companies in the survey area prefer to make internal efforts in response to energy cost increases due to the implementation of carbon pricing policies and are reluctant to simply transfer the policy burden to their customers. Empirical evidences on the conditions for policy success from this study are meaningful for supporting further progress of industrial energy saving policies in China. [Copyright &y& Elsevier]

Promoting environmental regulation and the reduction of carbon emissions is of great significance for sustainable development. China plans to achieve the following two major goals by 2030: to experience the peak of carbon dioxide emissions, and to be at the forefront of innovative countries in the world. The realization of these goals not only depends on the environmental regulation policy regarding carbon emissions, but also on the development imbalance among Chinese provinces. The Porter hypothesis theory holds that environmental regulation can produce the Porter effect and promote enterprise innovation; but few studies focused on the causal relationship between environmental regulation and the regional Porter effect. Under this framework, this paper uses propensity score matching - difference in difference (PSM-DID) to construct a quasi-experiment on China's carbon emissions trading pilot policy. Dynamic panel data models are used to double test whether environmental regulation can stimulate the regional Porter effect. The empirical results show that: (1) Under the premise of multiple robustness tests (whether quasi-experimental or dynamic panel data models), no evidence was found in support that environmental regulation can stimulate the regional Porter effect. (2) The reason why the regional Porter effect does not been stimulated is that the pollution heaven effect, induced by the carbon emissions trading pilot policy, counteracts the Porter effect to a certain extent. (3) There is no non-linear relationship between environmental regulation and the regional Porter effect. (4) The analysis of spatial heterogeneity shows that environmental regulation cannot stimulate the Porter effect in the eastern, central, and western regions of China. This suggests that it is very important to establish appropriate provincial environmental regulation objectives and to conduct appropriate environmental regulation in combination with local resource endowments. This study provides quantitative evidence toward an in-depth understanding of the relationship between environmental regulation and the regional Porter effect as represented by the pilot policy of carbon emissions trading. A certain degree of reference is provided for the practice of environmental regulation in other developing countries. • Environmental regulation cannot stimulate the regional Porter effect. • The pollution heaven effect explains why regional Porter effect is not stimulated. • No nonlinearity exists between environmental regulation and regional Porter effect. • Environmental regulation cannot stimulate the Porter effect in all Chinese regions. • The government should appropriately strengthen environmental regulation. [ABSTRACT FROM AUTHOR]

The power sector accounted for almost 40% of China's carbon emissions in 2017 and is the first industry that is included in the national carbon emission trading system, so the current paper carries out a study on allocating carbon emission allowances for the power sector. Different from previous studies, this article assigns carbon emission allowances to 30 provinces according to the principles of equality, efficiency, and sustainability rather than just using the principles of equality and efficiency. We first apply the entropy method to initially distribute emission allowances to 30 provinces. Then, a zero-sum gains data envelopment analysis (ZSG-DEA) model is used to test the efficiency of quota allocation and redistribute the carbon quotas across 30 provinces continuously until the quotas are optimally distributed. The results show that in 2030, Guangxi, Hainan and Shandong have the most emission quotas, while Heilongjiang, Jilin and Qinghai have the least emission quotas. By comparing the quota share of each province in 2017 with 2030, it is found that Hainan, Guangxi and Qinghai located in western China have small emission reduction challenges, while there are great difficulties for provinces Jiangsu, Shanxi and Shandong situated in the central and eastern China to cut down the emissions. • Multiple criteria were used to allocate carbon quotas of China's electricity sector. • We used the entropy method to initially allocate emission quotas to 30 provinces. • A ZSG-DEA model was used to redistribute the carbon quotas across 30 provinces. • Provinces located in central and eastern China have more challenges in decarbonizing. [ABSTRACT FROM AUTHOR]

This paper proposed a model-based framework to optimize the energy-water-emissions nexus (EWEN) for regional electric power system (EPS) planning. The framework integrated the superiority of bi-level programming (BLP), two-stage stochastic programming (TSP), mix-integer programming (MIP), interval parameter programming (IPP) models and carbon emission trading (CET) mechanism, which could effectively deal with the planning problems in the EWEN optimization process. BLP helped decision makers make leader-follower choices when they have conflicting preferences. TSP with IPP could validly address the uncertain information expressed as interval values with unknown distribution. MIP was introduced as an efficacious tool to evaluate the capacity expansion potential in EPS. CET mechanism was applied to reinforce the CO 2 mitigation effect during the EWEN optimization process. Then the proposed framework was applied into a case study in Shanxi Province, a main thermal power base in China to optimize the EWEN. Results indicated that the power supply structure was inclined to show a low-carbon transition trend in the planning periods. Meanwhile, coupled with the strict water conservation policy, every 5% reduction in carbon emission density would lead to an average decreasing rate of 8% for SO 2 , 3% for NOx and 12% for PM. This study may help provide an effective way to deal with planning problems with conflicting and sequential goals under uncertainty and make better tradeoff strategies in EWEN optimization in EPS. • Propose a stochastic leader-follower framework for energy-water-emission nexus. • Control uncertainty by the combination of TSP and with IPP. • Interactions of CO 2 emissions and air pollution emissions are revealed. • Introduce CET mechanism to help improve the CO 2 mitigation effect. • The empirical results demonstrate the excellent performance of the framework. [ABSTRACT FROM AUTHOR]

