The Experts below are selected from a list of 360 Experts worldwide ranked by ideXlab platform

Zhimin Huang - One of the best experts on this subject based on the ideXlab platform.

  • opportunity and marginal abatement cost savings from china s pilot carbon emissions Permit Trading system simulating evidence from the industrial sectors
    Journal of Environmental Management, 2020
    Co-Authors: Yujiao Xian, Yiming Wei, Ke Wang, Zhimin Huang
    Abstract:

    China has launched pilot carbon emissions Permit Trading schemes (ETS) in seven regions since 2013/2014 and has established a nationwide ETS in the power industry by the end of 2017. Recent literature has evaluated China's seven pilot regions on design aspects of the ETS, and yet little is known about the potential recovery of economic output loss through introducing the ETS. This study considers the recovery of industrial value added loss and thus measures the abatement cost savings from Trading to evaluate the necessity and feasibility of China's pilot ETSs. The analysis develops a parametric and nonparametric combined technique to calculate the opportunity abatement cost savings (i.e., potential abatement cost savings and unrealized abatement cost savings) and marginal abatement cost savings (i.e., changes on carbon shadow prices) in China's pilot ETSs during 2011-2015. It additionally provides an estimation of potential carbon emissions reduction from ETS. Both cross-industrial Trading and intertemporal Trading are considered, and three simulations, defined as no Trading, cross-industrial Trading, and cross-industrial and intertemporal Trading, are conducted. We found that, i) 1-16% potential abatement cost savings and 2-12% unrealized abatement cost savings would be identified in China's pilot ETS regions. ii) 0.5-33% and 1.6-25% carbon emissions reduction potential would be realized respectively by introducing ETS and eliminating the operational inefficiency of the ETS. iii) Marginal abatement cost savings would both exist in almost all regions if the ETS were implemented and if the ETS were fully operational.

  • would china s power industry benefit from nationwide carbon emission Permit Trading an optimization model based ex post analysis on abatement cost savings
    Applied Energy, 2019
    Co-Authors: Yiming Wei, Zhimin Huang
    Abstract:

    Abstract The nationwide carbon emission Permit Trading scheme has been launched in China’s power industry sector by the end of 2017. The estimation of abatement costs savings from carbon emission Permit Trading can provide valuable guidelines and support to environmental regulatory policies on controlling CO2 emissions. By applying a parametric and nonparametric integrating approach and conducting an ex post analysis in two scenarios (i.e., with and without carbon emission Permit Trading simulation), this study provides a simulative calculation of the opportunity abatement cost savings and the marginal abatement cost savings from carbon emission Permit Trading in China’s power industry of 30 provinces. The simulation results show that: (i) A 13% annually average potential on the opportunity abatement cost savings (i.e., 1024 billion yuan) would be realized if introducing a nationwide emission Permit Trading system in China’s power industry during 2011–2015. (ii) Meanwhile, the marginal abatement cost savings that range from 39 to 47 yuan/ton would be realized through emission Permit Trading. (iii) Provinces of Xinjiang and Henan show the largest absolute opportunity abatement cost savings from Trading, while Qinghai province shows the highest percentage increase in opportunity abatement cost savings. (iv) Although there is significant difference in the marginal abatement cost among provinces, the marginal abatement cost savings from Trading would occur for most China’s provinces.

Ke Wang - One of the best experts on this subject based on the ideXlab platform.

  • capacity Permit Trading scheme economic welfare and energy insecurity case study of coal industry in china
    The Singapore Economic Review, 2021
    Co-Authors: Xunpeng Shi, Ke Wang, Yifan Shen, Yanfang Zhang
    Abstract:

    Cutting the overcapacity in coal industry is a current critical issue in China and is a matter for the world. However, inappropriate capacity cut policies may induce huge fluctuations of energy pri...

