The Experts below are selected from a list of 9126 Experts worldwide ranked by ideXlab platform
Ying Fan - One of the best experts on this subject based on the ideXlab platform.
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modeling the Emission Trading Scheme from an agent based perspective system dynamics emerging from firms coordination among abatement options
European Journal of Operational Research, 2020Co-Authors: Ying Fan, Lei Zhu, Wolfgang EichhammerAbstract:Abstract Though sharing a similar practice form, the Emission Trading Scheme is distinguished from traditional financial markets: firms coordinate three abatement options at the micro level, including allowance Trading, output adjustment, and low-carbon technology adoption. Then, at the macro level, this leads to dynamic interactions among allowance market, output market, and low-carbon technology diffusion. This is the fundamental characteristic of the Emission Trading Scheme, and modeling the dynamics behind is a major difficulty for relevant studies, especially when following complexities are considered: (1) different planning horizons of the three abatement options, (2) heterogeneity among sectors and firms, and (3) details of firms’ production and optional low-carbon technologies. Aiming at this difficulty, we establish an agent-based model for the Emission Trading Scheme, and within a novel multi-level time frame, the fundamental characteristic is reflected and the complexities are considered. Firms’ production and low-carbon technologies are discretely modeled at a process level from a bottom-up perspective, and based on European data, our model is calibrated to cover 5 industrial sectors, 11 Emission-intensive products, 25 production processes, and 52 low-carbon technologies. With this model, the emergence properties and uncertainty of the system are captured, and the non-linear impact of the abatement target is reflected and discussed. We find that, after a certain level, higher target leads to lower allowance price uncertainty but stronger output impact, which is a trade-off for setting the abatement target.
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the risk spillover from economic policy uncertainties to the european union Emission Trading Scheme
arXiv: General Economics, 2020Co-Authors: Jiqiang Wang, Jianfeng Guo, Pengfei Dai, Yinpeng Liu, Ying FanAbstract:The European Union Emission Trading Scheme is a carbon Emission allowance Trading system designed by Europe to achieve Emission reduction targets. The amount of carbon Emission caused by production activities is closely related to the socio-economic environment. Therefore, from the perspective of economic policy uncertainty, this article constructs the GARCH-MIDAS-EUEPU and GARCH-MIDAS-GEPU models for the impact of European and global economic policy uncertainty on carbon price fluctuations. The results show that both European and global economic policy uncertainty will exacerbate the volatility of carbon price returns, with the latter having a stronger impact. Moreover, the volatility of carbon price returns can be forecasted better with the predictor of global economic policy uncertainty. This research can provide some implications for market managers in grasping market trends and helping participants control the risk of fluctuations in carbon allowances.
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buying green or producing green heterogeneous emitters strategic choices under a phased Emission Trading Scheme
Resources Conservation and Recycling, 2018Co-Authors: Lei Zhu, Linju Chen, Ying FanAbstract:Abstract Given the heterogeneous participants and temporal breaks involved in Emission Trading, it is reasonable to find permanent deviation of these markets from a rational expectation equilibrium (REE) status. However, the REE assumption underlies most existing studies, including those focused on the price-deviation phenomenon. They tend to ignore the heterogeneity among regulated firms, as well as the effects of such heterogeneity on Emission Trading, market equilibrium, and market efficiency. For the first time, we abandon the equilibrium assumption in the analysis of Emission-Trading markets and develop an artificial market in which regulated firms are modelled as heterogeneous agents with different allowance demands, abatement costs, technology preferences, and market expectations. Their behaviours are governed by a set of pre-specified rules, rather than directed by the economic optimization goals. The firms in China’s iron and steel sector are selected for simulation. Our results identify some phenomena that can hardly be explained under a REE framework: 1) carbon price significantly fluctuates and deviates from the REE value; 2) regulated firms tend to over invest in Emission-abatement techniques, which further results in allowance over-supply in the markets; 3) while the Emission-Trading Scheme does promote abatement actions among regulated firms, the theoretical arguments for its advantage in mitigation cost-saving seems illusionary. The artificial Emission market establishment here may help policy makers better understand the irrational behaviours and phenomena in real-world Emission Trading, and thereby improve the design of Emission- Trading Schemes.
