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China's ambitious endeavor to curtail carbon emissions has led to heightened governmental attention on addressing the issue of excessive carbon emissions. As governmental tolerance for such emissions diminishes, governments promote and support more proactive emission reduction methods of green innovation in enterprises. This study analyzes panel data from Chinese-listed businesses to explore the correlation between regional carbon emission pressure and green innovation. Our findings indicate a positive relationship between carbon emission pressure and enterprises' engagement in green innovation initiatives. Governmentenvironmental attention, punitive regulations, and incentive subsidies are the main channels. Market policies, including carbon emission trading and green credit policies, potentially impact the interplay between carbon emission pressure and green innovation. Moreover, our heterogeneity analysis underscores that enterprises facing looser financing constraints, exhibiting more social responsibility initiatives, and operating within polluting industries tend to experience a more pronounced positive impact than their counterparts in other sectors. • Regional carbon emission pressure has significantly promoted enterprises' green innovation. • Government awareness, punitive regulations, and incentive subsidies are the main channels. • The 2015 Paris Agreement in 21st United Nations Climate Change Conference contributes to the promotion of green innovation of enterprises. • The carbon emission trading and green credit policies enhance the promotion of green innovation. [ABSTRACT FROM AUTHOR]

Abstract Few studies of policy mix concerning renewable portfolio standards (RPS) and emissions trading (ET) investigate a scenario in which the retailer is required to comply with quota obligations. This paper focuses on the impact of RPS, with an ET counterpart, on the electricity market when RPS are imposed on the state grid companies. The evolution game is employed to model transactions between multiple buyers and multiple sellers. The results show that ET enhances the price competitiveness of electricity from renewable energy source (RES-E) and reduces power generating companies' profit at the same time. On the other hand, when the RPS level goes up, the state grid companies gain a windfall created by the difference between the lower wholesale price of thermal power and the unchanging retail price. The windfall will be used to pay for the increasing cost of supporting RES-E. Thus, the thermal power generating companies are confronted with the double cost when introducing ET and RPS, but the state grid companies do not pay for the cost of supporting RES-E. This paper appeals to the Chinese government for the assessment of policy effects from a policy mix perspective. Highlights • The evolution game is employed to model transactions between multiple sellers and multiple buyers. • The quota obligation imposed on the state grid company is studied. • Emissions trading hurts the renewable power generating companies' profit and enhances the price competitiveness of RES-E. • The state grid companies do not pay for the cost of supporting RES-E. • The thermal power generating companies bear both the cost of emissions trading and the cost of supporting RES-E. [ABSTRACT FROM AUTHOR]

Abstract The current global momentum for carbon pricing has lately produced innovative hybrids: carbon taxes allowing the use of offsets from emission sources not targeted by the carbon tax for compliance with the tax load. This study aims at filling the knowledge gap in existing literature by exploring the potential impacts of domestic offset components in carbon taxes on mitigation of national emissions, including the country examples Colombia, Mexico and South Africa. The findings indicate that the use of offsets in carbon taxes may significantly influence mitigation of national emissions both positively and negatively. On the one hand, this model may result in real emission reductions from offset projects and positive spillover effects of efforts to reduce emissions from emission sources covered by the carbon tax to other emission sources. Furthermore, the offsetting component can be used as a bargaining chip in political negotiations facilitating the introduction of mitigation policies and measures and/or strengthening their ambition level. On the other hand, it also entails serious risks: Offsetting could compromise the environmental integrity of the carbon tax through low-quality offsets. Furthermore, offsets reduce incentives to curb emissions in the emission sources covered by the carbon tax, potentially leading to carbon lock-in effects. Moreover, an offsetting component could provoke opposition to further climate policies and measures for emission sources generating offsets, as replacing the offsetting component with mandatory emission reduction policies would eliminate revenues from offset credits. General opposition of stakeholder groups to the introduction of offsets may even hinder the introduction of carbon pricing instruments and offsetting altogether. The study identifies options that could be employed to increase potential positive effects of introducing an offset component to a carbon tax and mitigate related risks, pointing to the country examples included, where appropriate. Highlights • Allowing the use of offsets for compliance with a carbon tax may significantly influence national emissions mitigation. • The use of offsets may seriously affect the amount of revenues from the carbon tax. • Meaningful and comprehensive stakeholder involvement is key for increasing support and reducing opposition to offsetting. • Opportunities and risks of design options should be considered carefully to reach a balance between different policy goals. • Offset regulations have to ensure environmental integrity to not undermine the carbon tax's impact on emissions mitigation. [ABSTRACT FROM AUTHOR]

Highlights • We provide an analysis of the local policy innovations for constructing pilot emission trading schemes in China. • We argue that these experimental measures played an important role to establish effective trading facilities and regulatory frameworks. • We investigate the role of these local policy innovations to meet the challenges of applying market instrument in China's unique political, economic, and industrial contexts. • We discussed how these local policy innovations can be learned for the construction of nationwide carbon market. Abstract Harnessing market instruments of climate governance, such as emission trading schemes (ETS) into an authoritarian and highly fragmented governance system like China can be challenging. It requires tremendous efforts from local states for policy experiments and innovations. This paper examines these local adaptive measures to develop pilot ETS around China. The key finding is that these local policy innovations have played an important role to kick off carbon trading activities effectively, by addressing a number of challenges such as highly imbalanced economic and political contexts, very limited emissions data and technological capacity, and low participants' awareness of ETS. The implications of such policy innovations to the construction of a nationwide ETS system are also discussed. Some of local policy innovations can be legitimised and adopted into the design of national carbon market, while others are more likely appreciated only at initial stage of market development at local level. [ABSTRACT FROM AUTHOR]

