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Based on the PSR conceptual evaluation model of urban green and low-carbon development competitiveness, this paper evaluates the green and low-carbon development competitiveness of 13 cities in Beijing-Tianjin-Hebei from 2010 to 2019 and reveals their spatial effects and obstacle factors combined with the spatial autocorrelation and obstacle model. The results show the following: (1) In terms of the overall situation, the evaluation index of urban green and low-carbon development competitiveness in the Beijing-Tianjin-Hebei region shows a fluctuating upward trend as a whole from 2010 to 2019. Among them, the comprehensive evaluation indexes of Beijing, Zhangjiakou, and Tianjin are very competitive, while Hengshui, Handan, and Xingtai are relatively weak. (2) In terms of spatial data analysis, the global and local Moran's I of Beijing-Tianjin-Hebei cities from 2010 to 2019 were positive and passed the 1% significant level test. This shows that the comprehensive evaluation index of urban green low-carbon development competitiveness of Beijing-Tianjin-Hebei cities has a positive spatial correlation, and the spatial agglomeration effect is significant. On the whole, it presents a spatial agglomeration pattern of "high in the north, partial jump, and low in the south". (3) In the aspect of obstacle factor analysis, the proportion of the tertiary industry output value in GDP, energy consumption of ten thousand yuan of GDP, the urban green technology innovation level, and industrial soot emission of ten thousand yuan of GDP are the main obstacle factors restricting the improvement of urban green low-carbon development competitiveness in Beijing-Tianjin-Hebei cities. [ABSTRACT FROM AUTHOR]

This study investigates the carbon compensation mechanism as a tool to promote coordinated economic and environmental development in China's Jing-Jin-Ji region (Beijing, Tianjin, and Hebei). A novel approach for calculating carbon compensation cost that integrate emission responsibility as well as carbon abatement cost through a bi-level programming model is proposed. Shared producer and consumer responsibility is established for carbon emissions under the multi-regional input-output model. Marginal abatement costs of Beijing, Tianjin, and Hebei are further calculated through the input-output and linear programming method. Results highlight that the emission responsibility allocation method significantly affects the inter-regional carbon compensation amount. The production-based approach leads to a 77% reduction of carbon compensation amount from Beijing to Hebei, and a 170% overestimation from Tianjin to Hebei compared with the shared responsibility approach in 2060. The optimal carbon compensation unit cost ranges from 1539 to 6438 yuan/ton when the carbon reduction ratio ranges from 10% to 20%. Beijing would compensate Hebei 3.56 and 29.74 billion yuan for achieving 10% and 20% emission reduction, respectively. Similarly, Tianjin's compensation for Hebei would be 0.23 and 1.87 billion yuan in the two scenarios. Results further show that implementing the proposed carbon compensation mechanism can reduce total abatement cost by 43% and 84% in Jing-Jin-Ji under the two scenarios. The methods and results of this paper could help inform future carbon compensation implementation in China and other countries. • Develop a bi-level programming model to determine optimal carbon compensation cost. • Consider emission responsibility and carbon abatement cost in Jing-Jin-Ji. • Resulting mechanism reduces abatement cost by 43% for 10% emission reduction. • Production-based allocation underestimates carbon compensation amount by 62%. • Optimal carbon compensation unit cost changes with marginal abatement cost. [ABSTRACT FROM AUTHOR]

Pairs trading is one of the mainstream statistical arbitrage strategies in current financial market practice that can seize possible arbitrage opportunities caused by mispricing between similar assets. Based on the theory of statistical arbitrage and the similar attributes of carbon emission allowances traded in different carbon markets, this paper studies the applicability of the pairs trading strategy among different pilot markets in China. The novelty and possible contribution of this paper are as follows. Firstly, this paper extends the statistical arbitrage-based pairs trading framework to the analysis of carbon market transactions in China, which broadens the understanding of the correlation between China's carbon markets. Secondly, this study explores the arbitrage opportunities among China's regional carbon markets that have not been revealed by previous studies. Thirdly, based on the pairs trading analytical model adopted in this study, this paper further investigates the operation characteristics of China's carbon markets and the interaction between markets, as the sensitivity of strategy performance to the key parameters is also discussed. The results show that arbitrage based on pairs trading is profitable. In the baseline case, the annualized arbitrage returns between the Shanghai emission allowance and Beijing emission allowance is about 9.11%, the highest among all pairs. However, there is almost no pairing relationship between the Tianjin carbon market and other markets. By discussing the time distribution of arbitrage signals generated by the pairs trading strategy, it is found that most signals are sent out during the inactive trading period in a compliance cycle. The conclusions provide valuable insights for formulating relevant carbon market regulatory policies and investors' participation in arbitrage activities in China's carbon trading markets. • The application of the pairs trading strategy is extended to the Chinese carbon markets. • Based on relative value arbitrage theory, arbitrage opportunities between markets are examined. • Pairs trading strategy can also yield sustainable and distinctive returns in the Chinese carbon markets. • Arbitrage trading between the Shanghai and Beijing markets may yield promising annualized returns with about 9.11%. [ABSTRACT FROM AUTHOR]

As the primary source sector of carbon emissions, the power industry's green innovation is an indispensable component of China's low-carbon transformation. This paper took China's Carbon Emission Trading Scheme as a quasi-natural experience and adopted the synthetic control method to evaluate the impact of Carbon Emission Trading Scheme pilot policy on power industry's green innovation based on the provincial industrial level data. Furthermore, this paper examined the impact mechanisms of Carbon Emission Trading Scheme on the power industry's green innovation through policy comparison, moderating and mediating effect analyses. The research findings show that: 1) there is heterogeneity in Carbon Emission Trading Scheme's effectiveness in inducing green innovation in China, the power industry only in Beijing and Guangdong has been significantly promoted, while other pilots have not; 2) the success of Beijing and Guangdong can be attributed to distinctive features of their carbon market and power industry, including the refined quota accounting mechanism, the application of paid quota allocation, the larger enterprise scale and more research and development investment; 3) enterprise scale and research and development investment have positive moderating effect and mediating effect in the promotional effect of the Carbon Emission Trading Scheme on green innovation respectively. Finally, some policy recommendations are put forward to promote the power industry's green innovation and carbon market construction. • Evaluate the impact of China's CETS on the power industry's green innovation in each pilot. • The CETS effects among pilots are heterogeneous, only significant in Beijing and Guangdong. • Rational CETS mechanism design could improve the power industry's green innovation. • Enterprise scale and R&D investment positively moderate and mediate the CETS effect. [ABSTRACT FROM AUTHOR]

As a basic structural unit of the city, the community plays a crucial role in decreasing carbon emissions and creating a low carbon city. This paper selects a classic and official low carbon community named Min'an Community in Beijing as a case to illustrate the governance mechanism of the low carbon community in China from the perspective of polycentric governance. The paper summarizes the government mechanism, market mechanism, and public participation mechanism in Min'an Community and analyzes the provision, monitoring, and enforcement of each mechanism. We find that unlike the low carbon governance at the city or industry park levels, China's low carbon governance at the community level lacks a dominant mechanism. Even though it involves community-wide governance, the public participation mechanism is also inadequate. For improving low carbon governance at the community level, the government should broaden finance channels to strengthen the incentive mechanisms, make active use of new technologies, such as mobile Internet, encourage innovation of public participation mechanism, and employ various publicity and education measures to cultivate the low carbon culture. [ABSTRACT FROM AUTHOR]