  • opportunity and marginal abatement cost savings from china s pilot carbon emissions Permit Trading system simulating evidence from the industrial sectors
    Journal of Environmental Management, 2020
    Co-Authors: Yujiao Xian, Yiming Wei, Ke Wang, Zhimin Huang
    Abstract:

    China has launched pilot carbon emissions Permit Trading schemes (ETS) in seven regions since 2013/2014 and has established a nationwide ETS in the power industry by the end of 2017. Recent literature has evaluated China's seven pilot regions on design aspects of the ETS, and yet little is known about the potential recovery of economic output loss through introducing the ETS. This study considers the recovery of industrial value added loss and thus measures the abatement cost savings from Trading to evaluate the necessity and feasibility of China's pilot ETSs. The analysis develops a parametric and nonparametric combined technique to calculate the opportunity abatement cost savings (i.e., potential abatement cost savings and unrealized abatement cost savings) and marginal abatement cost savings (i.e., changes on carbon shadow prices) in China's pilot ETSs during 2011-2015. It additionally provides an estimation of potential carbon emissions reduction from ETS. Both cross-industrial Trading and intertemporal Trading are considered, and three simulations, defined as no Trading, cross-industrial Trading, and cross-industrial and intertemporal Trading, are conducted. We found that, i) 1-16% potential abatement cost savings and 2-12% unrealized abatement cost savings would be identified in China's pilot ETS regions. ii) 0.5-33% and 1.6-25% carbon emissions reduction potential would be realized respectively by introducing ETS and eliminating the operational inefficiency of the ETS. iii) Marginal abatement cost savings would both exist in almost all regions if the ETS were implemented and if the ETS were fully operational.

  • a Permit Trading scheme for facilitating energy transition a case study of coal capacity control in china
    Journal of Cleaner Production, 2020
    Co-Authors: Ke Wang, Xunpeng Shi, Yifan Shen, Yu Sheng, Yanfang Zhang
    Abstract:

    Abstract Restriction the production and consumption of fossil fuels is a necessary part in the energy transition. How to implement such restriction effectively is an issue that is of public interest to both academia and policy makers. Using production data of more than 1100 coal mines in China, we show that a capacity Permit Trading system originated from cap and trade practice could help the coal industry to save more than 30 percent of inputs and increase income by 26 percent. The results also demonstrate that the Permit Trading will lead to Pareto improvement for all participating provinces when compared with the capacity control administratively, and the accumulative welfare will increase as the Trading zone is enlarged. The study suggests that adopting the Permit Trading schemes for capping policies is economically beneficial and politically feasible.

  • a Permit Trading scheme for capping issues in energy transition case study of coal capacity control in china
    Social Science Research Network, 2018
    Co-Authors: Xunpeng Shi, Ke Wang, Yifan Shen, Yu Sheng, Yanfang Zhang
    Abstract:

    The energy transition often includes capping policies on fossil fuel production or consumption but little attention in the literature has been paid to introduce a Permit Trading scheme to minimize the cost of such a cap. In this paper, we propose a Permit Trading mechanism for capping issues and apply this proposal to studying China’s coal capacity control. Theoretically, we argue that the benefits of such a Trading scheme comes from rescuing high-efficiency mines being administratively closed and relocation of capacity from lower to higher efficiency mines. Using a non-parametric frontier method and more than 1100 firm-level data merged from financial data and capacity data, we estimated the benefits from a capacity Permit Trading could lead to more than 30% input saving and additional 26% income boost. The results also demonstrate that the economic benefits rise in a larger Trading zone and the Permit Trading is a Pareto improvement for all participated province when compared with command and control policy. The study suggests that adopting Permit Trading schemes for capping policies is economically beneficial and politically feasible, and a large Trading zone is preferred to a small one. Such Permit concept could be used to facilitate energy transition in other countries.

  • emissions Trading and abatement cost savings an estimation of china s thermal power industry
    Renewable & Sustainable Energy Reviews, 2016
    Co-Authors: Ke Wang, Yiming Wei, Xian Zhang, Bin Wang
    Abstract:

    This study evaluates the efficiency advantage of a market-based emission Permit Trading policy instrument over a command and control policy instrument in the case of China's thermal power industry. We estimate the unrealized gains achievable through emission Permit Trading with an optimization frontier analysis. These unrealized gains include potential recoveries of electricity generation through eliminating spatial and temporal regulatory rigidity on emission Permit Trading. The results of an ex post estimation during 2006 and 2010 indicate a potential gain of 8.48% increase in electricity generation if both the intra- and inter-period regulatory rigidities on CO2 emission Permits Trading had been eliminated. In addition, if the Permit Trading systems for three air pollutions, CO2, SO2, and NOx, had been completely integrated, a positive net synergy effect of 1.43% increase in electricity generation could have been secured. The unrealized gains identified in this study provide supports for establishing a nationwide emission Permit Trading system in China.

