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Carbon emissions from the refining industry are receiving increasing national attention. In view of long-term sustainable development, a carbon pricing mechanism oriented to carbon emission reduction needs to be developed. Currently, the two most common carbon pricing instruments are emission trading system and carbon tax. Therefore, it is important to study the carbon emission problems in the refining industry under emission trading system or carbon tax. Based on the current situation of China's refining industry, this paper constructs an evolutionary game model for backward and advanced refineries to explore which instrument is more effectively applied in the refining industry and identify the effective factors that can promote carbon emission reduction in refineries. According to the numerical results, if the heterogeneity of enterprises is small, the government's implementation of an emission trading system is the most effective measure, while carbon tax can only ensure that the equilibrium strategy solution is (1,1) when the tax rate is high. If the heterogeneity is large, the carbon tax policy will not have any effect, indicating that government implementation of an emission trading system is more effective than the carbon tax. In addition, there is a positive relationship between carbon price, carbon tax, and refineries' agreement to carbon emission reduction. Finally, consumers' preference for low-carbon products, R&D investment level, and R&D spillover effect have nothing to do with carbon emission reduction. Only by reducing refinery heterogeneity and improving the R&D efficiency of backward refineries can all enterprises agree to carbon emission reduction. [ABSTRACT FROM AUTHOR]

In the context of tax sharing reform and land reform during the 1990s, local governments in China relied heavily on land finance. Local governments have fierce competition in attracting investment, omitting the development of green economy. Based on the data of industrial land sales and carbon dioxide emissions, this study constructed the panel data of 196 cities in China from 2007 to 2017 and analyzed the spatial and temporal evolution characteristics of urban industrial land price distortion and carbon emission intensity. Furthermore, a multiple linear regression model was constructed from the aspects of scale effect to empirically analyze the overall impact and differential impact of urban industrial land price distortion on carbon emission intensity. With the help of the mediating effect model, the mechanism of urban industrial land price distortion on carbon emission intensity was investigated from the perspective of industrial structure upgrading. The results showed that (1) the higher the price distortion of industrial land is, the more detrimental it is to the development of green and low-carbon economy. (2) The regional heterogeneity test showed that the impact of industrial land price distortion on carbon emission intensity is most significant in the central region, medium cities, and cities with low fiscal self-sufficiency rates, respectively. (3) The higher the distortion degree of industrial land price, the greater the restriction on the upgrading of industrial structure, further increasing the carbon emission intensity. This paper provides policy implications for the market-oriented reform of land factors and the realization of the "double carbon" goal. [ABSTRACT FROM AUTHOR]

The national unified carbon trading market has been officially launched at the end of 2017. The carbon emission quotas should be primary concern, which can be allocated in the form of free and paid ways. However, few literatures studied the economic and environmental impacts of quotas allocation. Thus, this paper constructs 7 scenarios and employs a dynamic, recursive computable general equilibrium (CGE) model to simulate carbon trading market, to probe the relationship between quota allocation and carbon price, and the economic and environmental impact of carbon trading scheme (ETS). Empirical results indicate (1) carbon price has an upward trend with time, which reflects a corresponding increase in emission reduction pressure. Specifically, carbon price increases from 12.44–90.57 CNY/t in 2017 to 65.20–523.44 CNY/t in 2030. In addition, whether under carbon intensity criterion (CIC) or carbon emission criterion (CEC), there is a positive relationship between carbon price and free allocation ratio due to the change of the relationship between supply and demand of quota. With a given free allocation ratio, the price formed with CIC grows faster than that with CEC. (2) Compared with the benchmark scenario, the GDP of China decreases in all scenarios. However, a high level of free allocation ratio combined with CIC may prevent GDP dropping too fast. (3) As for industrial output, covered industries in ETS undertake the largest output losses with an average decline by 4.03–13.60%. Similar to GDP variation, a high free allocation ratio combined with CIC is helpful for sustainable development of industry. (4) Carbon trading has a remarkable effect on emission reductions both in covered and uncovered industries of ETS. Free allocation will reduce market efficiency, which implies it should be cut down gradually at the later stages. [ABSTRACT FROM AUTHOR]