Highlights • The impact of the ETS on social equity is assessed. • A dynamic CGE model with disaggregated labor and household sectors is developed. • Employment in China's coal industry will decline by 75% in 2030 in the ETS scenario. • ETS revenue will peak at 2278 billion yuan in 2042 in our scenario. • ETS revenue redistribution can reduce the Gini coefficient by 10% compared to BAU. Abstract Carbon dioxide emissions trading systems (ETS) are an important market-based mitigation strategy and have been applied in many regions. This study evaluates the potential for a national ETS in China. Using a dynamic computable general equilibrium (CGE) model with detailed representations of economic activity, emissions, and income distribution, we examine alternative mitigation policies from now until 2050. Based on statistical and survey data, we disaggregate the labor and household sectors and simulate the impacts of ETS policies on the incomes of different household groups. We find that ETS has the potential to reconcile China's goals for sustained, inclusive, and low-carbon economic growth. Results show some key findings. First, the number of unemployed people in energy-intensive industries such as coal and construction will continue to increase; by 2050, employment in the coal industry will decline by 75%. Second, if the scope of the carbon market extends to all industries in China, carbon market revenues will continue to increase, reaching a maximum of 2278 billion yuan ($336 billion) in 2042 to become the world's largest carbon market. Third, the distribution of benefits from the national ETS can help achieve greater social equity. By comparing different distribution policies, we find that the combination of targeted subsidies for unemployed coal workers and direct household subsidies based on proportional per capita will reduce the social income gap to the greatest extent compared with other scenarios. By 2050, this distribution policy will reduce the Gini coefficient in China by 10% compared to the Business as Usual (BAU) scenario. [ABSTRACT FROM AUTHOR]

Abstract Excessive price fluctuations would affect the effectiveness of Emission Trading Scheme (ETS) and low-carbon investment. Therefore, the drivers of carbon prices need to be disentangled to analyze the price formation process, which is important for both policy makers and investors. By applying the Ensemble Empirical Mode Decomposition (EEMD) method, we decompose the historical carbon price data of the five ETS pilots in China into five groups of the independent Intrinsic Mode Function (IMF) sequences and the residue, respectively. Then, the IMFs and the residue in each pilot are reconstructed into a high frequency component, a low frequency component and a trend component, thus disentangling the effects of short-term market fluctuations, significant events, and the long-term trend. The main findings are as follows. First, the IMF with a period around one year is the most influential factor, which reflects that pilots are characterized by the yearly cycle. Second, significant events have greater impacts than short-term market fluctuations, and are the dominant driver in Shanghai and Beijing pilots. Third, the long-term trend plays a decisive role in Shenzhen, Guangdong and Hubei pilots. The price stabilization mechanism is critical to avoid a severe imbalance between demand and supply in the long run. Highlights • The drivers of carbon prices in China's ETS pilots are disentangled. • The IMF with a period around one year is the most influential factor. • Significant events have greater impacts than short-term market fluctuations. • Long-term trend plays a decisive role in Shenzhen, Guangdong and Hubei pilots. [ABSTRACT FROM AUTHOR]

Highlights • Real-world emission parameters for estimating MSW open burning. • A country specific and global EFs for estimating GHGs and other harmful pollutants. • MSW open burning practices more prevalent in sub-urban area than municipality core. • Lower waste collection efficiency reveals higher fraction of population burning MSW. Abstract Open burning of municipal solid waste (MSW) is a poorly-characterized and frequently-underestimated source of air pollution in developing countries. This paper estimates the quantity of MSW that was burned in five erstwhile municipalities of the Kathmandu valley, Nepal. A household survey, a transect walk survey, an experiment to measure the fraction of waste that is combustible, a survey on fraction of population burning waste outside their houses, and a survey of the fraction of MSW burned at dump sites were performed in this study, whereas burning/oxidation efficiency, municipal populations, MSW generation rates, and emission factors were derived from the literature. The total mass of MSW burned during 2016 is estimated to be 7400 tons (i.e., 20 tons/day), which was of 3% of the total MSW generated in the valley municipalities that year. This exceeds Government estimates by a factor of three. Multiplying the burned MSW mass by emission factors, the air pollutant emissions are estimated as PM 2.5 55 tons (OC 42 tons and EC 1.4 tons), PM 10 60 tons, BC 25 tons, CO 2 11,900 tons, CH 4 30 tons, SO 2 5.0 tons, NO x 19.2 tons, CO 630 tons, NMVOC 112 tons, and NH 3 5.7 tons per year. Open burning of MSW can trigger health impacts such as acute and chronic respiratory disease, heart diseases, and allergic hypersensitivity, in addition to impacts on local climate. Improved waste-segregation practices at the source and waste-collection systems throughout the valley are needed to mitigate this pollution source and its effects. [ABSTRACT FROM AUTHOR]

Considerations to decarbonize maritime shipping by implementing the Emissions Trading System (ETS) are underway at the International Maritime Organization (IMO). This study seeks to investigate the impact of ETS on short-term fleet deployment decisions of liner shipping companies. Considering pragmatic scenarios of demand uncertainty and transshipment, we extend state-of-the-art maritime operational planning under climate policies and propose a fleet planning model accounting for carbon emissions to evaluate the decision-making nuances of a liner company. Numerical experiments are conducted to analyze ETS implementations with varying policy design parameters for their efficacy in mitigating emissions and potential impact on stakeholders. The findings indicate that, for liner shipping which is cross-regional by nature, regional ETS implementations are inadequate due to carbon leakage; the efficacy of open ETS policies is limited, particularly when carbon prices are low; strict carbon purchase caps integrated with robust carbon price-setting mechanisms are critical to designing an effective ETS. • Regional Emissions Trading Systems are limited in their decarbonizing efficacy. • Low carbon prices complemented with strict carbon caps induce reduction in CO 2. • Preference for strict carbon caps or high carbon prices depend on policy timeline. • Transition to LNG is not ideal at current free carbon allowance allocation levels. • Incentive schemes must be devised to encourage transition to intermediate fuels. [ABSTRACT FROM AUTHOR]