China launched seven emissions trading scheme (ETS) pilots in 2011, and a national ETS, at the end of 2017 in an attempt to reduce its greenhouse gas emissions (GHGs) and drive its extensive energy transition in a cost-effective way. The Hubei province pilot ETS has operated since 2014, and an analysis of its effectiveness can provide lessons for the nascent national system. This paper disaggregates Hubei's industrial carbon dioxide (CO 2) emissions from 2005 to 2018 into economic scale, economic structure, energy efficiency, and energy structure effects using the logarithmic mean Divisia index (LMDI). Difference-in-difference (DID) models then assess the implementation effectiveness of this ETS, and its impact on the main influencing factors of the LMDI. Ten cities each in the Hubei and Hunan provinces are selected as treatment and control groups, respectively, in the DID models. Results show that the change in industrial CO 2 emissions is mainly due to the economic scale and energy efficiency effects. After the ETS implementation, the energy structure effect has a limited impact on emissions, while the economic structure effect makes a negligible contribution. Moreover, the implementation of the ETS has had little demonstrable impact on industrial CO 2 emissions, gross domestic product (GDP), energy consumption intensity, and CO 2 emission intensity. This lacking of impact is caused by the GHG monitoring capacity deficits of the local Development and Reform Commission, and irrational quota allocations. Effective supervision and quota allocation should be developed to increase the impacts of the ETS. [ABSTRACT FROM AUTHOR]

Facing the huge pressure of emission reduction, China officially launched a national carbon emission trading system at the end of 2017. The power industry is an important breakthrough in the construction of China's carbon emission trading system. To push the optimization of the power structure through carbon constraint is the necessary path to promote the transformation of the power industry from fossil energy to clean and low-carbon energy. From the perspective of power consumption, this paper constructs the linkage mechanism model of China's carbon emission trading market, energy market and capital market and applies the DCC-MVGARCH model to analyze the dynamic linkage mechanism of the three markets. The results show that the price fluctuation of the yield series of products in each market has clustering characteristics, and the dynamic correlation has significant time-varying characteristics and persistent characteristics. The dynamic conditional correlation between the carbon emission trading market and the oil market and between the carbon emission trading market and the natural gas market are basically consistent. The dynamic correlation coefficient between the carbon emission trading market and the capital market is negative, which is related to the unreasonable quota setting in China's carbon emission market. On the basis of empirical analysis, the optimal balance weight and the optimal hedging ratio of each asset are determined. [ABSTRACT FROM AUTHOR]

This paper attempts to explore the realizability of China's "13th Five-Year plan" objective for energy-saving and emission-reducing (ESER). Based on the internal logic relationship between new energy, carbon emissions, economic growth and carbon trading (NCEC), the 4D NCEC (acronyms) system is constructed with the aid of nonlinear dynamics theory. And then, the NCEC system for China is given after parameter acquisition. Taking energy intensity and the proportion of new energy as the measure indexes, a scenario study is carried out. The scenario analysis results show that, the target of decreasing energy intensity can be easily met with various constraints. While the objective of increasing the proportion of new energy is hard to achieve, and this objective depends on some thresholds. Only the certain speed of new energy can guarantee the increasing of new energy proportion, and the certain speed was found. The implementation of carbon trading can promote the process of ESER and realize the objectives during the "13th Five-Year plan". However, it's not the faster carbon trading speed, the better. The appropriate speed interval is narrow. The driving function of carbon trading can help new energy to work better in ESER system. [ABSTRACT FROM AUTHOR]

China is the world's largest developing country and a carbon dioxide emitter. A functional carbon market can effectively reduce carbon emissions. This paper uses the Markov chain Monte Carlo-stochastic volatility model and the wavelet multi-resolution model to analyze the volatility of price returns and the dynamic characteristics of price fluctuations in the carbon pilot markets in Hubei, Shanghai, and Shenzhen. The price movements in these markets are compared to the emissions trading system of the European Union (EU-ETS). The results show that there is a volatility clustering in the price of carbon trading in Hubei, Shanghai, Shenzhen and the EU-ETS. China's carbon pilot markets have a deficiency in terms of volatility stability, as does the EU-ETS. From a long-term perspective, China's carbon market lacks a detailed development plan, which is vital because the construction of the market system is not yet optimal. From a short-term view, China's carbon market is not active and the participants' attitude toward risk is extremely sensitive. • MCMC-SV and wavelet multi-resolution model applied to carbon price volatility. • Three major Chinese markets are compared to the EU-ETS. • All markets evidence volatility clustering. • China's carbon market lacks a detailed development plan for the long term. • Short-term, China's carbon market must become more active and offer more products. [ABSTRACT FROM AUTHOR]

