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1 – 10 of over 2000
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Article
Publication date: 1 August 1999

Uwe Schubert and Andreas Zerlauth

The discussion of how to manage air‐quality in a heavily polluted area like Los Angeles (LA), California, in an era of shrinking public budgets and a trend towards…

Abstract

The discussion of how to manage air‐quality in a heavily polluted area like Los Angeles (LA), California, in an era of shrinking public budgets and a trend towards deregulation has led to the introduction of a new environmental policy tool: a tradeable emission permit approach (the so called RECLAIM‐program) to reduce SOx‐ and NO‐emissions from stationary sources was introduced in 1994. This paper is an attempt to analyze and evaluate the first three years of the program, based on the official three year program audit (SCAQMD, 1998) and on a written company survey and personal interviews with experts, as well as administrators active in air quality management in Los Angeles (conducted by the authors between May 1996 and May 1998).

Details

Environmental Management and Health, vol. 10 no. 3
Type: Research Article
ISSN: 0956-6163

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Article
Publication date: 1 April 2002

Richard F. Kosobud, Houston H. Stokes and Carol D. Tallarico

A new financial asset (Allotment Trading Unit or ATU) that allows a firm to pollute was issued to a number of Chicago firms in 2000 as part of a cap‐and‐trade model to…

Abstract

A new financial asset (Allotment Trading Unit or ATU) that allows a firm to pollute was issued to a number of Chicago firms in 2000 as part of a cap‐and‐trade model to reduce emissions in the Chicago area. A model of this market was developed to enable us to: 1.) Estimate equilibrium tradable credit prices and quantities and calculate compliance costs for comparison with traditional environmental regulation; 2.) Estimate the consequences for prices and quantities of introducing changing emitter costs; and 3.) Estimate the impacts on prices and quantities of changing market features such as auctioning tradable credits instead of a free allocation, introducing spatial constraints, and changing the emissions cap. The model's results on the price determination of this new financial asset are of interest to accountants and financial analysts. A dated bankable ATU credit has a one‐year life expectancy, but future tradable credits can be bought or sold for use at the appropriate future date. It is an intangible asset that should be disclosed, measured and valued. The valuation to place on this asset is an important research topic in finance and accounting and various valuation approaches are discussed to handle the short‐term and long‐term price paths.

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Article
Publication date: 9 January 2017

Jui-Chu Lin, Wei-Ming Chen and Ding-Jang Chen

In this paper, the international progress of Nationally Appropriate Mitigation Actions (NAMAs), Intended Nationally Determined Contributions (INDCs), and Nationally…

Abstract

Purpose

In this paper, the international progress of Nationally Appropriate Mitigation Actions (NAMAs), Intended Nationally Determined Contributions (INDCs), and Nationally Determined Contributions (NDCs) under the United Nations Framework Convention on Climate Change are reviewed. The content of Taiwan’s NAMAs and INDCs are also investigated, especially with reference to actions for the electricity sector. To better understand the greenhouse gas (GHG) reduction contribution from the electricity sector, this paper aims to examine challenges and solutions for implementing a carbon trading mechanism in Taiwan’s monopolistic electricity market under the newly passed Greenhouse Gases Emissions Reduction and Management Act (GHG ERMA).

Design/methodology/approach

Carbon reduction strategies for the electricity sector are discussed by examining and explaining Taiwan’s official documents and the law of GHG ERMA.

Findings

This study finds that market mechanisms should be utilized to allocate appropriate costs and incentives for GHG reductions to transform Taiwan into a low-carbon society.

Originality/value

This study identifies strategies for the electricity sector to reduce GHG emissions, especially the operation of a carbon-trading scheme under a non-liberalized electricity market.

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Article
Publication date: 21 October 2019

Praveen Kumar and Mohammad Firoz

The purpose of this paper is to analyse the certified emission reduction (CERs) disclosure and reporting practices followed by Indian firms.

Abstract

Purpose

The purpose of this paper is to analyse the certified emission reduction (CERs) disclosure and reporting practices followed by Indian firms.

Design/methodology/approach

The study is based on all 131 Indian firms who received the CERs under the CDM of UNFCCC. The content analysis is being used to examine the recognition, measurement, presentation and disclosure of CERs within the financial statements.

Findings

The study found that there is generally no uniformity of accounting for CERs. The firms adopted a diversity of accounting practices. More specifically, majority of companies (40.46 per cent) recognised CERs as the other income; a very high non-disclosure rate (91.60 per cent) for valuation of CERs inventories was found as only four companies (3.05 per cent) provided accounting treatment for CERs inventories at lower of cost or net realisable value followed by three companies (2.29 per cent) accounted for these inventories at Net realisable value at the end of the reporting period; similarly, a very high non-disclosure rate (92.36 per cent) for how companies account for expenses incurred in earning these credits was found.

Research limitations/implications

The study will be useful for a wide array of audiences ranging from accounting standard setter to the auditors. The present analysis is based on secondary data, as we examined only annual reports of the sample companies to know how they recognise their earned CERs within the financial statements. So, we did not cover the opinions of various key persons of companies like an accountant, auditors etc. which could be a limitation of this study in validating CERs disclosure practices followed by the Indian firms.