Carbon trading market is a central policy tool for promoting cleaner enterprises' energy consumption and investment behaviors. It is crucial for enterprises to establish a green and low-carbon development model by clarifying carbon trading impact mechanism on enterprise behaviors and the interactive relationship between entities in the carbon market. China's contract-based carbon market is still in the development stage, the impact of the mainstream allowance mechanism and government regulation on enterprises' energy behaviors has yet to be determined. In view of this, this paper describes mathematical mechanisms of the influence of carbon prices and carbon quotas on enterprises' energy consumption and investment, and the evolutionary game model of government-enterprise behaviors is constructed, the evolution process and appropriate strategies of enterprises' energy behaviors in the development of the carbon market are discussed. This paper uses real data of China carbon market to simulate the model, it is found that strategies such as relaxation of carbon quotas and carbon subsidies dynamization are needed during the initial development of the market. In the mature stage of the carbon market, strategies are needed to increase the proportion of government carbon revenue and reduce its regulatory cost. The higher the initial willingness of government-enterprise, the better the effect of strategies and the constraints of public willingness. The model and results have theoretical implications for enterprises' energy transformation and government regulation, and provide a reference for the development of China's carbon market. • Constructed benefit-cost analytical framework for enterprises' energy behaviors. • Described mechanisms of carbon trading affecting enterprises' energy behaviors. • Constructed government-enterprise behaviors model by the evolutionary game theory. • Found new conclusions of enterprises' energy behaviors under the carbon market. [ABSTRACT FROM AUTHOR]

Numerous studies have discussed the economic impacts of the COVID-19 pandemic in recent years. However, the effectiveness and trade-offs of diverse countermeasures still need to be investigated, particularly under the long-term goal of low-carbon transition, which is crucial for understanding the potential impacts of the future public health emergency (PHE) related economic crisis. Given that China still faces big pressures from the potential PHE and carbon neutrality, this paper assesses the effectiveness of policy instruments in restoring the economy and advancing green development after the PHE using the Dynamic Stochastic General Equilibrium framework. Our findings reveal that the PHE imposes more constraints on the economy because of the decrease in productivity on the supply side and in consumption on the demand side. Compared to the other counterparts, the mixed stimulus can overcome the adverse impacts of the PHE while contributing to carbon reduction. Furthermore, all types of low-carbon policies investigated in this study can contribute to carbon reduction at the expense of economic growth. Meanwhile, the carbon tax realizes the target of reducing emissions with the smallest negative impact on economic growth. Thus, we suggest adopting the carbon tax policy as the most effective low-carbon measure to address uncertainties associated with the PHE. • This study explores pathways for advancing economic recovery and green development after the public health emergency. • We develop a scenario-based dynamic stochastic general equilibrium (DSGE) model. • We characterize public health emergency shocks from a supply and demand perspective. • The model introduces different carbon abatement mechanisms. [ABSTRACT FROM AUTHOR]

Promoting the trading of blue carbon generated by marine ranching (MR) is essential for China to achieve its carbon peaking and carbon neutrality goals. As blue carbon trading develops, it remains uncertain whether it can promote the transformation of marine ranching firm (MRF) from traditional fishery aquaculture-type MR (FAMR) to more eco-friendly conservation-type MR (CMR). This paper constructs a game model involving MRF and the government to explore the impact of blue carbon trading on the transformation of MRF' production modes by considering carbon asset renting, carbon cap-and-trade, government subsidies, and green investment, which is of great significance in managing coastal marine and aquatic organisms, as well as promoting sustainable development of the marine economy. Research shows that the price and demand of FAMR products are solely influenced by carbon cap-and-trade. The introduction of carbon rents will increase the incentive for MRF to choose CMR, and this incentive is further enhanced when government subsidies are provided. Concurrently, green investment and MRF's profit have an inverted-U relationship. Both government subsidies and blue carbon trading will increase blue carbon. Although this policy will also increase MRF's carbon emissions, the carbon surplus generated by MRF will be higher than without subsidies. • A game model considering MRF, and government was developed. • Carbon asset renting can lead MRF to choose greener CMR production mode. • MRF is more willing to provide green investments when subsidy is offered. • MRF's green investment volume has an inverted-U relationship with profits. • Government subsidies and blue carbon trading can increase carbon surpluses. [ABSTRACT FROM AUTHOR]