Xunpeng Shi - One of the best experts on this subject based on the ideXlab platform.

  • a market instrument to achieve carbon neutrality is china s energy consumption Permit Trading scheme effective
    Applied Energy, 2021
    Co-Authors: Yanfang Zhang, Xunpeng Shi, Siyuan Guo, Xiangyan Qian, Rui Nie
    Abstract:

    Abstract The Chinese government implemented the energy-consumption Permit Trading scheme (ECPTS) pilot program in 2016, in order to achieve energy saving and carbon reduction. Based on the PSM-DID model, we attempt to test the effects of the ECPTS on energy consumption and energy intensity. With a counterfactual simulation, this paper also evaluates the potential gains and different mechanisms of this policy. The results show that, under the constraints of the established resources and policy efficiency, there is a positive relationship between the ECPTS and low-carbon economic transformation; the implementation of the above policy in the pilot provinces brought about an average energy saving of 43 Mtce during the period of 2016–2019. However, the potential gains of this policy need to be further increased to meet China’s energy control targets. Additionally, a complete mediating effect of the energy structure indicates that the impact of the ECPTS on energy consumption and energy intensity depends significantly on energy structure adjustments. Finally, this paper highlights the key policy implications associated with the empirical results.

  • capacity Permit Trading scheme economic welfare and energy insecurity case study of coal industry in china
    The Singapore Economic Review, 2021
    Co-Authors: Xunpeng Shi, Ke Wang, Yifan Shen, Yanfang Zhang
    Abstract:

    Cutting the overcapacity in coal industry is a current critical issue in China and is a matter for the world. However, inappropriate capacity cut policies may induce huge fluctuations of energy pri...

  • a Permit Trading scheme for facilitating energy transition a case study of coal capacity control in china
    Journal of Cleaner Production, 2020
    Co-Authors: Ke Wang, Xunpeng Shi, Yifan Shen, Yu Sheng, Yanfang Zhang
    Abstract:

    Abstract Restriction the production and consumption of fossil fuels is a necessary part in the energy transition. How to implement such restriction effectively is an issue that is of public interest to both academia and policy makers. Using production data of more than 1100 coal mines in China, we show that a capacity Permit Trading system originated from cap and trade practice could help the coal industry to save more than 30 percent of inputs and increase income by 26 percent. The results also demonstrate that the Permit Trading will lead to Pareto improvement for all participating provinces when compared with the capacity control administratively, and the accumulative welfare will increase as the Trading zone is enlarged. The study suggests that adopting the Permit Trading schemes for capping policies is economically beneficial and politically feasible.

  • a Permit Trading scheme for capping issues in energy transition case study of coal capacity control in china
    Social Science Research Network, 2018
    Co-Authors: Xunpeng Shi, Ke Wang, Yifan Shen, Yu Sheng, Yanfang Zhang
    Abstract:

    The energy transition often includes capping policies on fossil fuel production or consumption but little attention in the literature has been paid to introduce a Permit Trading scheme to minimize the cost of such a cap. In this paper, we propose a Permit Trading mechanism for capping issues and apply this proposal to studying China’s coal capacity control. Theoretically, we argue that the benefits of such a Trading scheme comes from rescuing high-efficiency mines being administratively closed and relocation of capacity from lower to higher efficiency mines. Using a non-parametric frontier method and more than 1100 firm-level data merged from financial data and capacity data, we estimated the benefits from a capacity Permit Trading could lead to more than 30% input saving and additional 26% income boost. The results also demonstrate that the economic benefits rise in a larger Trading zone and the Permit Trading is a Pareto improvement for all participated province when compared with command and control policy. The study suggests that adopting Permit Trading schemes for capping policies is economically beneficial and politically feasible, and a large Trading zone is preferred to a small one. Such Permit concept could be used to facilitate energy transition in other countries.