Originality/value

To the best of the author's knowledge, the present study is a first of its kind to analyse the carbon credit disclosure practices in the context of a developing country.

Details

Meditari Accountancy Research, vol. 28 no. 2
Type: Research Article
ISSN: 2049-372X

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Article
Publication date: 24 June 2020

Paul Adjei Kwakwa and Frank Adusah-Poku

Carbon dioxide emission is one of the key causes of global warming and climate change. This study investigates the effects of domestic credit and manufacturing indicators…

Abstract

Purpose

Carbon dioxide emission is one of the key causes of global warming and climate change. This study investigates the effects of domestic credit and manufacturing indicators on the emission of carbon dioxide in South Africa.

Design/methodology/approach

The paper relied on time series data from 1975 to 2014 and employed regression and variance decomposition methods to analyze the data.

Findings

In the long run, manufacturing output increases total carbon emissions and emissions from solid fuel; manufactures trade reduces carbon emissions and domestic credit reduces emissions from the manufacturing industries and construction. The long-run effect of the changing technical characteristics of the manufacturing sector is sensitive to the estimation technique used. In the short run, however, changing technical characteristics of the manufacturing sector affect the level of carbon emissions. Income increases emissions from manufacturing industries and construction and urbanization increases total carbon emissions.

Research limitations/implications

Policymakers have to initiate effective policies to promote energy-efficient technologies among manufacturing firms.

Originality/value

The paper examines the effect of manufacturing on carbon dioxide emissions in South Africa. It also examines the possible effect of manufactures trade on carbon emissions. Moreover, the possible effect of the changing characteristics of the manufacturing sector on carbon emissions is investigated.

Details

Management of Environmental Quality: An International Journal, vol. 31 no. 6
Type: Research Article
ISSN: 1477-7835

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Article
Publication date: 17 May 2011

Kelly A. Stevens, Greg DeAngelo and Shenita Brice

The paper is an excerpt from a more comprehensive study by the Florida Department of Environmental Protection comparing the technical elements of offset projects in…

Abstract

Purpose

The paper is an excerpt from a more comprehensive study by the Florida Department of Environmental Protection comparing the technical elements of offset projects in forestry, agriculture, and waste management, as well as some miscellaneous project types. The authors compare and contrast design elements of three specific offset projects: afforestation/reforestation, manure management, and landfill gas capture. The technical review for each offset project is concluded with a look at the potential applicability for that project in Florida in the context of the protocols evaluated.

Design/methodology/approach

Offset projects that may be employed in Florida are first broken up into comparable design elements specific to the selected offset project type. Focusing on the design elements, a discussion of the similarities and differences among the protocols for each offset project is presented. Each section begins with general findings then moves on to assessments of the detailed design elements. Finally, the project's general applicability to Florida is considered, highlighting specific strengths of particular protocols from the analysis of the design elements.

Findings

Protocols tend to vary from highly specific requirements to a more general set of recommendations. Interestingly, no one program's set of protocols is the most opportunistic for Florida, but rather various protocols may have distinctive strengths depending on the project type.

Originality/value

Many comparative studies of offset protocols evaluate protocols in the context of program‐level policies. This study uniquely values the technical details in the protocols and does not consider policy or program‐level issues.

Details

International Journal of Climate Change Strategies and Management, vol. 3 no. 2
Type: Research Article
ISSN: 1756-8692

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Article
Publication date: 16 July 2021

Xiaoping Xu, Yugang Yu, Guowei Dou and Xiaomei Ruan

The purpose of this paper is to analyze the operational decisions of a manufacturer who produces multiple products and the government's selection of cap-and-trade and…

Abstract

Purpose

The purpose of this paper is to analyze the operational decisions of a manufacturer who produces multiple products and the government's selection of cap-and-trade and carbon tax regulations.

Design/methodology/approach

This paper explores the production decisions of a multi-product manufacturer under cap-and-trade and carbon tax regulations in a cap-dependent carbon trading price setting and compares carbon emission, the manufacturer's profits and social welfare under the two regulations. Game theory and extreme value theory are used to analyze our models.

Findings

First, the authors find that the optimal profit of the manufacturer (the optimal cap) increases and then decreases with the cap (the unit carbon emission of product). Second, if the environmental damage coefficient is moderate, the optimal cap of unit environmental damage coefficient is independent of the product carbon emission or other related product parameters. Ultimately, cap-and-trade regulation always generates more carbon emission than carbon tax regulation. And cap-and-trade regulation (carbon tax regulation) can generate more social welfare if the environmental damage coefficient is low (high), and the social welfare under the two regulations is equal to each other, or otherwise.