To better establish a unified carbon market in China, this study evaluates the effect of current carbon trading policy and further investigates the relationship between such policy that is published during the second phase of Shanghai Environment and Energy Exchange (SEEE) and Shanghai Emission Allowance (SHEA) price. We aim to analyze whether these policies can improve the operation efficiency of current carbon market. By the Mean Reversion Test, Cox-Ingersoll-Ross (CIR) Model, and Event Study Method, we first analyze the potential price discovery function of SHEA products, thereby describing the transmission channel of current policy to SHEA price. Then we examine the effect of carbon policies published in different periods on their corresponding SHEA price. By the Auto-correlation Test and CIR simulation, we find that 3/4 of all auto-correlation values are less than 0 after Apr. 2017, and the minimum cumulative error is 31.3792 under the supply and demand channel. These findings imply that SHEA price has the discovery function at the middle and end of trading period, and the current policy affects SHEA price through its effect on the fundamentals of supply and demand. Further, more than 60% of all r-values (r-value that reflects the response of price to policy) are less than 1, which implies that the published policy will improves future SHEA price. Accordingly, we argue that SEEE belongs to a policy-oriented market, and the change of carbon price is closely related to emission allocation policies. In this case, China's government should further push forward the smooth operation of current carbon market by the aid of incentive policy in the coming period. [ABSTRACT FROM AUTHOR]

Recently, a new feedback control policy, named the Environmental Hedging Point Policy, to control the inventory and production was introduced. In this policy, inventory, backlog, and emission costs were taken into account. Employing low-emitting technology, this study aimed at developing this policy in order to integrate three objectives of costs, emissions, and customers’ satisfaction. Two prominent environmental control rules, namely command-and-control and cap-and-trade were examined by applying the proposed policy. To solve the problem, a new simulation-based optimization method combining OptQuest, experimental design, variance analysis, and response surface methodology, was conducted. This method improved the procedure of finding the second-order responses. Compromise solutions of a multiple-response problem were calculated thanks to the desirability function approach. Accordingly, the Pareto optimal surface was generated by changes in the weights or shape factors. The effectiveness of introduced policy was examined by sensitivity analysis. Thereupon, the shadow prices for both low-emitting technology and emission penalty were obtained. The results showed that considering shadow prices imposed by the regulatory authorities, the cap-and-trade rule was more effective in comparison with other rules. [ABSTRACT FROM AUTHOR]

The European-Union Emissions Trading System (EU-ETS) is a cap and trade scheme that requires the industries participating in the program to obtain allowances to cover their carbon emissions. Energy Intensive Industries claim that this system puts their European plants at an economics disadvantage compared to facilities located outside the EU. As a direct consequence, industries may relocate their production activities in unregulated countries, leading to the so-called carbon leakage effect. In order to curb this effect, several policies have been devised, including grandfathering of CO 2 allowances and border tax adjustment. This paper investigates the impact of these two policies on the cement sector, with a particular focus on the Italian market, particularly prone to carbon leakage. The analysis is based on an oligopolistic partial equilibrium model with a detailed technological representation of the market. The model is a Generalized Nash Equilibrium Problem that accounts for the interactions of cement companies. Simulations show that neither the grandfathering nor the border tax adjustment fully solve the carbon leakage problem because cement companies modify their cement and clinker trade strategies according to the measure applied in order to avoid or reduce their carbon costs. [ABSTRACT FROM AUTHOR]

Market-based environmental policy can strongly affect both technological advancement and the diffusion of less pollution-intensive or less cost-intensive abatement technologies and facilities. This study applied an agent-based model to examine the effects of an emissions trading system on the NOx technology adoption of power plants in China. The results indicate that an emissions trading system influences obsolete technologies with lower removal levels, but it does not promote the adoption of the most advanced technology. Most power plants will adopt the best available technology under an emissions trading program. In addition, national emissions trading encourages power plants to adopt technologies with relatively higher removal rates compared with separate regional emissions trading systems, but a national program decreases the adoption of most advanced technology. Further, initial allowance allocations based on concentration standards rather than on generation performance standards may promote power plants to adopt the newest technologies more quickly. [ABSTRACT FROM AUTHOR]

Thermal acceptability (TA) and perceived air quality acceptability (PAQA) are typically analyzed in climate chambers or cross-sectional field studies. Individual factors, such as expectations and perceived environment history, may influence the acceptability response. Longitudinal studies with multi-day design are absent in the literature. Fifteen Singaporean subjects participated in a 7-day longitudinal experiment in which they carried a portable sensor that continuously recorded personal air temperature, relative humidity and carbon dioxide concentration at 1-min intervals. Instantaneous TA and PAQA were regularly sampled by survey for each subject. High acceptability was found at home, restaurants and workplaces, whereas low acceptability was found for outdoor and transport environments. The participants, from Singapore's modern tropical environment spent an average of 96% of their time indoors. Weak associations were reported between acceptabilities and measured physical parameters taken independently. Clustering data by location, subject's sleeping ventilation habit, air-conditioning operation status and the changes in physical parameters over a designated time period enhanced the understanding of the acceptability results. In general, acceptability was lower for those who slept in air-conditioned environments than for those who slept without air-conditioning. The carbon dioxide mixing ratio was critical for PAQA predictions but not for TA. The Gaussian process (GP) had a better predictive power than a multiple linear regression approach. Using GP, we found that a general predictive model had comparable simulation performance as for individual predictive models. The longitudinal experiment has demonstrated effectiveness for TA and PAQA analysis, which could be beneficial to future studies in personal comfort prediction. [ABSTRACT FROM AUTHOR]

Constrained by the dual mission of supporting industrial growth and reducing emissions, China׳s traditional, emission reduction-oriented environmental policies unavoidably face a dilemma. This study adopts the GML index to calculate China׳s industrial productivity by considering environmental factors. In addition, based on the assumption of industry heterogeneity, the author examines the non-linear relationship between China׳s environmental regulation and environmental productivity and calculated the optimal regulation environment for industries. According to this study, when impact of undesirable outputs (pollutant emissions) is considered, environmental regulation and environmental productivity are positively correlated, which to some degree validates the Porter Hypothesis. At present, environmental regulation has significant positive effects on clean production industries but shows a lag effect on pollution-intensive industries. The degree of environmental regulation and environmental productivity show an “inverted U”-shaped relation and display three thresholds. It should be noted, however, that the relationship between regulation and productivity may vary across industries. These findings have clear policy implications: rather than continually increasing the level of environmental regulation, the government should establish standards for individual industries that emphasize flexibility. [ABSTRACT FROM AUTHOR]