Energy Consumption monitoring technology (ECMT) can effectively reduce the energy consumption of public buildings (PB) in the operational phase, but it is not used widely in China. The main reason for this is that the existing policies have a poor effect on diffusing ECMT; thus, studying the impact of different policy instruments on ECMT in PB is of great significance to the widespread use of ECMT and its role in decreasing the energy consumption of PB. This paper systematically reviews the policy related to ECMT in China from 1990 to 2018, and, on this basis, divides the promotion stage of China's ECMT into three stages: the concept stage, the demonstration stage and the gradual promotion stage. A questionnaire survey and semi-structured interview of 313 stakeholders (ECMT suppliers, government officials, and scholars) was used to study the influence of command-and-control instruments (CAC), economic incentive instruments (EI) and exhortatory instruments (EXI) on the diffusion of ECMT in PB. The empirical results show that CAC and EXI contribute to the diffusion of ECMT in PB, whereas EI do not. In more detail, laws and regulations, energy consumption quotes, education and information programs, and energy audits and disclosure also have a significant impact on diffusing ECMT, whereas technical standards, subsidies for adopting ECMT, energy performance contracting, and carbon trading do not. Finally, relevant policies and suggestions are put forward based on the results. [ABSTRACT FROM AUTHOR]

As the global climate and environmental issues become increasingly serious, low-carbon development has become a consensus among countries to seek new economic growth pathway. As an important emitter of carbon dioxide, China has put forward "Thirteenth Five-Year Plan" (TFYP) outline that carbon dioxide emissions per unit of gross domestic product (GDP) will be 18% lower in 2020 than that in 2015. To measure the policy effects on CO 2 emission reduction and abatement costs, the directional distance function model is introduced in this paper, and the sensitivity analysis is conducted to verify the rationality of our index formulation. The results show the areas with the highest carbon emission control target level have significantly higher marginal abatement costs than that of other areas. In the short term, the reduction targets policy effect on decreasing carbon abatement cost is not significant. Through sensitivity analysis, we further discovered that the carbon emission reduction cost is less sensitive to the carbon emission reduction target, and the impact in the short term is smaller. However, as time goes by, the impact increases. We suggest that the government should guide interregional enterprises to cooperate and play a synergistic role. Implementing the multilevel emission reduction targets and expanding the scope of trading in the national carbon trading market are especially important to optimize the allocation. • China's average carbon marginal abatement cost will be 0.23 million yuan/ton in 2020 under the current scenario. • Setting low emission reduction targets can not significantly reduce carbon marginal costs in the short term. • Improving the production efficiency of cities with low and medium emission levels is important for China's sustainable development. [ABSTRACT FROM AUTHOR]

China launched its carbon emissions trading market and established a national carbon emissions trading system in 2017, both of which call for accurate carbon audits to reflect carbon emissions of enterprises. Drawing on the carbon audit theory and the driving force-state-response (DSR) model, this paper aims to construct a carbon audit evaluation index system and to analyse the application of the system in the iron and steel enterprises in China. Data was collected from the Statistical Yearbook and the Sustainable Development Report and Financial Report of the iron and steel enterprises in China from 2011 to 2015. Research results show that establishing a carbon audit evaluation index system plays an essential role in implementing carbon audits; the system also improves the corporate carbon auditing system and evaluation mechanism, optimises the enterprise's energy saving and emission reduction process, and makes a positive contribution to a low-carbon economy. The research also identifies several issues in relation to carbon audits in the iron and steel enterprises, including insufficient infrastructure and the shortage of talents for carbon audits, and the lack of innovation in clean production technology and capital investment. Graphic of the hierarchical structure model. Image 1016 [ABSTRACT FROM AUTHOR]

As an economic means to cope with climate change, carbon trading has become an important measure to reduce carbon emissions in China. It has been over seven years since the initiation of seven pilot carbon markets, but has the implementation achieved the goal of controlling carbon emissions in the region? Are the effects really resulted from the carbon market other than other energy-saving and emission reduction policies? Based on the provincial panel data of China from 2005 to 2016 this paper conducts an empirical study on the emission reduction effects of pilot projects using the Difference-in-differences model (DID). The results show that: (1) The implementation of carbon markets in Beijing, Shanghai and Hubei exhibited a significant inhibitory effect on local carbon emissions, but a promoting effect in Guangdong, and no significant effect was found in Tianjin; (2) In terms of time lag effect, no significant inhibiting effect on the local carbon emissions is found during the first year of opening of Shanghai carbon market but the effect grew significantly from 2015 to 2016; while for Hubei and Beijing, significant effect was shown from the first year of running. Being an experimental program to see whether the carbon trading policy would work in China or not and if it does, under what conditions and settings the policy becomes effective, the 7 pilot markets provide important experiences and lessons to the upcoming nationwide market in China. Based on the empirical result that the carbon trading system in Beijing, Shanghai and Hubei effectively reduced carbon emissions, it is suggested that the national carbon market should actively learn from the experiences of these three pilot markets particularly. [ABSTRACT FROM AUTHOR]