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In recent years, with the intensification of global warming and the greenhouse effect, the global consensus has focused on efficient, clean, low-carbon, and green development as a means of achieving new economic growth. China, as a major carbon emitter, has been at the forefront of efforts to reduce carbon emissions. The establishment of the carbon emissions trading market, commonly known as the "carbon market", provides an economic solution for reducing carbon emissions in both the carbon and energy markets. As China's carbon market continues to grow rapidly, fluctuations in the energy or carbon markets caused by information shocks can easily spread between the two markets, leading to increased interconnectedness. Moreover, the spillover effect of the volatility between China's carbon market and energy market is not constant, and the intensity and direction of this effect vary depending on different market volatility levels and periods. Therefore, it is crucial to conduct a comprehensive study on the characteristics of the volatility spillover effect between China's carbon market and energy market and to fully understand the mechanism of energy regulation on carbon prices. This research will have significant practical implications for promoting the establishment of a well-functioning internal price transmission mechanism between China's carbon market and energy market. This study took the risk spillover between the carbon market and energy market as the research object and systematically combed through its pricing mechanism and spillover impact. Through constructing the DY overflow index model based on a VAR model and generalized variance decomposition method, this study explored the linkage between China's carbon and energy markets, i.e., the linkage of price fluctuations between China's energy and carbon markets, as well as the time-varying nature of inter-market spillovers, and provides suggestions on the risk control of price fluctuations between the carbon and energy markets. [ABSTRACT FROM AUTHOR]

Inter-provincial power transmission in China solved the problem of electricity production and consumption spatial mismatch, which also facilitated Chinese green energy transition and sustainable development. Aiming to understand the spatial patterns and main driving factors, this paper accounted the aggregate carbon intensity per electricity produced by each province, built the inter-provincial Out–Destination matrixes of carbon emission embodied in power transmission among 27 provincial areas of 2006 and 2019, and quantitatively analyzed the change in spatial patterns of carbon flow and carbon intensity difference between power inward and outward provinces. We found that the inter-provincial power transmission has led to the reduction in the national average carbon intensity per electricity produced from 0.855 kg/kWh in 2006 to 0.628 kg/kWh in 2019 and the green energy transition of all provinces. The spatial morphology characteristics of carbon flow show the 'three corridors of West-East Power Transmission (WEPT)' pattern, in which power is transmitted from some main thermal power-dominated provinces in central and north-west China to the eastern coastal provinces. Further, it resulted in the carbon leakage from electricity consumption of the coastal provinces and carbon overload of the hinterland provinces. Despite natural resource endowment, the location of the provinces in the national power grid, the national low-carbon energy transition strategy, as well as advances in long-distance ultra-high-voltage power transmission technologies were the main factors to the formation and evolution of Chinese electricity green transition. [ABSTRACT FROM AUTHOR]

As a result of the COVID-19 pandemic, production costs have grown, while human and economic resources have been reduced. COVID-19 epidemic costs can be reduced by implementing green financial policies, including carbon pricing, transferable green certificates, and green credit. In addition, China's tourist industry is a significant source of revenue for the government. Coronavirus has been found in 30 Chinese regions, and a study is being conducted to determine its influence on the tourism business and green financial efficiency. Econometric strategies that are capable of dealing with the most complex issues are employed in this study. According to the GMM system, the breakout of Covid-19 had a negative effect on the tourism business and the efficiency of green financing. Aside from that, the effects of gross capital creation, infrastructural expansion, and renewable energy consumption are all good. The influence of per capita income on the tourism industry is beneficial but detrimental to the efficiency of green finance. Due to the current pandemic condition, this report presents a number of critical recommendations for boosting tourism and green financial efficiency. [ABSTRACT FROM AUTHOR]

As China's economy is transforming into a new normal stage, the energy industry is becoming increasingly innovation-driven, which is shown particularly in renewable energy. Given that the green innovation transformation is crucially critical during China's new normal stage, this paper analyzes the direct impact of energy consumption on energy innovation and innovation transformation, and reveals the net effect of green innovation transformation on economic sustainability and energy consumption. Micro and macro empirical evidence are both provided in this paper by implementing two estimation methodologies: fixed effect model and Generalized Method of Moments (GMM) Vector AutoRegression (VAR) approach, respectively. Estimating Chinese micro 153 listed energy companies' data and macro 30 provincial data from 2009 to 2016, we find that: (1) In terms of energy enterprises' innovation activity behavior, energy consumption could promote total energy innovation, of which renewable energy innovation is stimulated far more significantly. (2) There is an increasing tendency for energy structure to transform into renewables as the energy consumption increases. (3) The green innovation transformation, instead of total innovation counts, can reduce energy consumption and benefit economic sustainability. Therefore, the structure of innovation transformation plays more significant role than total energy innovation in stimulating economic growth, and alleviating the energy consumption antinomy during China's new normal stage. In this regard, in order to stimulate green energy transformation, government should implement financing policy, reduce administrative intervention, upgrade energy legal system and improve energy pricing mechanism to encourage more research and development (R&D) activities at the core of renewable energy. • Provide evidence from both micro- and macro-economic perspectives. • Energy consumption stimulates renewable energy innovations more. • Transformation towards renewables is driven by high energy consumption. • Green innovation transformation decreases energy consumption in the long run. • Green innovation transformation benefits economic sustainability. [ABSTRACT FROM AUTHOR]