• Carbon trading enlightens market-based solutions to environmental governance. • Solid waste permits as tradable commodities lead to cleaner construction industry. • A four-step roadmap is given to build a construction waste cap-and-trade market. • Price volatility and fly-tipping are identified as potential risks. Of all the solid waste produced by the world's rapidly urbanising regions, a significant proportion flows from construction activities. While construction waste permit trading could incentivise both reduction and recycling, there are no known examples of such trading. Meanwhile, trading carbon permits has been successfully mainstreamed. Drawing on Coase Theorem, our research specifies a cap-and-trade construction waste trading scheme. We investigate various emissions trading schemes to propose and elaborate a preparation-implementation-evolution-review roadmap. In the first step, we decide a waste cap based on social optimum and a benchmarking method to allocate permits. Second, we establish a market that minimises transaction costs. Third, we set up a reward scheme to subsidise low-waste behaviours so that, in the fourth step, the cap can be decreased through regular reviews. Two major risks are identified, namely price volatility and fly-tipping, in response to which we propose a market stability reserve and deposit-refund system, respectively. [ABSTRACT FROM AUTHOR]

There is a broad consensus on the contribution of the so-called eco-innovations to the sustainability transition of economic activity and on the power of policy instruments to redirect innovation towards solving environmental challenges over time. However, despite remarkable academic efforts in this direction, there is a shortage of studies empirically analysing the link between environmental policy and innovation activities. Using firm-level data gathered from the Community Innovation Surveys of two specific years, 2008 and 2014, from eleven European countries, we apply a difference-in-difference approach to provide a clear-cut test of the effects of Phase III of the EU's Emissions Trading System on low-carbon innovations of energy-intensive firms. Our results suggest that environmental policy may affect firms' environmental performance by improving eco-innovating efforts. In fact, the new environmental policy not only induced an adaptive response , in which firms adjust their level of emissions to this new cost scheme, it also induced a creative response , leading companies to move outside of the range of their existing practices. [ABSTRACT FROM AUTHOR]

Carbon tax policy has become an effective way of governing carbon emissions in many countries. So carbon emissions incur additional costs to the manufacturer and thus have an impact on profits. The selection of cutting parameters affects machining efficiency and carbon emissions in the manufacturing process. And it further affects carbon emission costs and product machining costs. The aim of the work is to develop a numerical model and method to optimize cutting parameters and minimize carbon emission costs in response of carbon tax policy. First, the relationship among energy consuming, working hour and cutting parameters in a cutting process is analyzed. Then the multi-objective optimization model of cutting parameters for high-efficiency and low-carbon manufacturing is presented, which takes cutting speed and feed rate as optimization variables, carbon emission and working hour as optimization objectives. Non-dominated sorting genetic algorithm NSGA-II is adopted to obtain the Pareto solution set of cutting parameters. An approach based on carbon emission costs is presented to evaluate and select Pareto optimal solutions. Finally, a case is given to illustrate the proposed model and method. Based on the case analysis, the influences of different depths of cut, common materials of cutting tools and workpiece on optimal cutting parameters and carbon emissions are explored. The analysis results show the influence of cutting speed on carbon emissions and processing time is greater than that of feed rate. Given depth of cut, small feed rate and big cutting speed can achieve low-carbon machining. Carbon emissions and processing time are smaller for the carbide tool than high-speed steel tool in turning of 45 carbon steel. The proposed model and method could support manufacturing enterprises selecting optimal cutting parameters to decrease carbon emission costs, and governments making appreciate carbon tax policy to control carbon emissions. [ABSTRACT FROM AUTHOR]

The paper offers sector-based qualitative evidence concerning the climate and energy policy effects on eco innovations in the EU. Through interviews with industry associations of Emission Trading Scheme (ETS) sectors, it analyses the extent to which past innovation adoption dynamics were influenced by policy and regulatory levers, by looking at the single and interaction effects of policies. As could be expected from the neo-Schumpeterian theory on innovation, differences emerge across sectors. Policies appear to be relevant in some sectors, namely energy, coke and refinery, and paper, but energy costs considerations dominate over the potential effects of CO 2 targeted policies. Overall, technological and organisational levels are both relevant: organisational innovations emerged as important in most sectors, often operating as a leading force in technological development. We expect this ‘complementarity’ to play a crucial role in the future path towards 2030 and 2050 aims, whose achievement is possible only by integrating technological, organisational and behavioural innovations. [ABSTRACT FROM AUTHOR]

Since IPCC Special Report on Carbon Dioxide Capture and Storage ( IPCC, 2005 ) was published there have been significant developments in international, regional and national law and regulations. The Special Report, being written in 2003–2005, reflected the relatively early nature of development of regulations pertaining to CCS and, in particular, geologic storage. The principle area of focus in the Special Report was marine treaties – namely the Convention for the Protection of the Marine Environment of the North-East Atlantic (OSPAR) and the London Convention – as they had been the focus of prior legal analysis and the parties to the treaties had begun their own consideration of the topic. Both marine treaties proceeded to remove their prohibitions on CO 2 geological storage, the London Convention in 2006 and OSPAR in 2007 ( IMO, 2006a; OSPAR, 2007c ). Another significant influence at this time was the work being undertaken to develop a CCS-focused chapter in the IPCC Guidelines for GHG Inventories ( IPCC, 2006a ). These guidelines set out how to undertake and report the GHG performance of CCS, creating a methodology for geological storage assessment and report that became the basis for subsequent CCS regulations. In the years following, there were numerous developments at the national and regional levels. For example, the EU CCS Directive was developed in 2007 and 2008 ( EC, 2009a ), to create an enabling framework for CCS, to remove barriers and allow it to proceed but also to ensure environmental protection. The Directive was adopted in 2009, along with a revision of the EU’s Emission Trading Directive ( EC, 2009a ) which brought CCS into the EU’s emissions trading scheme. CCS-specific laws and regulations have also been established at both the federal and state levels in the United States, and the commonwealth and state levels in Australia. The other major development in international law and regulations since the Special Report is the inclusion of CCS into the Clean Development Mechanism (CDM) under the UNFCCC’s Kyoto Protocol. This took several years, from 2005 to 2011, but in 2011 a new set of rules specific to CCS were developed and adopted which allows CCS to be a legitimate project activity under the CDM for developing countries to use ( UNFCCC, 2011b ). It is widely anticipated that future mechanisms developed under the UNFCCC and allowing CCS will follow the principles established by these CCS CDM modalities and procedures. These international developments potentially impact 180 countries. This paper provides a descriptive review of the key legal and regulatory developments since 2005, with a particular focus on the international developments. It also briefly reviews the application of permitting regimes to new CCS projects in the US and EU (Netherlands). [ABSTRACT FROM AUTHOR]

