The Experts below are selected from a list of 360 Experts worldwide ranked by ideXlab platform
Xiliang Zhang - One of the best experts on this subject based on the ideXlab platform.
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Emissions Trading systems for global low carbon energy and economic transformation
Applied Energy, 2020Co-Authors: Xiliang Zhang, Andreas Loschel, Joanna I Lewis, Da Zhang, Jinyue YanAbstract:Abstract Emissions Trading systems have been increasingly adopted by jurisdictions across the globe to facilitate the low carbon energy and economic transformation. Serving as an instrument to price greenhouse gas Emissions generated in a variety of economic activities, Emissions Trading systems are reshaping producer behavior, consumer demand, and the future growth of the economy. Compared to command-and-control regulations or carbon taxes, Emissions Trading systems possess some unique features. First, if not auctioned, the allowance allocation to producers greatly affects the competitiveness of firms and hence the political acceptance of carbon pricing. Second, Emissions Trading systems allow potential linking of allowance markets in different jurisdictions, within the same country or internationally. Designs of linking could significantly change the overall policy efficiency and its distributional effects. Third, carbon prices that emerge from the Emissions Trading systems naturally exhibit volatility. Understanding and predicting this price volatility is crucial for market players in making production and investment decisions. Studying behaviors of producers and consumers at both the micro and macro level is of crucial importance. This paper introduces the special issue “Emissions Trading systems for global low carbon energy and economic transformation,” summarizes key findings from the papers selected as well as some recent studies, and provides directions for future research.
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The role of multi-region integrated Emissions Trading scheme: A computable general equilibrium analysis☆
Applied Energy, 2016Co-Authors: Xu Zhang, Xiliang ZhangAbstract:Globally, Emissions Trading scheme (ETS) as a cost-effective method to facilitate Emissions abatement is raising more and more concerns. Moreover, according to the prevailing goal to reach a global agreement for climate mitigation, integrating Emissions Trading schemes has emerged as a prominent international cooperation option. This paper implements different scenario analysis and simulates the establishing of a conceivable multi-region integrated Emissions Trading scheme with China, U.S., Europe, Australia, Japan and South Korea included by utilizing a computable general equilibrium model; specifically, the economic and energy impacts on China in context of multi-region integrated ETS are explicitly investigated. Results indicate that the integration of Emissions Trading schemes would optimize the allocation of Emissions permit and yield economic welfare gains for permits importing countries. Countries with higher abatement cost like U.S., Japan and South Korea would reduce the national GDP loss by 0.16%, 1.33% and 1.42%, respectively. Furthermore, the integration of Emissions Trading scheme also results in the redistribution of clean energy in participating countries. For China, joining the multi-region integrated ETS would facilitate the development of clean energy, the proportion of which climbs up by 33.7% in MR scenario compared with BAU scenario. In addition, it is worth noting that the multi-region integrated ETS would have significant impacts on the role each region plays in international trade, leading to 11% decline of net export for China in MR scenario compared with SR scenario.
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Emissions Trading in china progress and prospects
Energy Policy, 2014Co-Authors: Da Zhang, Valerie J Karplus, Cyril Cassisa, Xiliang ZhangAbstract:To control rising energy use and CO 2 Emissions, China's leadership has enacted energy and CO 2 intensity targets as part of the Twelfth Five-Year Plan (the Twelfth FYP, 2011‐2015). Both to support achievement of these targets and to lay the foundation for a future national market-based climate policy, at the end of 2011, China's government selected seven areas to establish pilot Emissions Trading systems (ETS). In this paper, we provide a comprehensive overview of current status of China's seven ETS pilots. Pilots differ in the extent of sectoral coverage, the size threshold for qualifying installations, and other design features that reflect diverse settings and priorities. By comparing the development of the ETS pilots, we identify issues that have emerged in the design process, and outline important next steps for the development of a national ETS.
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review of carbon Emissions Trading pilots in china
Energy & Environment, 2014Co-Authors: Maosheng Duan, Tao Pang, Xiliang ZhangAbstract:China's carbon Emissions Trading pilot schemes have already made significant progress, with five out of the seven pilot systems having started operation by the end of 2013. The experience in establishing and operating the pilot schemes will be valuable to the establishment of China's unified national Emissions Trading system in the near future. Design features of the five pilots are analyzed and compared, based on officially published documents. Aspects discussed include the establishment of the Emissions cap, sector coverage, allowance allocation, data basis, compliance rules, monitoring/reporting/verification (MRV) mechanism, market intervention, offset mechanism, stakeholder consultations and legal basis. These systems are somewhat similar in cap setting, MRV mechanism and offset mechanism, but quite different in allocation approaches and market intervention. The schemes differ as well from existing international schemes as for example the European Emission Trading Scheme (EU ETS). Reasons for the diff...