  • can personal gasoline Permit Trading be effective an investigation into Permit demand
    Journal of Cleaner Production, 2017
    Co-Authors: Jin Fan, Xunpeng Shi, Dingtao Zhao
    Abstract:

    This study proposes a personal gasoline Permit Trading scheme to limit the total gasoline consumption, thus reducing its environmental impact. We studied the effectiveness of this scheme by analyzing the Permit demand of a gasoline-driven vehicle in transportation sector. A general utility optimization model is formulated and a Cobb-Douglas utility function is further assumed to analyze the response of Permit demand to its price changes with the Slutsky decomposition of price effects. The results, when defined in economic terms, indicate that the Permit demand of consumers in higher income groups are negatively related to Permit price; Permit demand are also negatively related to Permit price for consumers in medium income groups, but with positive income effect; and the direct relationship between Permit demand of lower income groups and the price is defined as a Giffen-good effect. That is, for those low income groups, when the Permit price rises their demand for Permits would also increase. Then US and Singapore household expenditure data are used to show comparable results of a pilot personal gasoline Permit Trading scheme. Further, some regulations on critical parameters, such as Permit allocation and Permit prices in the policy design are proposed to make the scheme feasible in different income groups. Based on these results, implications, limitation and suggestions for future study are discussed.

Yanfang Zhang - One of the best experts on this subject based on the ideXlab platform.

  • a market instrument to achieve carbon neutrality is china s energy consumption Permit Trading scheme effective
    Applied Energy, 2021
    Co-Authors: Yanfang Zhang, Xunpeng Shi, Siyuan Guo, Xiangyan Qian, Rui Nie
    Abstract:

    Abstract The Chinese government implemented the energy-consumption Permit Trading scheme (ECPTS) pilot program in 2016, in order to achieve energy saving and carbon reduction. Based on the PSM-DID model, we attempt to test the effects of the ECPTS on energy consumption and energy intensity. With a counterfactual simulation, this paper also evaluates the potential gains and different mechanisms of this policy. The results show that, under the constraints of the established resources and policy efficiency, there is a positive relationship between the ECPTS and low-carbon economic transformation; the implementation of the above policy in the pilot provinces brought about an average energy saving of 43 Mtce during the period of 2016–2019. However, the potential gains of this policy need to be further increased to meet China’s energy control targets. Additionally, a complete mediating effect of the energy structure indicates that the impact of the ECPTS on energy consumption and energy intensity depends significantly on energy structure adjustments. Finally, this paper highlights the key policy implications associated with the empirical results.

  • capacity Permit Trading scheme economic welfare and energy insecurity case study of coal industry in china
    The Singapore Economic Review, 2021
    Co-Authors: Xunpeng Shi, Ke Wang, Yifan Shen, Yanfang Zhang
    Abstract:

    Cutting the overcapacity in coal industry is a current critical issue in China and is a matter for the world. However, inappropriate capacity cut policies may induce huge fluctuations of energy pri...

  • a Permit Trading scheme for facilitating energy transition a case study of coal capacity control in china
    Journal of Cleaner Production, 2020
    Co-Authors: Ke Wang, Xunpeng Shi, Yifan Shen, Yu Sheng, Yanfang Zhang
    Abstract:

    Abstract Restriction the production and consumption of fossil fuels is a necessary part in the energy transition. How to implement such restriction effectively is an issue that is of public interest to both academia and policy makers. Using production data of more than 1100 coal mines in China, we show that a capacity Permit Trading system originated from cap and trade practice could help the coal industry to save more than 30 percent of inputs and increase income by 26 percent. The results also demonstrate that the Permit Trading will lead to Pareto improvement for all participating provinces when compared with the capacity control administratively, and the accumulative welfare will increase as the Trading zone is enlarged. The study suggests that adopting the Permit Trading schemes for capping policies is economically beneficial and politically feasible.