This paper analyzes the influence of ecological economics (EE) in the European Union (EU) political agenda, specifically the agenda-setting dynamics of the cap-and-trade (CAT) EE policy concept. We follow the model developed by Boezeman, Leroy, Maas, and Kruitwagen (2010), elaborating on the important factors for the rise of CAT in the EU political agenda, and on the EU emissions trading scheme (ETS) implementation issues. Although EE features are present in the EU political agenda, particularly in periods when international works and forums raised environmental awareness globally, its impact has been moderate and intermittent. Since the 80s, neoclassical economics views tend to dominate EU policy, furthering a "win-win" discourse between economic growth and environmental sustainability. More recently, climate change has rekindled EE concerns without shifting the prevailing paradigm. We conclude that EE did not influence significantly the rise of the CAT policy in the EU political agenda. Instead, this resulted from a combination of the political context around the Kyoto Protocol, the agency of EU actors and the CAT flexible framing among multiple stakeholders. Also, the EU ETS operationalization shows that political obstacles hindered the policy's success, suggesting that EE would benefit from further integrating in its theory political economy aspects. [ABSTRACT FROM AUTHOR]

The European Union Emissions Trading Scheme (EU ETS) is a cornerstone of the European Union's policy to combat climate change and its key tool for reducing industrial greenhouse gas emissions cost-effectively. The purpose of the present work is to evaluate the influence of CO 2 opportunity cost on the Spanish wholesale electricity price. Our sample includes all Phase II of the EU ETS and the first year of Phase III implementation, from January 2008 to December 2013. A vector error correction model (VECM) is applied to estimate not only long-run equilibrium relations, but also short-run interactions between the electricity price and the fuel (natural gas and coal) and carbon prices. The four commodities prices are modeled as joint endogenous variables with air temperature and renewable energy as exogenous variables. We found a long-run relationship (cointegration) between electricity price, carbon price, and fuel prices. By estimating the dynamic pass-through of carbon price into electricity price for different periods of our sample, it is possible to observe the weakening of the link between carbon and electricity prices as a result from the collapse on CO 2 prices, therefore compromising the efficacy of the system to reach proposed environmental goals. This conclusion is in line with the need to shape new policies within the framework of the EU ETS that prevent excessive low prices for carbon over extended periods of time. [ABSTRACT FROM AUTHOR]

The emergence of emissions trading as a standard feature of national climate mitigation strategies is commonly considered to be evidence of the neoliberalisation of environmental governance. The New Zealand Emissions Trading Scheme is distinctive among national climate mitigation programmes in its attempt to establish a financial liability for greenhouse gas emissions arising from agricultural production. This attempt, however, has been politically contentious, with strident and vocal opposition from some members of the agricultural sector. Drawing on the concept of “environmental subjectivities” this study explores farmers' contestation of the policy programme and ascribes the foundering of emissions mitigation in agriculture to the attempt to merely assign financial liabilities rather than cultivate subjects disposed to managing emissions in pastoral production. When discussing climate change and greenhouse gas mitigation during qualitative interviews, pastoral farmers directly challenged the aims and attributes of the ETS, often referring to how the scheme conflicted with existing objectives for farming and how the scheme confused financial liability with environmental responsibility. New Zealand's experience reveals potential contradictions between the political and economic justification for market-based instruments and the unruly subjectivities of market actors. The findings of this research suggest that market-based instruments alone may fail to cultivate environmental subjectivities and highlight the need for agricultural and environmental governance to address the social and cultural foundations of farming practices. [ABSTRACT FROM AUTHOR]

Highlights: [•] We compare eighteen post carbon transition strategies from government and non-government sources. [•] We analyse targets, technology, costs, equity, governance and social change aspects. [•] Strategies confirm technology and costs are not key transition barriers. [•] Strategies do not adequately explain pathways for rapid societal change. [ABSTRACT FROM AUTHOR]

Highlights: [•] Global aviation biofuel uptake is modelled under a future emissions trading policy. [•] Aviation CO2 emissions are compared with climate impact reductions. [•] Climate outcomes are much less favourable than CO2 outcomes for biofuel use. [•] Widespread use of aviation biofuel enables carbon- but not climate-neutral growth. [ABSTRACT FROM AUTHOR]

• Data on the impact of economic instruments on pollution are still insufficient. • Aviation emissions trading contributes to reducing transport CO 2 emissions. • Higher transport tax revenues result in lower GHG production. • A coordinated EU policy has confirmed its strong impact on greenhouse gas emissions. The main objective of this article is to examine how individual policy instruments contribute to reducing transport carbon emissions from transport in groups of EU countries. Multiple panel regression analysis was chosen as the research method, the impact of transport tax revenues on GHG emissions being expected to be negative. The results suggest that the influence of particular tax revenues on emissions varies between countries, differences being partly due to national legislations. Focusing on the explanatory variable of the price of aviation emissions allowances, the analysis supports our research hypothesis. The findings indicate that rising allowance prices contribute to the reduction of emissions, an increase in the EUAA price by €1 typically partially corresponding to a decrease in GHG emissions by 7.9 kg of CO 2 per capita. Further research should facilitate the selection of the most effective economic instruments and their mix at EU level. [ABSTRACT FROM AUTHOR]

Abstract: Following the introduction of the European Union Emissions Trading Scheme in 2005, the size of the carbon market has been growing at a tremendous rate. To meet the emissions reduction targets, the regulated parties can choose to participate in the allowance-based market by purchasing the spot allowances. Commencing in 2008, the regulated parties are also allowed to purchase the offset credits to meet their allowance limit. Given the risky nature of the offset credits, this paper evaluates the hedging performance of dynamic hedge ratios for the carbon offset credit (certified emissions reduction) market in the EU-ETS. To the best of our knowledge, this paper is the first attempt to evaluate the hedging performance of dynamic and constant hedge ratios in the carbon offset credit market. Based on the variance reduction and utility improvement measurements, the findings generally support the use of static hedge ratios over the more sophisticated, dynamic hedge ratios. [Copyright &y& Elsevier]

