Search results

To cope with climate change and achieve the dual carbon goal, China has actively promoted the implementation of carbon trading pilot policy, among which the power industry plays an important role in China’s carbon emission reduction work. The purpose of this paper is to study the influence of carbon trading policy on the energy efficiency of power industry and achieve the comprehensive goal of carbon emission reduction, carbon peak and carbon neutralization.

This paper constructs the difference-in-differences model based on 2012–2019 provincial data to study the impact of carbon trading policy on energy efficiency in the power industry and its effect path. Heterogeneity analysis was conducted to compare the effects of carbon trading policy in eastern, central and western regions as well as at different levels of power structures.

Carbon trading policy can significantly improve the energy efficiency of the power industry, and the policy effect is more significant in eastern and western regions and areas with high power structure. Mechanism analysis shows that carbon trading policy mainly influences the energy efficiency of power industry by environmental protection investment, power consumption demand and industrial structure.

This paper uses provincial panel data to deeply study the influence of carbon trading policy on energy efficiency of the power industry and its effect path. By constructing the difference-in-differences model, this paper empirically analyzes the governance effect of carbon trading policy. Meanwhile, it controls individual and time effects to solve the endogeneity problem prevalent in previous literature.

The purpose of this paper is to analyze emission trading applications in the European Union (EU) and to benefit from its experiences; also to discuss different types of energy financing mechanisms for Turkey, an emerging market which faces a fast growth of energy demand.

The Kyoto Protocol and its market‐based flexible mechanisms to reduce emissions worldwide are explained. The logic and development phases of an emission trading scheme (ETS) started in 2005 in the EU are given in response to this protocol's targets. With lessons learned from the ETS, the position of Turkey in terms of greenhouse gas emissions and its strategy to find solutions for a low carbon economy are underlined, as it can be assumed to be a reference point for other emerging markets.

This ETS became the main vehicle for EU member states to enforce themselves, to be in line with their Kyoto's emission reduction targets via some mechanisms and it has the potential to be leader in the formation of a global emission trading program. It made possible the transfer of technology and experience to emerging countries. Turkey should be aware and well prepared, for the post‐Kyoto period, to benefit from similar mechanisms to finance its energy investments.

The paper is a useful source of information for ETS.

This paper gives information on emission reduction mechanisms used worldwide by countries which aim to be a low carbon economy.

This paper fulfils a resource need for the structure of ETS and the position of Turkey as an emerging market with Kyoto's Protocol.

Besides organizational changes in the electricity supply industry there are growing concerns about environmental issues derived from the Kyoto Protocol for the reduction of greenhouse gas emissions as well as promoting renewable energies. The purpose of this paper is to address the source side emission trading impact on electricity prices in the competitive power market.

Various schemes are suggested and are being implemented to achieve this objective. It is expected that electricity price will increase due to imposition of emission taxes. This paper analyzes the impact of electricity prices in the competitive electricity markets having a uniform market clearing price mechanism.

It is found that the electricity prices depend on the system loading, generation mix, etc. at a particular hour. Various emission trading instruments are discussed with a special emphasis on the European market.

Block bidding of the suppliers is considered whereas the demand is assumed to be inelastic.

The emission trading impacts are analyzed on a simple example.

Purpose – The chapter reports a laboratory emissions trading experiment with imperfect enforcement that introduces environmental framing as a treatment variable.

Methodology – The research uses the methodology of laboratory experimental economics. In the current design, subjects self-reported their “emissions” at the end of each trading period and were inspected probabilistically and fined when they underreported.

Findings – Transaction volume and compliance rates were significantly lower in the environmentally framed condition, compared to the more standard neutrally framed control.

Practical implications – The latter result suggests that environmental framing reduced subjects' incentives to honestly report “pollution” to the experimental “regulator.” As experimenters employ more “framed field experiments” outside the lab, it may be important to evaluate such pure framing effects in the lab if a main research goal is to compare lab and field experiment outcomes.

Originality/value – Experimental economics research rarely manipulates environmental framing as a treatment variable. The substantial impact of framing on subject behavior documented in this study highlights its importance, particularly in the presence of moral concerns such as honest reporting.

This paper aims to explore how multinational corporations (MNCs) may operate in the context of a so‐called emergent institution which is not yet settled and taken for granted, thus helping to shape a new form of governance with considerable private involvement. The case used to illustrate emergent institutions involves market mechanisms for climate change, particularly emissions trading. This instrument is a crucial component of the Kyoto Protocol, which has started to be implemented, but is still surrounded by uncertainty and diversity across countries/regions.

Information from MNCs' responses to the Carbon Disclosure Project is used to shed light on their bargaining and nonbargaining activities and how these seem to relate to their overall strategy and location.

Both with regard to nonbargaining and bargaining strategies MNCs' prevailing view seems that they have to deal with distinctive national patterns, adopting a multidomestic, frequently home‐country‐focused approach. Their responses vary according to the national situation, with the level of activity in emissions trading frequently shaped by local management. Yet, the type of corporate structures created by some MNCs indicates that they take into account that EU‐ETS may form the onset for a more global emissions trading scheme.