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a big data study on emitting companies performance in the first two phases of the european union Emission Trading Scheme
Journal of Cleaner Production, 2017Co-Authors: Yinpeng Liu, Jianfeng Guo, Ying FanAbstract:As CO2 Emissions are quantified by allowances and traded in markets, wise Trading strategies will bring emitting companies higher profits or lower costs. Based on the big data of Community Independent Transaction Log (CITL), this article hereby presents a micro study on the emitting companies' efforts in increasing profits and saving costs during the allowances Trading in the first two phases of the European Union Emission Trading Scheme (EU ETS). The efforts are measured by an after-action factor of Trading performance, which is built on a series of behaviour and monetary variables. By comparison, demanders of the emitting companies are more inclined to reach a higher Trading performance, while that inclination is heterogeneous among the suppliers. In addition, emitting companies with lower Emission levels had a better Trading performance. With a higher proportion of low-emitting companies, the manufacturing sector had a better Trading performance than the energy sector. The effect of the Trading requirement on Trading performance are investigated via a quantile regression mode. Results suggest that: (1) the selling requirement of suppliers has a positive effect on their Trading performance, while the effect becomes weaker when the selling requirement increases; (2) the buying requirement has a positive effect on the demanders' Trading performance only when the requirement is high, and the effect becomes stronger as the requirement increases; and (3) when the buying requirement is at a lower level, demanders' Trading performance becomes worse as the requirement grows. The conclusion is that the Emission level, industrial sector and Trading requirement do have influences on the Trading performance of emitting companies in Emission Trading.
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the impact of chinese carbon Emission Trading Scheme ets on low carbon energy lce investment
Energy Policy, 2016Co-Authors: Paolo Agnolucci, Maorong Jiang, Ying FanAbstract:China is planning to introduce Emission Trading Scheme (ETS) to decrease CO2 Emission. As low carbon energy (LCE) will play a pivotal role in reducing CO2 Emissions, our paper is to assess the extent and the conditions under which a carbon ETS can deliver LCE investment in China. We chose wind technology as a case study and a real-option based model was built to explore the impact of a number of variables and design features on investment decisions, e.g. carbon and electricity price, carbon market risk, carbon price floor and ceiling and on-grid ratio. We compute critical values of these variables and features and explore trade-offs among them. According to our work, a carbon ETS has a significant effect on wind power plant investment although it cannot support investment in wind power on its own. Carbon price stabilization mechanisms such as carbon price floor can significantly improve the effect of carbon ETS but the critical floor to support investment is still much higher than the carbon price in China pilot ETSs. Our results show that other policy measures will be needed to promote low-carbon energy development in China.
Mohamad Y Jaber - One of the best experts on this subject based on the ideXlab platform.
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vendor managed inventory with consignment stock agreement for single vendor single buyer under the Emission Trading Scheme
International Journal of Production Research, 2014Co-Authors: Simone Zanoni, Laura Mazzoldi, Mohamad Y JaberAbstract:This paper presents a joint economic lot size (JELS) model for coordinated inventory replenishment decisions under the vendor-managed inventory (VMI) with consignment stock (CS) agreement and an Emission-Trading Scheme. The paper assumes a single product that flows along a two-level supply chain system, with a single vendor and a single buyer. The total cost of the system is the performance measure, which is the sum of the vendor’s and the buyer’s total costs. The total cost includes the set-up and order costs, inventory holding costs, greenhouse gases (GHG) Emissions tax and penalty costs. A mathematical model is proposed to determine: (1) the vendor’s production lot size quantity; (2) the number of shipments sent by the vendor to the buyer in a cycle; and (3) the production rate that minimises the total cost of the supply chain. Some numerical examples are carried out, as well as comparisons with the traditional JELS model for a classic two-level supply chain. Results show that the performance of the sy...
Rongbing Huang - One of the best experts on this subject based on the ideXlab platform.
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comments on vendor managed inventory with consignment stock agreement for single vendor single buyer under the Emission Trading Scheme
International Journal of Production Research, 2016Co-Authors: Chuanxu Wang, Rongbing HuangAbstract:Zanoni, Mazzoldi, and Jaber [Zanoni, S., L. Mazzoldi, and M. Y., Jaber. 2014. Vendor-managed inventory with consignment stock agreement for single vendor--single buyer under the Emission-Trading Scheme. International Journal of Production Research 52 (1): 20--31] consider a joint economic lot size problem under the vendor-managed inventory with consignment stock agreement and an Emission-Trading Scheme. They show that the total cost of the system is a jointly convex function by simply showing that every element of the Hessian is positive. Noticing this mistake, we analyse the same problem in this technical note. We first provide a closed-form solution when the production rate is given. In order to avoid a complete search over all possible production rates, we then develop an efficient continuous approximation algorithm. Computational experiment shows that the approximation algorithm is effective and efficient.
