In respect to carbon emission targets set in the Kyoto Protocol in 1997, emission quotas trading will be implemented among the Annex-B participating countries to lower the mitigation costs of the international cooperation on climate change issue. Nonetheless, in the way the market was designed, the States of the Former Soviet Union and Eastern Europe are likely to become large sellers of carbon...

For years economists have urged policymakers to use market-based approaches such as cap-and-trade programs or emission taxes to control pollution. The SO2 allowance market created by Title IV of the 1990 U.S. Clean Air Act Amendments represents the first real test of the wisdom of economists’ advice. Subsequent urban and regional applications of NOx emission allowance trading took shape in the ...

This paper sets out from a brief overview of the fate of market-based instruments in environmental policy in the past and proceeds to discuss the potential benefits and pitfalls of international carbon emission trading (IET), the most promising of the Kyoto mechanisms (IET, JI and CDM). The problems of trading ’hot air’, the supplementarity requirement in Article 17 of the Kyoto Protocol and at...

On December 19, 2017, China announced the official start of its national emission trading system (ETS) construction program. When fully implemented, this program could more than double the volume of worldwide carbon dioxide emissions covered by either tax or tradable permit policy. Many of program’s design features follow experience with China’s pilot programs but contrast with much of the expe...

The climate change discussion in the framework of the Kyoto protocol has clearly emphasized the need for reliable methods to value projects targeted on reduction of greenhouse gases. Moreover, the recent carbon price development in the mandatory EU Emission Trading Scheme exhibits the insisting importance of accurate risk management when business is exposed to greenhouse gas emissions. In this ...

The growing concern for global warming caused by the increased atmospheric concentration of carbon dioxide (CO2) has a significant effect on environmental and energy policies and economic activities, due to the ever-increasing use of fossil fuels such as coal, oil and natural gas throughout the world. A variety of complexities and uncertainties exist in CO2-emission-related processes and variou...

The carbon emissions trading market and direct power purchases by large consumers are two promising directions of power system development. To trace the carbon emission flow in the power grid, the theory of carbon emission flow is improved by allocating power loss to the load side. Based on the improved carbon emission flow theory, an optimal dispatch model is proposed to optimize the cost of b...

This paper explores the effect of China’s emission trading scheme (ETS) pilot policy implemented during 2013-2014 on carbon performance. Adopting Difference-in-Difference (DID) model, we find that: 1) ETS can significantly improve performance listed companies in provinces. 2) The heterogeneity analysis shows that eastern coastal areas has improved significantly, which is not significant central...

The carbon emission of China’s industry accounts for more than 70% of the total in the nation, thus the implementation of carbon emission quota trading in industry is of great importance to realize China’s national carbon emission reduction targets. Meanwhile, the allocation of carbon emission quota among sectors or enterprises proves the first and critical step. For this reason, this paper con...