Abstract: There are now a number of small or medium-scale experiments where individuals can actively participate in permit markets. Where individuals retain permits, the remaining quota for polluting firms is decreased thereby theoretically increasing global welfare. This result lies on two major hypothesis: first, citizens have rational expectations and, second, they are risk-neutral. In this article, we provide theoretical arguments about the potential welfare-decreasing impact of citizen''s participation when at least one of these assumptions is violated. Importantly, our conclusions lead, in some particular cases, to recommend a limited participation of individuals in permit schemes while encouraging a better diffusion of information toward this class of potential participants. This is the case, for instance, when scientific uncertainty about a phenomenon is strong and citizens cannot estimate the marginal abatement cost with confidence. [Copyright &y& Elsevier]

Abstract: Carbon accounting has evolved rapidly over the past twenty years and now encompasses a wide range of activities with significant financial implications. This paper examines how competence in carbon accounting is being defined and claimed by different actors and communities. Specifically, it focuses on the role of the accountancy profession in carbon accounting, charting its engagement over time and its relationship with other communities involved in carbon accounting. The paper builds on recent work showing that multiple framings and activities are associated with carbon accounting, leading to conflicting views on what it means, how it should be done, and who should be involved. It draws on the concepts of epistemic communities and boundary-work to help explain the role of professions and the emergence of new institutions that mediate between different communities to achieve policy change. We find that, while accountants have undisputed authority in the field of financial reporting of rights and liabilities created under emissions trading schemes (’financial carbon accounting’), their claims to competence in other aspects of organisational carbon accounting overlap with those made by several other communities. Although the accountancy profession’s interest in organisational carbon accounting can be traced back at least as far as 2001, the introduction of emissions trading in Europe in 2005 coincided with the start of a new, as yet largely un-scrutinised, initiative to extend its claims of relevant expertise, through a variety of methods including the promotion of standards for disclosure of physical and strategic climate-related information. The Climate Disclosure Standards Board provides an example of a boundary organisation that has been established by different communities with an interest in carbon accounting, with mutually beneficial results, which has nevertheless resulted in the production of a new Climate Change Reporting Framework that is heavily aligned towards the existing competence of accountancy professionals. [Copyright &y& Elsevier]

Abstract: Increasing global demand for agricultural products will continue to affect biodiversity. Various strategies to address this tension, such as payments for ecosystem services, wildlife-friendly farming, and conservation-reserve planning, emphasize different aspects of the system and different policy approaches. We argue that the strategic approach must be matched to the region. That is, land-use policy and research agendas focusing on improving agronomic and ecological functioning need to be coordinated, and informed by integrated knowledge about the ecological, agronomic and socio-economic characteristics of a region. We trial the use of agricultural-production and biodiversity-conservation possibility sets as an integrating framework. We find two benefits. First, the process of developing production possibility frontiers enables researchers from different disciplines to jointly identify and debate the critical types and scales of interactions among production and biodiversity where there exist opportunities for improving the system. Second, we demonstrate how the shape of the biodiversity-production trade-off frontier, and where existing landscapes sit in relation to it, can determine the effectiveness of a policy in achieving production and conservation goals. Production possibility frontiers therefore provide a simple, flexible tool for a critical trans-disciplinary appraisal of policy, and can guide the choice of more sophisticated approaches to managing agricultural landscapes. [Copyright &y& Elsevier]

Abstract: The purpose of the present paper was to examine if Environmental Management Accounting, and especially its tool Environmental Cost Accounting, can support both the augmentation of environmental nonprofit/nongovernmental sector’s accountability, and the provision of meaningful results for policy decision making. Based on a case study at the Hunting Federation of Macedonia and Thrace, a nonprofit forestry organization responsible for the management and protection of wildlife resources in Greece, implications about the challenges of applying Environmental Management Accounting in the sector were examined. It was concluded that the existing Environmental Management Accounting tools can partly address the several dimensions of their operation and additional accounting regimes may be needed. Nevertheless, these tools can prove to be a useful starting point. [Copyright &y& Elsevier]

Abstract: In this work we display the importance of supply chain management through the use of Environmentally Extended Input-Output Analysis (EEIOA) and Life Cycle Assessment (LCA). Results show that for most sectors a majority of the energy/environmental loads are located in the upstream supply chain, both nationally and abroad. Using the tools outlined could therefore help to address important areas to focus the work and guide policies for future energy and emissions reductions. Actions can be at an international policy level, using taxes or other measures to counteract pollution havens, or they could include specific requirements of the products purchased, environmental labeling, or requirements relating to certifications of businesses were products and services are purchased from. The focus of this paper is the public sector, more specifically; the municipalities, where - despite the importance of upstream emissions is identified with a fraction of 90-95 percent - still most focus is on the 5-10% of the footprint relating to use of heating oil and fuel for transportation. [Copyright &y& Elsevier]

Abstract: The paper evaluates the effectiveness of strategies designed to reduce these pollutants in port areas, based on a newly developed assessment model to calculate emissions. The case study found that the strategy of reducing the ship’s speed to 12 knots is most effective in cutting fuel consumption and costs, as well as emissions. Adopting an onshore power supply system could reduce CO2 emission by 57.16% and PM by 39.4%. By adopting the strategies of both reduced speed and cold ironing emissions control, a reduction in emissions of 71% to 91% can be achieved with a 20 nautical mile reduced speed zone. Therefore, the goals of reductions in emissions to improve port areas air quality could be achieved through adopting a green port policy in the future. [Copyright &y& Elsevier]

Abstract: Whereas current risk profiling methods used in the maritime sector largely rely on detention risk, we extend them by considering various risk dimensions and by evaluating a wide range of risk factors including pollution and damage costs. Risk factors include ship particulars such as vessel type and the nature of companies and owners, as well as historical information on past accidents, inspections, and changes of particulars. We present methods to summarize and visualize the various risk dimensions paying particular attention to the identification of potentially risky companies. The results are obtained by combining unique data sets with information on ship arrivals, inspections, and accidents covering 2006–2010. [Copyright &y& Elsevier]