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review of carbon Emissions Trading pilots in china
Energy & Environment, 2014Co-Authors: Maosheng Duan, Tao Pang, Xiliang ZhangAbstract:China's carbon Emissions Trading pilot schemes have already made significant progress, with five out of the seven pilot systems having started operation by the end of 2013. The experience in establishing and operating the pilot schemes will be valuable to the establishment of China's unified national Emissions Trading system in the near future. Design features of the five pilots are analyzed and compared, based on officially published documents. Aspects discussed include the establishment of the Emissions cap, sector coverage, allowance allocation, data basis, compliance rules, monitoring/reporting/verification (MRV) mechanism, market intervention, offset mechanism, stakeholder consultations and legal basis. These systems are somewhat similar in cap setting, MRV mechanism and offset mechanism, but quite different in allocation approaches and market intervention. The schemes differ as well from existing international schemes as for example the European Emission Trading Scheme (EU ETS). Reasons for the different designs are briefly analyzed in a comparative manner.
Ottmar Edenhofer - One of the best experts on this subject based on the ideXlab platform.
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a framework for assessing the performance of cap and trade systems insights from the european union Emissions Trading system
Review of Environmental Economics and Policy, 2018Co-Authors: Sabine Fuss, Christian Flachsland, Ottmar Edenhofer, Nicolas Koch, Ulrike Kornek, Brigitte KnopfAbstract:AbstractThe performance of the European Union (EU) Emissions Trading System (ETS) and other cap-and-trade schemes has been under scrutiny because of their inability to create a stable price for gre...
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a framework for assessing the performance of cap and trade systems insights from the european union Emissions Trading system
Review of Environmental Economics and Policy, 2018Co-Authors: Sabine Fuss, Christian Flachsland, Ottmar Edenhofer, Nicolas Koch, Ulrike Kornek, Brigitte KnopfAbstract:The performance of the European Union (EU) Emissions Trading System (ETS) and other cap-and-trade schemes has been under scrutiny because of their inability to create a stable price for greenhouse gas Emissions. This article seeks to inform the often confusing debate about the economic performance of cap-and-trade systems over time, with a focus on the EU ETS. Based on a simple intertemporal framework of Emissions Trading and a review of the literature, we show that different frameworks and notions of efficiency result in both different assessments of performance and different recommended strategies for improving performance. More specifically, we argue that if cap-and-trade systems have temporal flexibility (i.e., they include banking and borrowing of Emissions allowances), it can be highly misleading to base the economic assessment on short-term efficiency. We seek to draw attention to the concept of long-term economic performance, which takes into account the intertemporal nature of Emissions Trading systems. In particular, we identify market and government distortions (e.g., myopia, lack of policy credibility, excessive discounting) that may depress allowance prices and hamper intertemporal efficiency. We then examine whether the recently adopted Market Stability Reserve and the alternative price collar are likely to address these distortions.
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global Trading versus linking architectures for international Emissions Trading
Energy Policy, 2009Co-Authors: Christian Flachsland, Robert Marschinski, Ottmar EdenhoferAbstract:Abstract International Emissions Trading is widely seen as an indispensable policy pillar of climate change mitigation [Stern, N., 2007. The Economics of Climate Change. The Stern Review. Cambridge University Press, New York]. This article analyzes five different types of Trading architectures, classified into two top–down (UNFCCC driven) and three bottom–up (driven by individual countries or regions) approaches. The two types of approaches are characterized by a trade-off between environmental effectiveness and political feasibility, respectively, whereas their relative cost-effectiveness depends on implementation details. Bottom–up architectures constitute imperfect substitutes for top–down architectures in terms of environmental effectiveness, and thus remain mere fallback options. However, especially the ‘formal linking’ architecture can act as complement in terms of cost-effectiveness.
Zhimin Huang - One of the best experts on this subject based on the ideXlab platform.
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potential gains from carbon Emissions Trading in china a dea based estimation on abatement cost savings
Omega-international Journal of Management Science, 2016Co-Authors: Yiming Wei, Zhimin HuangAbstract:China has recently launched its pilot carbon Emissions Trading markets. Theoretically, heterogeneity in abatement cost determines the efficiency advantage of market based programs over command and control policies on carbon Emissions. This study tries to answer the question that what will be the abatement cost savings or GDP loss recoveries from carbon Emissions Trading in China from the perspective of estimating the potential gains from carbon Emissions Trading. A DEA based optimization model is employed in this study to estimate the potential gains from implementing two carbon Emissions Trading schemes compared to carbon Emissions command and control scheme in China. These two schemes are spatial tradable carbon Emissions permit scheme and spatial–temporal tradable carbon Emissions permit scheme. The associated three types of potential gains, which are defined as the potential increases on GDP outputs through eliminating technical inefficiency, eliminating suboptimal spatial allocation of carbon Emissions permit, and eliminating both suboptimal spatial and temporal allocation of carbon Emissions permit, are estimated by an ex post analysis for China and its 30 provinces over 2006-2010. Substantial abatement cost savings and considerable carbon Emissions reduction potentials are identified in this study which provide one argument for implementing a market based policy instrument instead of a command and control policy instrument on carbon Emissions control in China.