Lei Zhu - One of the best experts on this subject based on the ideXlab platform.
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modeling the Emission Trading Scheme from an agent based perspective system dynamics emerging from firms coordination among abatement options
European Journal of Operational Research, 2020Co-Authors: Ying Fan, Lei Zhu, Wolfgang EichhammerAbstract:Abstract Though sharing a similar practice form, the Emission Trading Scheme is distinguished from traditional financial markets: firms coordinate three abatement options at the micro level, including allowance Trading, output adjustment, and low-carbon technology adoption. Then, at the macro level, this leads to dynamic interactions among allowance market, output market, and low-carbon technology diffusion. This is the fundamental characteristic of the Emission Trading Scheme, and modeling the dynamics behind is a major difficulty for relevant studies, especially when following complexities are considered: (1) different planning horizons of the three abatement options, (2) heterogeneity among sectors and firms, and (3) details of firms’ production and optional low-carbon technologies. Aiming at this difficulty, we establish an agent-based model for the Emission Trading Scheme, and within a novel multi-level time frame, the fundamental characteristic is reflected and the complexities are considered. Firms’ production and low-carbon technologies are discretely modeled at a process level from a bottom-up perspective, and based on European data, our model is calibrated to cover 5 industrial sectors, 11 Emission-intensive products, 25 production processes, and 52 low-carbon technologies. With this model, the emergence properties and uncertainty of the system are captured, and the non-linear impact of the abatement target is reflected and discussed. We find that, after a certain level, higher target leads to lower allowance price uncertainty but stronger output impact, which is a trade-off for setting the abatement target.
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the impacts of Emission Trading Scheme on china s thermal power industry a pre evaluation from the micro level
Energy & Environment, 2020Co-Authors: Bingxin Zeng, Jun Xie, Xiaobing Zhang, Lei ZhuAbstract:Emission Trading Scheme is known as a cost-effective measure for mitigating CO2 Emissions, and recently, China has started the world's largest carbon Trading system. As the most influential industr...
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buying green or producing green heterogeneous emitters strategic choices under a phased Emission Trading Scheme
Resources Conservation and Recycling, 2018Co-Authors: Lei Zhu, Linju Chen, Ying FanAbstract:Abstract Given the heterogeneous participants and temporal breaks involved in Emission Trading, it is reasonable to find permanent deviation of these markets from a rational expectation equilibrium (REE) status. However, the REE assumption underlies most existing studies, including those focused on the price-deviation phenomenon. They tend to ignore the heterogeneity among regulated firms, as well as the effects of such heterogeneity on Emission Trading, market equilibrium, and market efficiency. For the first time, we abandon the equilibrium assumption in the analysis of Emission-Trading markets and develop an artificial market in which regulated firms are modelled as heterogeneous agents with different allowance demands, abatement costs, technology preferences, and market expectations. Their behaviours are governed by a set of pre-specified rules, rather than directed by the economic optimization goals. The firms in China’s iron and steel sector are selected for simulation. Our results identify some phenomena that can hardly be explained under a REE framework: 1) carbon price significantly fluctuates and deviates from the REE value; 2) regulated firms tend to over invest in Emission-abatement techniques, which further results in allowance over-supply in the markets; 3) while the Emission-Trading Scheme does promote abatement actions among regulated firms, the theoretical arguments for its advantage in mitigation cost-saving seems illusionary. The artificial Emission market establishment here may help policy makers better understand the irrational behaviours and phenomena in real-world Emission Trading, and thereby improve the design of Emission- Trading Schemes.