Abstract: This paper presents a mixed activity-based costing decision (MABCD) model for green airline fleet planning under the constraints of the European Union Emissions Trading Scheme (EU ETS), in which activity-based costing (ABC) model is incorporated with a modified product-mix decision model for total operating costs of individual flights under EU ETS constraints. A numerical example for comparing cost-effectiveness between the B747-400 airline and the A380 airline in one of the busiest route between Asia and Europe is demonstrated. It is shown that subject to different changes of revenue tone kilometers (RTK), the cost trends of carbon emissions and the changes in profits of different flight routes appear to be similar. Moreover, it is also shown that when the RTK are higher, a choice of a wider-bodied aircraft could lead to higher profits. Finally, it is shown that without the pre-assumptions of considering more complicated routes and financing methods, a self-purchased aircraft appears to contribute more profits. [Copyright &y& Elsevier]

Abstract: This article aims to empirically assess the impact of climate policy on technological change—a core objective of climate policy—by focussing on the changes it causes in the rate and direction of corporate innovation activities. To this end, we develop a cross-sectional framework based on concepts from evolutionary economics and organizational theory and, resting upon this framework, develop a set of hypotheses. We test these hypotheses using novel survey data on the electricity sector in seven EU countries. We find that the EU emission trading system (ETS) has limited and even controversial effects, and that long-term emission reduction targets are an important determinant of corporate innovation activities. Furthermore, technology policies emerge as an important element of the policy mix complementing climate policy. Based on our findings in this study, we make recommendations for policy makers on how to improve the existing policy mix. [Copyright &y& Elsevier]

Abstract: Considering low pollution problem of urban rail transit, reducing air pollution benefit is proposed in this study. Based on analysis of structure of reducing air pollution benefit, benefit of decreasing air pollution are described under considering the air pollution of power station of urban rail transit. A case study of line 1 of Shijiazhuang urban rail transit is given to demonstrate these models. Results show that benefit of reducing air pollution is 13.247 million RMB in 2013. Benefits of decreasing air pollution are 14.1552million RMB depending on traffic mode choice. In addition, air pollution costs of power station are 0.9082 million which is only 6.42% of reducing air pollution benefit depending on traffic mode choice. [Copyright &y& Elsevier]

Abstract: This paper established a new low-carbon economic development capability evaluation index system, and then collected relevant data of provincial economic development, energy consumption and carbon emissions in 2009.On this basis, this paper integrated use of factor analysis method and entropy weight method to calculate the provincial development capacity of low-carbon economy and to rank it, and then summarized development capability of national low-carbon economic, analyzed the ability of low-carbon economic development around the reasons for the differences. Finally, put forward low carbon economy countermeasures and Suggestions. [Copyright &y& Elsevier]

Abstract: This paper reviews the researches related to international carbon emission right trading. Based on the analysis of marginal abatement curves theory, it has been demonstrated that the fact that different countries or districts have different marginal abatement costs of carbon emission upon respective abatement promise gives rise to international carbon emission right trading. Furthermore, this paper proposes that developing countries should actively participate in the international carbon emission right trading in order to obtain due market benefits. Then, on the basis of the two-phase model, this essay also discusses the optimal exports scale of carbon emission right and its determinant factors, and evaluates the optimal export quantity of carbon emission right for China at the first phase. [Copyright &y& Elsevier]

In this paper we examine the innovation effects of environmental policy instruments in four literatures: theoretical models on incentives for eco-innovation, econometric studies based on observed data, survey analysis based on stated information and technology case studies. The aim of this paper is to critically examine the methods and the results. We argue that the case studies literature, even when its results are specific and difficult to generalise, is a necessary source of empirical evidence about policy impacts and the factors responsible for these impacts, pointing to issues that are neglected in the theoretical and econometric literature such as the specifics of the innovation context and policy interaction effects. The paper states five synthesised findings and makes a plea for multi-method analysis. One other important synthesised finding is that the influence of market-based instruments on innovation (such as emission trading and taxes) is far weaker than assumed. [Copyright &y& Elsevier]

Abstract: As part of its efforts to reach the targets of the Kyoto Protocol, in April 2009 the European Commission enacted new legislation to reduce the per-kilometer CO2 emissions of newly registered automobiles. This paper critically assesses this legislation with respect to its economic and technological underpinnings. First, we argue that the reliance on targets based on per-kilometer emissions not only conceals the true cost of compliance and thereby stifles informed public discourse, but is also less cost-effective than alternative measures such as emissions trading. Second, the emission targets stipulated in this legislation are based on linear-regression methods that we demonstrate to be poorly justified and misleading. Using instead stochastic-frontier analysis, which is argued to more accurately reflect the industry’s technological status quo, alternative targets are consequently proposed. [Copyright &y& Elsevier]

Abstract: This study assesses four proposals to generate funds for international climate financing in developing countries according to three criteria: adequacy, predictability and equitability. The focus year is 2020, in which USD 100 billion should be available for climate financing according to the Copenhagen Accord. The four financing proposals assessed include auctioning emission allowances (Norwegian Proposal), a global carbon tax (Swiss Proposal), an emissions trading (IET) levy, and a tax on international aviation and shipping emissions (bunker fuel emissions tax). Adequacy and predictability are assessed by calculating the revenue of the financing proposals for three mitigation scenarios. Equitability is assessed by comparing the regional distribution of costs of the financing proposals to that of a common but differentiated responsibilities and respective capabilities approach, which can be regarded as an equitable approach. For the calculations, the integrated FAIR model is used. Based on the three criteria above, we conclude that the Swiss Proposal and the bunker fuel emissions tax are the most promising financing proposals of the four. An IET levy receives a low score for all three criteria. Importantly, a low price on the carbon market, resulting from a low mitigation ambition level (as under the current unconditional Copenhagen Accord pledges), would undermine generating funding for all financing proposals analysed here except for the Swiss Proposal. Combining such proposals would therefore not increase the predictability of funding. [Copyright &y& Elsevier]

