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China's pilot carbon trading policy is expected to be both efficient and flexible in reducing carbon emissions through incentivising low-carbon innovation. This paper analyses the effects of this pilot policy on low-carbon innovation using a difference-in-difference model, based on a sample of selected enterprises and carrying out a series of robustness tests to corroborate the results. The analysis shows that the pilot carbon trading policy is predicted to have a significantly positive effect on the low-carbon innovation of enterprises that fall under its scope, notably by alleviating obstacles to the financing of low-carbon innovation. Furthermore, a heterogeneity analysis of enterprises' characteristics and carbon allowance allocation methods in different pilots indicates that the effect of the pilot carbon trading policy on enterprises' low-carbon innovation will be reflected mainly in enterprises in China's eastern provinces, and in state-owned enterprises. Compared with the grandfathering and historical intensity allocation methods, the findings of this study suggest that the extent of low-carbon innovation is significantly greater when the benchmarking method is used. The results of this paper offer some key insights into improving the policy design of a nationwide carbon trading market in China, as well as a reference point for other countries and regions, especially developing countries, in establishing a carbon trading market. Key policy insights China's pilot carbon trading policy can promote low-carbon innovation. Easing the financing constraints of enterprises can promote low-carbon innovation. Compared with the grandfathering and historical intensity allocation methods, using the benchmarking method significantly improves the enterprises' low-carbon innovation. [ABSTRACT FROM AUTHOR]

As a flexible power grid load regulation facility, the orderly participation of electric vehicles (EVs) in power grid load regulation is conducive to the low-carbon transformation of energy system. To measure the co-benefit effect of orderly charging and discharging of EVs on carbon reduction, power grid security and economy, We build the calculation model of orderly charging and discharging of China's EVs and compare the co-benefit effect of economic incentive orderly charging strategy, economic incentive + technology control orderly charging strategy under different penetration rates of EVs. Results show that in the Central China power grid, the peak load of can be reduced and valley load of can be improved by orderly charging and discharging with economic incentive + technology control strategy. With this method, 440 thousand EVs can reduce 31.2 thousand tons of coal consumption and 86.2 thousand tons of carbon emissions, save 4.29 billion yuan of project investment and increase 1.137 million KW grid margin. A 100% penetration rate of EVs can reduce 964.8 thousand tons of coal consumption and 2.25 million tons of carbon emissions, save 21.87 billion yuan of project investment, and increase grid margin by 5.79 million KW. • Peak-valley price policy is not the most effective orderly charging strategy. • The co-benefit effect is the largest through economic incentive + technology control. • Control technology is more important than electricity price economic policy. [ABSTRACT FROM AUTHOR]

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