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can an Emission Trading Scheme promote the withdrawal of outdated capacity in energy intensive sectors a case study on china s iron and steel industry
Energy Economics, 2017Co-Authors: Lei Zhu, Xiaobing Zhang, Xu Wang, Jianxin GuoAbstract:Outdated capacity and substantial potential for energy conservation are the two main features of energy-intensive sectors in developing countries. Such countries also seek to implement market-based options to further control domestic carbon Emissions as well as to promote the withdrawal of outdated capacity and upgrade production level. This paper presents a quantitative assessment of the Emission Trading Scheme (ETS) for China's iron and steel industry. The diverse array of normal and outdated capacities was modeled in a two-country, three-good partial equilibrium model. Simulation results show that the abatement potential can be underestimated if the energy-saving effects that result from Emission abatement are not considered. In the scenario analysis, we demonstrated that the free allocation of allowances can cause a competitiveness distortion among domestic normal and outdated capacities. Given the government's intention to promote outdated capacity withdrawal and production-level upgrading, an output-based allocation approach is strongly suggested for China's iron and steel sector.
Zhijie Jia - One of the best experts on this subject based on the ideXlab platform.
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is Emission Trading Scheme an opportunity for renewable energy in china a perspective of ets revenue redistributions
Applied Energy, 2020Co-Authors: Boqiang Lin, Zhijie JiaAbstract:Emission Trading Scheme (ETS) and renewable energy generation are Emission reduction methods in most countries in the world. However, few studies have focused on the impact of ETS on renewable energy. The question is, can carbon Trading promote renewable energy generation? This paper first analyzes different distribution strategies of ETS revenue by applying dynamic recursive computable general equilibrium model with multi-sectors. Practical scenarios and better options of distribution of ETS revenue by a comprehensive evaluation based on entropy weight method are proposed. The results show that ETS with no subsidy to renewable will reduce the demand for energy, increase the cost of renewable energy sources and decrease the generation. ETS will be the spring of renewable energy generation when most of the revenue is used for all kinds of renewable energy sources, instead of some of them. The growth of renewable energy generation is also substantial. It is necessary that a small portion of ETS revenue should be used to subsidize residents to reduce the gap between the rich and the poor. If this income is used for government investment and consumption, it will also help to mitigate economic losses, which is caused by the direction of investment by the Chinese government.
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what are the main factors affecting carbon price in Emission Trading Scheme a case study in china
Science of The Total Environment, 2019Co-Authors: Boqiang Lin, Zhijie JiaAbstract:Abstract Emission Trading Scheme (ETS) has the potential to influence energy consumption, environmental quality and economy directly and ETS price is the key of ETS market. On December 27, 2017, China's carbon Trading market was officially launched, which may be the largest platform of ETS in the world. Therefore, this paper seeks to assess the influencing factors of Emission Trading price (industry coverage, the annual decline factor, and free allowance rate) and analyzes the impact mechanism in detail by applying computable general equilibrium model. The results show that ETS price and Emission reduction have a significant positive correlation; key factors can impact the price significantly. Fewer industries, higher annual decline factor, and higher free allowance rate will push ETS price up. The paper also found that ETS prices are unpredictable when the mechanism is not yet fully determined. It further, argues that ETS prices are unpredictable when the mechanism is not yet fully determined because of the high relationship between ETS price and the mechanism of ETS. These findings will assist policymakers to build a healthy ETS market. The important implication is that we can adjust the market price by adjusting these mechanisms.
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the impact of Emission Trading Scheme ets and the choice of coverage industry in ets a case study in china
Applied Energy, 2017Co-Authors: Boqiang Lin, Zhijie JiaAbstract:Emission Trading Scheme (ETS) is one of the most effective measures of Emission reduction. However, few literatures have focused on the impact of the industry coverage in ETS. This paper constructs a recursive dynamic Computable General Equilibrium (CGE) model to simulate the choice of the coverage industries in China’s national ETS in 2017, and explore the impacts of ETS and the most suitable coverage industry for China. The results show that CO2 Emission will reach its peak and stabilize by 2030 to meet the goal of “Enhanced Actions on Climate Change: China's Intended Nationally Determined Contributions”. The cumulative CO2 Emission will reduce to 12.05 Bt-CO2 in ETS market during 2017–2030. Moreover, commodity prices will increase from 0.12 to 1.64% in different coverage scenarios. Carbon price can be guaranteed within a reasonable range if the rational choice of the Carbon Rights (CR) suppliers and demanders in ETS market is made by the government. This paper suggests that the industry covered in China’s ETS could imitate the patterns of EU Emissions Trading System (period I and period II) and Midwest Greenhouse Gas Reduction Accord in the U.S., or seek another option to balance the demand and supply of CR in ETS market.