We assess recent Chinese climate policy proposals in a multi‐region, multi‐sector computable general equilibrium model with a Chinese carbon emissions trading scheme (ETS). When the emissions intensity per GDP in 2020 is required to be 45% lower than in 2005, the model simulations indicate that the climate policy‐ induced welfare loss in 2020, measured as the level of GD...

We examine the challenges and opportunities to introduce emissions trading (ETS) in China’s electricity sector, in which the interaction between ETS and electricity market reform plays a major role. China’s electricity sector is currently in a slow progress towards a more competitive and market-based system. Both equal share dispatching policy and regulated wholesale and retail pricing policies...

a r t i c l e i n f o JEL classification: Q53 Q55 M40 C33 Keywords: CO2 emissions R&D expenditures IFRS adoption European manufacturing firms TAR model This study examines the impact of research and development (R&D) expenditures on carbon dioxide (CO2) emissions prior to and under the mandatory adoption of International Financial Reporting Standards at the firm level within the manufacturing s...

We provide a quantitative assessment of policy options to inform the 2021 review EU Emissions Trading System (ETS) and raise climate ambition. use permit trading model in which firms utilize rolling finite planning horizons, replicates historical price banking developments well compared an infinite horizon. When have bounded foresight, indirectly raising ambition through Market Stability Reserv...

A cointegrated vector autoregressive (CVAR) model is estimated to determine the dynamic relationship between Nordic wholesale electricity prices and EU emissions trading scheme (EU-ETS) CO2 allowance prices. An impulse response analysis reveals that electricity prices have large short-term responses to CO2 price shocks, but that this response dampens over time. Using hourly Nordic electricity s...

The EU Green Deal calls for climate neutrality by 2050 and emission reductions of 50–55% in 2030 comparison to 1990. Achieving these requires a substantial tightening the regulations emissions trading system (EU ETS). This paper explores how power sector would have change reaction tighter ETS target, analyses technological economic implications. To cover major sectors, we combine detailed model...

The adoption of emissions trading scheme (ETS) and renewable energy sources (RES) policies have been essential to achieving China’s national targets for reducing CO2 emissions and developing non-fossil energy sources. The combination of ETS and RES policies raises an important issue: What is the effect of combining ETS and RES policies on the existing carbon market and economy? Focusing on the ...