With the continuous development of the global economy, the rapid deterioration of the global ecological environment has caused a huge impact on the future development of the world. In order to solve the problem of global warming and enhance the self-development capacity of all countries, based on the concept of sustainable development, China has set the ambitious goal of dual carbon. To this end, China is actively promoting the establishment of a national carbon emissions trading system. In response to low price competitiveness, such as nonstandard trading system, the influence of the development of the carbon emissions trading system in the future, should not only attach importance to enrich and strengthen the basic function of the carbon market, also continue to carbon pricing system and in-depth reform of the fiscal and taxation system, clear up the thoughts to the carbon market trading rules, is on its relevant rights and obligations, firmly adhere to steadily promote carbon market links between countries. Currently, China’s carbon emission trading is still in its infancy, and its effect is still limited in specific practice. Meanwhile, carbon emission trading markets in developed countries such as the United States and the United Kingdom have begun to implement carbon tariffs and other means to maintain their carbon borders. Therefore, the construction of carbon emission trading is necessary for development, but also for the sustainable development of the country. The lag of China’s carbon emission market leads to the worsening of the problem of carbon excess emissions of industries in the regions not covered, and the increased economic burden caused by the carbon barriers of other countries in foreign trade. Of course, this requires China take the path of sustainable development to continue to strengthen the system construction of carbon emission rights and promote the further optimization of their functions. [ABSTRACT FROM AUTHOR]

Climate change and increased greenhouse gas emissions boost the global average temperature to less than 2°C, which is the estimated breakeven point. The globe is moving into blue pollution economies as the environmental sustainability objective becomes more distorted. The study looked at three United Nations Sustainable Development Goals, namely (i) affordable and clean energy; (ii) industry, innovation, and infrastructure; and (iii) climate change, to see how far the Chinese economy has progressed toward green and clean development strategy. In the context of China, the "pollution damage function" was intended to refer to carbon damages related to carbon pricing, technological variables, sustained economic growth, incoming foreign investment, and green energy. The data was collected between 1975 and 2019 and analyzed using various statistical approaches. The results of the autoregressive distributed lag model suggest that carbon taxes on industrial emissions reduce carbon damages in the short and long run. Furthermore, a rise in inbound foreign investment and renewable energy demand reduces carbon damages in the short term, proving the "pollution halo" and "green energy" hypotheses; nonetheless, the results are insufficient to explain the stated results in the long run. In the long run, technology transfers and continued economic growth are beneficial in reducing carbon damages and confirming the potential of cleaner solutions in pollution mitigation. The causal inferences show the one-way relationship running from carbon pricing and technology transfer to carbon damages, and green energy to high-technology exports in a country. The impulse response estimates suggested that carbon tax, inbound foreign investment, and technology transfers likely decrease carbon damages for the next 10 years. On the other hand, continued economic growth and inadequate green energy sources are likely to increase carbon pollution in a country. The variance decomposition analysis suggested that carbon pricing and information and communication technology exports would likely significantly influence carbon damages over time. To keep the earth's temperature within the set threshold, the true motivation to shift from a blue to a green economy required strict environmental legislation, the use of green energy sources, and the export of cleaner technologies. Source: Authors' self-extract [ABSTRACT FROM AUTHOR]

It is of great significance to reduce carbon emissions from electric power generation for green development. In addition to technical measures, two trading mechanisms are built to optimize China’s electric power generation: generation rights trading, and carbon emission rights trading. However, as the carbon emission rights trading are initiated, the issues of how to choose the right trading mechanism, and determining the appropriate strategy under the corresponding trading mechanism continue to confuse generation enterprises. In order to clarify these issues, the game theory was used to identify the proper trading strategies for generation enterprises under the two highly similar trade mechanisms. Results show that the two trading mechanisms are complementary to each other to some extent, and the generation enterprises should choose a proper trade strategy according to the endowment of generation prices, the technical abilities, the grid-loss price and the ratio of carbon-electricity conversion. The equilibrium solutions of trading scales and prices for the two trading mechanisms are mostly related to the endowments of generation prices. Generally, the buyers with higher endowments of generation prices should choose the carbon emission rights trading, and the buyers with lower endowments of generation prices can only benefit in generation rights trading. The bigger gaps between the endowments of generation prices of buyers and sellers are, the more likely the trade can be made and further result in a better environmental consequence. The conclusions provide suggestions to the government that, the grid-loss pricing and the ratio of carbon-electricity conversion could be used as key tools to regulate the market for both of the trade mechanisms. [ABSTRACT FROM AUTHOR]