Since market mechanisms for climate change are just unfolding, follow‐up studies into larger numbers of firms would be worthwhile to unravel the dynamics. The aspects identified in this paper can be used as starting point for such analyses.

The information and corporate considerations regarding market mechanisms for climate change can be helpful for both managers and policymakers in designing future approaches and reflecting upon the limitations and opportunities for MNC involvement in global governance.

The paper explores how MNCs may help shape an emergent institution, considering the fact that they face the dualility of managing a global context and multiple local contexts.

The purpose of this paper is to determine whether greenhouse gas (GHG) tradeable instruments will be classified as financial products within the scope of the World Trade Organization (WTO) law and to explore the implications of this finding.

This purpose is achieved through examination of the units of the Australian carbon pricing mechanism (the CPM), namely eligible emissions units. These units are analysed through the lens of the definition of financial products provided in the General Agreement for Trade in Services (the GATS).

This paper finds that eligible emissions units will be classified as financial instruments, and therefore the provisions that govern their trade will be regulated by the GATS. Considering this, this paper explores the limitations that are introduced by the Australian legislation on the trade of eligible emissions units.

This paper is limited in its analysis to the Australian CPM. In order to draw conclusions on the issues raised by this analysis, it is necessary to consider the WTO requirements against an operating emissions trading scheme. The Australian CPM presents a contemporary model of an appropriate scheme.

The findings in this paper are crucial in a GHG-constrained society. This is because emissions trading schemes (ETSs) are becoming popular measures for pricing GHG emissions, and for this reason the units that are traded and surrendered for emissions liabilities must be classified appropriately on a global scale. Failing to do this could result in differential treatment that may be contrary to the intentions of important global agreements, such as the WTO-covered agreements.

Estimates the cost of meeting the Kyoto Protocol with an energy‐economic optimization model. Special focus is on the Russian and Ukrainian and the potential implications of the US decision to withdraw from the Protocol. Finds that the carbon permit price can be expected to drop substantially due to US withdrawal. In fact, the aggregated emission target could be met in the absence of US participation. However, Russia and the Ukraine could be the dominant sellers of emission permits and they could increase the permit price. Clearly no climate benefits would result from trading emission permits that do not correspond to real reductions in CO₂ emissions. EU countries, Japan and Canada are not likely to be supportive of paying billions of dollars that do not result in emission reductions. One way of dealing with the Russian and Ukrainian surplus is to negotiate more stringent targets for subsequent commitment periods early, and to allow banking. The model suggests that, under these conditions, early action and banking do take place.

In the era of climate change, industrial organizations are under increasing pressure from consumers and regulators to reduce greenhouse gas emissions. The purpose of this paper is to examine the effectiveness of product mix as a strategy to deliver the low carbon supply chain under the cap-and-trade policy.

The authors incorporate the cap-and-trade policy into the green product mix decision models by using game-theoretic approach and compare these decisions in a decentralized model and a centralized model, respectively. The research explores potential behavioral changes under the cap-and-trade in the context of a two-echelon supply chain.

The analysis results show that the channel structure has significant impact on both economic and environmental performances. An integrated supply chain generates more profits. In contrast, a decentralized supply chain has lower carbon emissions. The cap-and-trade policy makes a different impact on the economic and environmental performances of the supply chain. Balancing the trade-offs is critical to ensure the long-term sustainability.

The research offers many interesting observations with respect to the effect of product mix strategy on operational decisions and the trade-offs between costs and carbon emissions under the cap-and-trade policy. The insights derived from the analysis not only help firms to make important operational and strategic decisions to reduce carbon emissions while maintaining their economic competitiveness, but also make meaningful contribution to governments’ policy making for carbon emissions control.

The purpose of this paper is to evaluate different greenhouse gas (GHG) mitigation policy instruments implemented in Slovenia, especially their impact on industrial competitiveness.

Analysis of existing mitigation policies.

The introduction of new policy instruments in Slovenia has not been very effective in curbing GHG emissions, but it certainly brought attention to the problem. As there is still a lot of space for improvements, additional effort should be made to improve existing instruments or to propose additional mitigation measures.

The paper evaluates existing policy instruments, which are still in their evolutional phases. The significance of this paper is to help to intensify indirect influence on GHG emissions reduction, especially on the national level, as proper introduction and understanding of the problem leads to more comprehensive and credible solutions regarding GHG emission reduction strategies. In addition, some new steps and/or measures are also indicated with this paper, especially concerning future evolution of EU emission trading scheme and national CO₂ tax regulation.

The paper is a new source of information about implementation of GHG mitigation policy measures in Slovenia. Analysis of adaptation and mitigation activities as well as integration of all aspects of climate change issues into strategies for sustainable development is of significant importance for the relevant decision makers – to monitor the impact of their own policies for domestic assessment purposes, that is to choose a policy strategy, to understand the implications of existing and alternative policy strategies, and to understand the joint interactions of multiple, individual policy strategies.