Zhongxiang Zhang - One of the best experts on this subject based on the ideXlab platform.
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carbon Emissions Trading in china the evolution from pilots to a nationwide scheme
Climate Policy, 2015Co-Authors: Zhongxiang ZhangAbstract:The Chinese central government has approved seven pilot carbon Trading schemes. These pilot regions have been deliberately selected to be at varying stages of development and are given considerable leeway to design their own schemes. These schemes have features in common, but vary considerably in their approach to issues such as the coverage of sectors, allocation of allowances, price uncertainty and market stabilisation, potential market power of dominated players, use of offsets, and enforcement and compliance. Our study finds that educating the covered entities, strictly enforcing compliance rules, ascribing allowances as financial assets and defining their valid duration, and including non-compliance in the credit record of non-complying entities are crucial to enabling active participation in carbon Emissions Trading. Moreover, the retrospective examination of the carbon Trading pilots suggests that a national Emissions Trading scheme (ETS) should at least be based on uniform standards for measuring,...
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carbon Emissions Trading in china the evolution from pilots to a nationwide scheme
Climate Change and Sustainable Development, 2015Co-Authors: Zhongxiang ZhangAbstract:The Chinese central government has approved the seven pilot carbon Trading schemes. These seven pilot regions are deliberately selected to be at varying stages of development and are given considerable leeway to design their own schemes. These pilot Trading schemes have features in common, but vary considerably in their approach to issues such as the coverage of sectors, allocation of allowances, price uncertainty and market stabilization, potential market power of dominated players, use of offsets, and enforcement and compliance. This article explains why China opts for Emissions Trading, rather than carbon or environmental taxes at least initially, discusses the key common and varying features of these carbon Trading pilots and their first-year performance, draws the lessons learned, discusses the potential pathways for evolution of regional pilot carbon Trading schemes into a nationwide carbon Trading scheme, and raises fundamental issues that must be addressed in order to make such an Emissions Trading scheme to work reliably and effectively and with an increasingly expanded coverage and scope.
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greenhouse gas Emissions Trading and the world Trading system
Social Science Research Network, 2001Co-Authors: Zhongxiang ZhangAbstract:This article examines whether a greenhouse gas Emissions Trading scheme has the potential to bring parties into conflict with the WTO provisions in dealing with the initial allocation of permits, non-compliance with Emissions targets, Emissions Trading system enlargement, and trade measures against non-members of an Emissions Trading club, and relates the discussion to joint implementation with developing countries. To our knowledge, this is the first article in a law and economics journal to analyze potential conflicts between an international Emissions Trading scheme and the world trade system.
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greenhouse gas Emissions Trading and the world Trading system
Journal of World Trade, 1998Co-Authors: Zhongxiang ZhangAbstract:This article examines whether a greenhouse gas Emissions Trading scheme has the potential to bring parties into conflict with the WTO provisions in dealing with the initial allocation of permits, non-compliance with Emissions targets, Emissions Trading system enlargement, and trade measures against non-members of an Emissions Trading club, and relates the discussion to joint implementation with developing countries. To our knowledge, this is the first article to analyze potential conflicts between an international Emissions Trading scheme and the world trade system.
Frank Jotzo - One of the best experts on this subject based on the ideXlab platform.
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price floors for Emissions Trading
Energy Policy, 2011Co-Authors: P R Wood, Frank JotzoAbstract:Price floors in greenhouse gas Emissions Trading schemes can guarantee minimum abatement efforts if prices are lower than expected, and they can help manage cost uncertainty, possibly as complements to price ceilings. Provisions for price floors are found in several recent legislative proposals for Emissions Trading. Implementation however has potential pitfalls. Possible mechanisms are government commitments to buy back permits, a reserve price at auction, or an extra fee or tax on acquittal of Emissions permits. Our analysis of these alternatives shows that the fee approach has budgetary advantages and is more compatible with international permit Trading than the alternatives. It can also be used to implement more general hybrid approaches to Emissions pricing.
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price floors for Emissions Trading
Research Papers in Economics, 2009Co-Authors: P R Wood, Frank JotzoAbstract:Price floors in greenhouse gas Emissions Trading schemes can have advantages for technological innovation, price volatility, and management of cost uncertainty, but implementation has potential pitfalls. We argue that the best mechanism for implementing a price floor is to have firms pay an extra fee or tax. This has budgetary advantages and is more compatible with international permit Trading than alternative approaches that dominate the academic and policy debate. The fee approach can also be used to implement more general hybrid approaches to Emissions pricing.