  • a Permit Trading scheme for capping issues in energy transition case study of coal capacity control in china
    Social Science Research Network, 2018
    Co-Authors: Xunpeng Shi, Ke Wang, Yifan Shen, Yu Sheng, Yanfang Zhang
    Abstract:

    The energy transition often includes capping policies on fossil fuel production or consumption but little attention in the literature has been paid to introduce a Permit Trading scheme to minimize the cost of such a cap. In this paper, we propose a Permit Trading mechanism for capping issues and apply this proposal to studying China’s coal capacity control. Theoretically, we argue that the benefits of such a Trading scheme comes from rescuing high-efficiency mines being administratively closed and relocation of capacity from lower to higher efficiency mines. Using a non-parametric frontier method and more than 1100 firm-level data merged from financial data and capacity data, we estimated the benefits from a capacity Permit Trading could lead to more than 30% input saving and additional 26% income boost. The results also demonstrate that the economic benefits rise in a larger Trading zone and the Permit Trading is a Pareto improvement for all participated province when compared with command and control policy. The study suggests that adopting Permit Trading schemes for capping policies is economically beneficial and politically feasible, and a large Trading zone is preferred to a small one. Such Permit concept could be used to facilitate energy transition in other countries.

Jinhua Zhao - One of the best experts on this subject based on the ideXlab platform.

  • alternative intertemporal Permit Trading regimes with stochastic abatement costs
    Resource and Energy Economics, 2006
    Co-Authors: Hongli Feng, Jinhua Zhao
    Abstract:

    We examine the social efficiency of alternative intertemporal Permit Trading regimes. The role of uncertainty and information asymmetry is discussed. For banking to be welfare improving, uncertainty itself does not matter, while information asymmetry does. Three effects of banking are identified: externality effect, information effect, and total Permit effect. In the absence of total Permit effect, banking is welfare improving if information effect is positive and dominates the externality effect. The relative efficiency of banking regimes with different intertemporal Trading ratios is affected by the slope of the benefit and damage functions and the covariance of the shocks.

  • irreversible abatement investment under cost uncertainties tradable emission Permits and emissions charges
    Journal of Public Economics, 2003
    Co-Authors: Jinhua Zhao
    Abstract:

    A major concern with TEPs is that stochastic Permit prices may reduce firm incentive to invest in abatement capital or technologies relative to other policies such as a fixed emissions charge. However, under efficient Permit Trading, the price uncertainty is caused by abatement cost uncertainties which affect investment under both Permit and charge policies. We develop a rational expectations general equilibrium model of Permit Trading and irreversible abatement investment to show how cost uncertainty affects investment. Differences between the effects of uncertainties under the two policies can be decomposed into a general equilibrium effect and a price-vs-quantity effect. After controlling for the assumption that the random variables enter the abatement cost function linearly, we find that uncertainties reduce both effects. In particular, firms' investment incentive decreases in cost uncertainties, but more so under emissions charges than under Permits. Therefore, tradable Permits in fact help maintain firms' investment incentive under uncertainty.

  • alternative intertemporal Permit Trading regimes with stochastic abatement costs
    Research Papers in Economics, 2002
    Co-Authors: Hongli Feng, Jinhua Zhao
    Abstract:

    We examine the social efficiency of alternative intertemporal Permit Trading regimes. Banking with a 1-to-1 ratio and with a non-unitary intertemporal Trading ratio (ITR) are compared with each other and with the no-banking Permit Trading regime. The more industry-wide shocks vary, and/or the more they are negatively correlated across time, the more efficient is a bankable Permit regime. When the slope of the benefit function is greater than the slope of the damage function, banking with ITR=1+r is more efficient than a no-banking regime. Banking with ITR=1 can be more efficient than a no-banking regime. However, whether ITR=1 or ITR=1+r is better depends on the covariance structure of the shocks and the benefit and damage functions.

  • irreversible abatement investment under cost uncertainties tradable emission Permits and emissions charges
    American Journal of Agricultural Economics, 2000
    Co-Authors: Jinhua Zhao
    Abstract:

    A major concern with tradable emission Permits is that stochastic Permit prices may reduce a firm's incentive to invest in abatement capital or technologies relative to other policies such as a fixed emissions charge. However, under efficient Permit Trading, the Permit price uncertainty is caused by abatement cost uncertainties which affect investment under both Permit and charge policies. We develop a rational expectations general equilibrium model of Permit Trading and irreversible abatement investment to show how cost uncertainties affect investment under Permits. We compare the resulting investment incentive with that under charges. After controlling for the assumption that random shocks affect the abatement cost linearly, we find that firms' investment incentive decreases in cost uncertainties, but more so under emissions charges than under Permits. Therefore, tradable Permits in fact may help maintain firms' investment incentive under uncertainty.