Abstract: We characterize a mechanism for reducing pollution emissions in which countries, acting non-cooperatively, commit to matching each others'' abatement levels and may subsequently engage in emissions quota trading. The mechanism leads to an efficient level of emissions, and if the matching abatements process includes a quota trading stage, the marginal benefits of emissions are also equalized across countries. Given equilibrium matching rates, the initial allocation of emission quotas (before trading) reflects each country''s marginal valuation for lower pollution relative to its marginal benefit from emissions. These results hold for any number of countries, in an environment where countries have different abatement technologies and different benefits from emissions, and even if the emissions of countries are imperfect substitutes in each country''s damage function. In a two-period setting, the mechanism achieves both intra- and inter-temporal efficiency. [Copyright &y& Elsevier]

Abstract: According to the current United Nations Framework Convention on Climate Change, China, as a developing country, does not need to undertake responsibilities and obligations of carbon emissions reduction, however as a responsible one with open market economy, it should make great effort to its research of carbon emissions trading system and actively build it at our own development level to make positive contribution to reduce the world''s carbon emissions. This paper defines the commodity property of carbon emission right, which can be divided and traded, identifies the basic characteristics of China''s trading carbon emissions trading system is cap-and-trade mechanism at present stage, and puts forward that China''s total emission control is not an absolute target, but a relative one. [Copyright &y& Elsevier]

Abstract: This paper analyzes the optimal choice of allowance allocation method for the emissions trading system to be established under China''s carbon intensity target. Compared with emission-based allocation, output-based allocation could help to realize the industry''s optimal welfare in a closed trading system and thus is more appropriate for the emissions trading system to be established in China. However, the output-based allocation does face some challenges in the implementation process. An ex-post adjustment approach is proposed to ensure that the allocation rate equals to the carbon intensity target and a conversion factor approach proposed to convert different types of products into the same measure. [Copyright &y& Elsevier]

Abstract: Transaction costs are considered an essential factor that can adversely affect the performance of emissions trading markets. However, most studies are based on a static analyzing framework, making it difficult to simulate real economic situations, in which the dynamic behavior and interaction between firms in an emission trading system are fairly complicated and appear irrational to some extent. Based on an agent-based modeling approach, an artificial sulfur dioxide (SO2) emission trading market is developed to identify the dynamic influence of transaction costs on market efficiency. The simulation results based on empirical data from Jiangsu Province in China reveal that transaction costs have a negligible effect on the market price. However, transaction costs can block a small amount of trading as well as decrease total emission trading amount and market efficiency. Therefore, the policy design of emission trading in China should treat transaction costs carefully. [Copyright &y& Elsevier]

Abstract: As part of the Copenhagen Accord, individual countries have submitted greenhouse gas reduction proposals for the year 2020. This paper analyses the implications for emission reductions, the carbon price, and abatement costs of these submissions. The submissions of the Annex I (industrialised) countries are estimated to lead to a total reduction target of 12–18% below 1990 levels. The submissions of the seven major emerging economies are estimated to lead to an 11–14% reduction below baseline emissions, depending on international (financial) support. Global abatement costs in 2020 are estimated at about USD 60–100 billion, assuming that at least two-thirds of Annex I emission reduction targets need to be achieved domestically. The largest share of these costs are incurred by Annex I countries, although the costs as share of GDP are similar for Annex I as a group and the seven emerging economies as a group, even when assuming substantial international transfers from Annex I countries to the emerging economies to finance their abatement costs. If the restriction of achieving two-thirds of the emission reduction target domestically is abandoned, it would more than double the international carbon price and at the same time reduce global abatement costs by almost 25%. [ABSTRACT FROM AUTHOR]

Abstract: This articles argues that extraction and emission caps are a promising strategy for a sustainable degrowth transition, but that their design and implementation is far from simple. We draw attention to the institutional structures and processes through which caps are to be set, designed and enforced, and discuss the danger of eco-authoritarian politics in the name of enforcing caps or other environmental limitations. [ABSTRACT FROM AUTHOR]

Abstract: Japanese government submitted the medium-term target to the secretarial office of Framework Convention on Climate Change that Japan would decrease 25% of greenhouse gases compared with 1990 emissions. This commitment was highly evaluated worldwide. However, some experts criticize that it is impossible to maintain sustainable development under such severe target. This article aims at investigating whether we could realize sustainable development under such ambitious target of reducing greenhouse gas emissions. For this purpose, we first evaluated possible technology options and system innovation along with economic options. Technology options include efficiency improvement, renewable energy technologies and nuclear power technologies. Economic options include carbon tax, emissions trading scheme and feed-in-tariff for renewable energies. Once the promising technologies and policy options were listed up, we integrated these options in a computable general equilibrium model for Japan, which we developed, so as to evaluate the impact to national economy. As results, we identified the condition, how we could realize sustainable development under the 25% target of reducing greenhouse gas emissions. [ABSTRACT FROM AUTHOR]

Abstract: With increasing renewable energy targets and the use of biomass for energy production, questions arise about the sustainability of differing types of bioenergy. Much has been made about the renewable transport fuel obligations and the impact the production of biofuel can have on the environment, but there has been less consideration of more small scale biomass heating systems. This work examines the life cycle impacts of the production and use of three such systems using waste wood in the South West of England. Burning of wood in the UK was reduced after the introduction of legislation to reduce smog in the 1950s, and so the impact of the emissions from the boilers has been examined. Whilst the boilers studied complied with UK emissions legislation, the emissions were the most significant impact found. However, there were differences in the emission levels depending on the loading of the boiler. In all cases the energy payback of the systems was under one year, ranging from approximately four to ten months. [ABSTRACT FROM AUTHOR]

Abstract: This study provides a brief evaluation of the relationship between trends in transport emissions and urban land-use by analysing correlation between transport CO2 emissions data, GDP and population data with land-use change data from the CORINE database for EU Member States between 1990 and 2000. It concludes that the correlation between transport CO2 emissions and the increase of artificial land area is much stronger than the correlation between CO2 emissions and GDP or population data. The paper argues that this correlation is a strong justification for using land-use based policies to reduce CO2 emissions. [Copyright &y& Elsevier]