Originality/value

This paper contributes the prior literature by considering the inverse relationship of the allocated cap and the carbon trading price and discusses the social welfare under cap-and-trade and carbon tax regulations. Some important and new results are found, which can guide the government's implementation of the two regulations.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

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Article
Publication date: 28 April 2014

Patrick T.I. Lam, Edwin H.W. Chan, Ann T.W. Yu, Wynn C.N. Cam and Jack S. Yu

This paper aims to investigate how unique features of built facilities would affect the application of greenhouse gas (GHG) emissions trading, and to explore what adaptive…

Abstract

Purpose

This paper aims to investigate how unique features of built facilities would affect the application of greenhouse gas (GHG) emissions trading, and to explore what adaptive measures may be taken for emissions trading to be applied to the built environment. Emissions trading is a financial tool to encourage GHG emissions reduction in various industries. As the building sector is responsible for a large amount of GHG emissions, it is valuable to explore the application of emissions trading in built facilities.

Design/methodology/approach

The analysis is based on a comparative study reviewing the current emissions trading schemes (ETSs) in Australia, Japan and the UK covering the building industry, and to evaluate the approaches adopted by the schemes to tackle the problems related to buildings and facilities management.

Findings

The research findings reveal that the small energy savings of individual building units, the large variety of energy-saving technologies and the split incentives and diverse interests of building owners and tenants would be the barriers hindering the development of emissions trading. To overcome these barriers, an ETS should allow its participants to group individual energy savings, lower the complexity of monitoring and reporting approaches and allow owners and tenants to benefit from emissions trading.

Originality/value

This article provides a comprehensive overview of the current emissions trading practices in the built environment. Besides, it raises the attention and consciousness of policymakers to the need that building characteristics and facilities management should be taken into consideration when designing an ETS for the building sector.

Details

Facilities, vol. 32 no. 7/8
Type: Research Article
ISSN: 0263-2772

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Book part
Publication date: 25 September 2012

Krystal Tribbett

Purpose – Emissions trading is often heralded as an efficient approach to environmental regulation. In the mid-90s Communities for a Better Environment (CBE), a Los…

Abstract

Purpose – Emissions trading is often heralded as an efficient approach to environmental regulation. In the mid-90s Communities for a Better Environment (CBE), a Los Angeles-based advocacy organization, raised concerns that emissions trading in the South Coast Air Basin, the most polluted region in Southern California, would result in environmental injustice. The organizations concerns received mixed responses from regulators. Historical analysis is used to assess the clash between emissions trading and environmental justice (EJ).

Methodology/approach – Emissions trading and EJ arose side by side between the 1960s and the 1990s, yet they disagree on how to clean the air. Historical analysis of legal documents, presidential addresses, letters, working papers, reports, and the like offers a better understanding of the development of emissions trading and EJ, and their intersection in environmental policy.

Findings – Emissions trading was grafted onto Clean Air Act policies not inherently designed for their incorporation. As a result, emissions trading came into direct philosophical opposition with EJ as political pressures calling for both economically efficient antiregulatory-ism and environmental equity forced their intersection. Formally, regional and national government accepted EJ as part of law. However, in principle, emissions trading undermined this acceptance. As a result, CBE could not easily win or explicitly lose its battle against emissions trading.

Originality/value of paper – Previous work on the relationship between emissions trading and EJ tend to focus on legal analysis and normative implications of emissions trading. Putting emissions trading and environment justice into historical perspective helps to illuminate larger questions about EJ activism and policy. Also, as California, the United States, and Europe turn to emissions trading to combat not only air pollution but also climate change, important lessons can be learned from the histories and collision of emissions trading and EJ.

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Article
Publication date: 28 May 2019

Praveen Kumar and Mohammad Firoz

The purpose of this paper is to analyze the relationship between Certified Emission Reductions (CERs) information and a firm’s stock prices.

Abstract

Purpose

The purpose of this paper is to analyze the relationship between Certified Emission Reductions (CERs) information and a firm’s stock prices.

Design/methodology/approach

The present study is based on 193 CERs announcements by Indian firms over a 13-year period 2005–2017. The event study methodology is used to examine the impact of CERs announcements on a firm’s share prices.

Findings

The study suggests that the issuance of CERs did not produce any significant abnormal return. More specifically, the outcomes of event study shows that over a two-day event window from the event day to the day after the event (i.e. days 0 to 1), the mean and median of AARs are −0.25 and −0.34 percent, respectively. The abnormal returns on day 1 are not statistically significant as per the t-test. Moreover, the mean and median of abnormal returns after one day (−1) are negative, indicating that investors react negatively to CERs announcements. However, the mean and median of CAARs over both the two-day (i.e. days −1 to 0 and days 0 to +1) and three-day (i.e. days −1 to +1) event windows are positive, but not statistically significant based on the t-test.

Research limitations/implications

The findings of the study are quite comprehensive, relatively used only market-based criteria of a firm’s financial performance, e.g., share price, at times, inhibits generalizing the results.

Originality/value

To the best of the author’s knowledge, the present study is a first of its kind to investigate the relationship between the CERs information and a firm’s stock prices.

Details

Managerial Finance, vol. 45 no. 7
Type: Research Article
ISSN: 0307-4358

Keywords

1 – 10 of over 2000